Cameroon has awarded five of nine oil blocks in its latest licensing round to Murphy Oil Corporation and Octavia Energy Corporation, signalling cautious investor interest as the country seeks to revive upstream exploration and slow declining crude output.
State oil firm Société nationale des hydrocarbures (SNH) said the awards mark the start of a negotiation phase that could lead to production-sharing contracts governing exploration and potential future production.
The licensing round, launched on Aug. 1, 2025, covered nine blocks across two basins. Results released on Friday show that four blocks remained unassigned, underscoring a selective investment climate in the global oil sector.
SNH Managing Director Adolphe Moudiki said Murphy Oil, through its subsidiary Murphy West Africa Ltd, secured four blocks in the Douala/Kribi-Campo basin — Etinde Exploration, Tilapia, Elombo and Ntem. Octavia Energy was awarded the Bolongo Exploration block in the Rio del Rey basin.
The awards do not immediately translate into production. Instead, they open negotiations that will determine fiscal terms, work commitments and timelines for exploration under production-sharing contracts.
Four blocks — out of three in the Rio del Rey basin and six in the Douala/Kribi-Campo basin — failed to attract bids deemed suitable for award. The outcome reflects restrained capital spending by oil companies globally, which are prioritising assets with clearer commercial viability.
Cameroon’s crude output has hovered around 60,000 barrels per day in recent years, relatively modest by African standards. The country is seeking to reverse declines from ageing fields by attracting fresh exploration investment and renewing reserves.
Under the production-sharing model used in Cameroon, the state retains ownership of hydrocarbon resources while investors bear the financial risk of exploration. If discoveries prove commercially viable, output is shared between the operator and the state.
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SNH said the awarded blocks benefit from existing geological data, including 2D and 3D seismic surveys and prior drilling activity, which could help reduce exploration risk and improve investor confidence.
The partial allocation highlights both opportunity and caution. While the participation of an established international player like Murphy Oil points to continued interest in Cameroon’s offshore potential, the unawarded blocks indicate that competition for exploration capital remains intense.
The next phase — contract negotiations followed by exploration activity — will determine whether the round delivers on its goal of reinvigorating Cameroon’s upstream sector and stabilising long-term oil production.
