Cameroon and Equatorial Guinea have reached an agreement to jointly develop the cross-border Yoyo–Yolanda offshore gas field, clearing a key hurdle toward exploiting reserves estimated at about 2.5 trillion cubic feet of natural gas.
The unitization deal establishes a common technical, legal and operational framework for developing the shared reservoir, which straddles the maritime boundary between the two Central African neighbours. Officials say the agreement is designed to prevent competing production and ensure an agreed allocation of volumes between the two states.
Cameroon’s acting minister of mines, industry and technological development, Fuh Calistus Gentry, has been leading an official delegation to Equatorial Guinea since Feb. 1 to finalise the agreement. The accord marks the culmination of several years of technical studies and bilateral negotiations over the offshore resource.
Unitization is a standard mechanism in the oil and gas industry for managing reservoirs that extend across international borders. Under such arrangements, a single development plan governs production, with output shared according to an agreed formula based on estimated reserves.
Joint studies conducted by the two countries and their partners allocate about 84% of the recoverable gas to the Yoyo block on the Cameroonian side, with the remaining 16% attributed to the Yolanda block in Equatorial Guinea, according to sources familiar with the project.
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The agreed development concept centres on the Yoyo block. Plans include the installation of a gas processing platform within Cameroon’s production-sharing contract area and the drilling of three development wells. The framework also allows drilling and related operations to be conducted on both sides of the maritime boundary, reflecting the integrated nature of the reservoir.
U.S.-based Chevron has been appointed technical operator of the project, while Noble Energy is among the partners involved, according to industry sources. Total investment is estimated at around $4 billion, to be converted into CFA francs at the exchange rate prevailing at the time of the final investment decision.
The project rests on a bilateral legal framework that has already been ratified by the parliaments of both Cameroon and Equatorial Guinea. The agreement was formally deposited with the United Nations Secretariat in January 2025, giving it binding international status and reducing the risk of future legal disputes.
Despite the progress, some issues remain unresolved. Negotiations are continuing with the operator over the law applicable to the production unit and the foreign exchange regime that will govern project revenues, officials said.
Foreign exchange rules are seen as particularly sensitive, as they will determine how export earnings are repatriated and shared. Both governments are seeking assurances that the framework will provide stable and predictable revenue flows over the life of the project.
The timing of the agreement reflects growing pressure on hydrocarbon-producing states in the Gulf of Guinea. Cameroon and Equatorial Guinea have both been hit by declining oil output as mature fields age, while revenues have been exposed to volatile international prices and currency fluctuations.
Gas development is increasingly viewed by both governments as a way to stabilise export earnings, support power generation and underpin broader economic diversification efforts. For Equatorial Guinea in particular, gas has become central to its energy strategy as crude oil production continues to fall.
Officials said the Yoyo–Yolanda project could also strengthen regional cooperation and serve as a model for managing cross-border resources in Central Africa, where several offshore reservoirs extend across national boundaries.
A timeline for a final investment decision has not yet been announced. Industry sources said progress on the remaining legal and fiscal issues would be critical to moving the project into the execution phase.
Once developed, the field is expected to contribute significantly to gas output in both countries, supporting domestic energy needs and exports, while reinforcing investor confidence in the region’s upstream sector.
