Cameroon Wants New Transit Fee Contract with Chad

Cameroon is looking for a new contract with Chad over oil transportation. Chad, as a landlocked country, has its production piped through Cameroon for export through the Chad-Cameroon pipeline. It was not revealed what price Cameroon was willing to take for its participation in the pipeline. 

The pipeline has been up and running since 2003, earning Cameroon’s government an estimated $171 million through its participation in the Cameroon Oil Transportation Company (COTCO). Now, however, the government wants more for its throughput and wants the contract between Chad and COTCO renegotiated.

This is not the first time Cameroon has asked for a renegotiation, in 2009 Chad and Cameroon renegotiated the transit fees. At the time Cameroon wanted the transit fee of $0.41 cents per barrel it negotiated at the start of the project to be revised upwards to reflect sharp rises in the price of oil to $1 per barrel, or failing this, the agreement on a formula that the would reflect fluctuations in world oil prices.