Yaounde (Reuters) – Cameroon’s government and COTCO, the company that owns and manages the pipeline shipping oil from Chad to Cameroon’s coast, have agreed to more than triple the transit fee paid to Cameroon’s government.
Cameroon will now receive 618.02 CFA francs ($1.30) per barrel of oil, up from 194.91 CFA francs, according to an agreement signed on Tuesday but announced by Cameroon’s state oil company SNH on Wednesday.
“This rate will be upgraded every five years based on the average rate of inflation provided by Central Africa’s regional central bank,” the statement said.
SNH said that 410.42 million barrels of oil were shipped to Cameroon’s Kribi port through the pipeline between October 2003, when oil started flowing, and October 2011.
Cameroon earned some $168 million in transit fees as a result, the statement said.
COTCO is a venture vehicle that manages the Cameroon portion of the pipeline. It is owned by ExxonMobil Corp., Chevron Petronas and the governments of Chad and Cameroon.