Cameroonian crude oil price drops by 46.90%

In terms of oil revenues for 2016, Cameroon has decided to go for extreme caution, considering the international environment is still not very good for the price of a barrel of crude oil.

Based on the Finance bill currently under review by Parliament, the government is counting on oil revenue reaching FCFA 397.2 billion in 2016, against forecasts of FCFA 774.9 billion in 2015, thus a drop of almost 50%.

At the root of this drastic drop in the forecasts, which reduces the proportion of oil revenues in the budget of the Cameroonian state to scarcely 10%, as against 25% in the past, is the fall in world oil prices.

The National Oil Company (SNH) highlighted that in the latest edition of its magazine, "between June 2014 and June 2015, the average rate of Brent which is the reference for fixing the price of Cameroonian crude oil has declined by 46.9% to remain at USD 57.84 per barrel".

During the first semester 2015, the same source said, the price of Cameroonian crude oil further decreased to peak at only USD 55. This is sufficient enough for the Cameroonian State, who is counting on oil production at 34.6 million tons in 2016, to revise downwards its previsions in terms of revenues.

Moreover, to avoid any unforeseeable surprise on the oil market during the year, the government of Cameroon, while putting together its 2016 budget, took the option of banking on a barrel price at USD 40, even though the current price is far higher than this limit.