Cameroon generated XAF11.6 bln of transit duties on the Chad-Cameroon pipeline in Jan-Apr 2021 (PSMC)

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Business in Cameroon | Cameroon collected XAF11.6 billion as transit duties on the Chad-Cameroon oil pipeline between January and April 2021, according to the Pipeline Steering and Monitoring Committee (PSMC).

The revenue was generated thanks to the little over 16 million barrels of crude oil produced on Chad oil fields and exported through the Komé terminal in Kribi. This volume of crude oil is down by 5.6% compared with the over 17 million barrels of crude produced and exported during the same period in 2020.

As the transit fee collected by Cameroon per barrel of crude on the pipeline has not changed between 2020 and 2021, this reduction in the volume of crude that transited means the amount of transit duties Cameroon collected in 2021 is surely down compared to the January-April 2020 amount.

Let’s note that after tough negotiations with COTCO, the firm in charge of the pipeline, Cameroon obtained a revalorization of the transit duties on the Chad-Cameroon pipeline, meaning more revenues for the State. The agreement also specifies that the price will be updated every five years. The last revalorization took place in 2018; so, the next will take place in 2023.

Source: cameroononline.com