Investment in Cameroon’s oil and gas production slowed sharply in 2023. According to official sector data in the annual report of the National Hydrocarbons Corporation (SNH), capital spending totaled CFA169.5 billion ($301.21 million), down from CFA240 billion ($427.07 million) in 2022, a decline of 29.47%.
The drop was driven mainly by reduced investment in two major operating associations. Spending in Iroko fell by CFA32.8 billion ($58.57 million), while investment in Sanaga declined by CFA38.7 billion ($69.05 million).
The pullback in investment had an immediate impact on technical unit costs. For producing oil fields, the average annual production cost fell to $26.15 per barrel, from $31.55 in 2022. The reduction was attributed to the scaling back of investment programs.
In the gas segment, the effect was even more pronounced. The technical unit production cost for the Sanaga Sud Association dropped to $3.46 per barrel of oil equivalent, compared with $7.49 a year earlier.
By contrast, operating costs moved in the opposite direction. For liquid hydrocarbon fields, the unit operating cost rose slightly to $10.78 per barrel, from $10.43 in 2022. According to the annual report, the increase reflects higher operating expenses combined with a slight decline in annual production.
In the gas sector, operating costs at the Sanaga Sud Association also increased, reaching $1.82 per barrel of oil equivalent, up from $1.28 a year earlier.
Taken together, these trends point to a mixed year for Cameroon’s hydrocarbon sector. Field maturity and rising operating expenses pushed costs higher, highlighting growing challenges in maintaining the profitability of existing oil and gas assets.
Amina Malloum
