• Cameroon awards five oil blocks to Murphy Oil and Octavia

• Four of nine blocks unassigned, reflecting cautious investor interest

• Deals enter negotiation phase; aim to revive declining oil output

Cameroon’s national oil company, Société nationale des hydrocarbures (SNH), has awarded five of the nine blocks offered in its latest licensing round to Murphy Oil Corporation and Octavia Energy Corporation, marking a new phase in efforts to revive upstream exploration.

SNH released the bidding results on Friday, April 24. The round was launched on Aug. 1, 2025.

According to a statement from SNH Managing Director Adolphe Moudiki, Murphy Oil, through its subsidiary Murphy West Africa Ltd, was awarded four blocks in the Douala/Kribi-Campo basin: Etinde Exploration, Tilapia, Elombo and Ntem. Octavia Energy Corporation was awarded the Bolongo Exploration block in the Rio del Rey basin.

The awards do not signal the start of production. They open a negotiation phase with the selected operators, leading to the signing of production-sharing contracts that will set the terms for exploration and, if a commercial discovery is made, the development and production of deposits.

Five Blocks Awarded Out of Nine Offered

The licensing round initially covered nine blocks across two sedimentary basins. In the Rio del Rey basin, three blocks were on offer: Ndian River, Bolongo Exploration and Bakassi. In the Douala/Kribi-Campo basin, six blocks were available to investors: Etinde Exploration, Bomono, Nkombe-Nsepe, Tilapia, Ntem and Elombo.

Four blocks were therefore not awarded, according to the results released by SNH. That suggests modest investor appetite in a market where oil capital tends to flow toward assets seen as more promising or less risky.

For Cameroon, the objective is clear: revive upstream activity, renew reserves and slow the natural decline of mature fields. National production remains modest by African standards, at around 60,000 barrels per day, according to figures reported by sector authorities in recent years. This trend makes exploration strategically important for preserving hydrocarbon revenues.

The awarded blocks are expected to be developed under production-sharing contracts, the main mechanism used in Cameroon’s upstream oil sector. Under this model, the state retains ownership of subsurface resources while the private operator finances exploration work at its own risk.

If no commercial discovery is made, the investor bears most of the cost. If it is, production is shared between the state and the operator under the terms set out in the contract.

This structure helps Cameroon attract capital and technical expertise without taking on the heavy costs associated with a high-risk exploration phase.

A Cautious Revival of Upstream Activity

SNH has highlighted the potential of the blocks, pointing to their proximity to areas already explored or in production, the availability of 2D and 3D seismic data, and prior drilling activity with identified prospects. These factors help reduce technical risk for investors.

The award of only five blocks out of nine also reflects the selective pace of this exploration rebound. The global oil market continues to be shaped by strict capital discipline among companies, which favor assets offering sufficient geological, fiscal and commercial visibility.

In that context, the entry or return of international operators such as Murphy Oil is a positive signal for Cameroon. But the impact of this licensing round will depend on two key steps: the signing of production-sharing contracts and the ability of the selected operators to move quickly into exploration.

For Yaounde, the stakes go beyond allocating blocks. The goal is to gradually rebuild its oil asset base in a regional environment where competition for exploration investment is intensifying.

Amina Malloum, with Business in Cameroon