(Business in Cameroon) – The national oil company, SNH, through its subsidiary Tradex and in partnership with the Ariana/RCG consortium, is spearheading the CSTAR Refinery Project. This project involves a modular oil refinery with a projected capacity of 30,000 barrels per day. The plant will be located within the Kribi industrial-port zone on a 250-hectare site. Sources close to the project indicate that land securing is currently underway via a framework agreement with the Kribi Port Authority.
Construction is set to begin in the coming weeks and will span 18 months, with commissioning expected in June 2028. The project comes at a time when the country’s only refinery, Sonara, remains offline following a major fire in June 2019. Since then, Cameroon, despite producing around 72,000 barrels of crude oil daily, has been entirely reliant on imports for refined fuel.
A National Solution to an Energy Vulnerability
The Kribi refinery aims to reduce fuel imports by 30%, potentially saving the country 400 billion CFA francs annually, according to project promoters. It is designed as a strategic response to Cameroon’s current energy dependency. The facility will utilize advanced modular technology, with prefabricated equipment built in Abu Dhabi and assembled onsite. It will primarily process crude from Cameroon’s Ebome field, based on the project’s concept note.
The engineering consortium is led by RCG Turnkey Solutions in partnership with Global Process Systems (GPS) and Norinco International. These firms have experience on projects such as China’s Huajin Aramco complex (300,000 BPD), the Assa North-Ohaji South gas project in Nigeria, and Adnoc’s Takreer refinery in the UAE.
Project Funding and Governance
The project’s financial structure will combine 40% equity and 60% international debt, with negotiations ongoing with both local and global lenders.
To oversee the project, CSTAR’s board has created a special-purpose vehicle (SPV) under Emirati law, with SNH holding a 65% stake and Ariana Energies 35%. The SPV will operate under English law, with international arbitration to be based in Dubai or Singapore. A joint operating company will manage refinery operations. A joint management committee will monitor all phases through to full industrial operation.
Economic and Strategic Impact
Beyond reducing import dependency, the project could generate 600 billion CFA francs annually for Cameroon’s balance of payments. Government revenues from marine fuel exports alone could reach 141 billion CFA francs, projections show.
The project is expected to create 2,000 direct and 5,000 indirect jobs, with skill transfers to local engineers and technicians. Despite high expectations, key questions remain. The total project cost has not yet been disclosed, and detailed execution plans are still incomplete. At a time when Cameroon is striving to reclaim its energy sovereignty, entrusting such a critical asset to a foreign-registered company with offshore arbitration has sparked valid concerns.
To ensure Kribi does not become another unfulfilled mega-project, the challenge will be to guarantee that this refinery truly serves Cameroon’s strategic interests, before those of more agile, less transparent investors.
Ludovic Amara
