U.S. oil company Murphy Oil Corporation has signed four production-sharing contracts with Cameroon covering offshore oil and gas exploration blocks in the Douala/Kribi-Campo Basin. The agreements cover Elombo, Etinde Exploration, Ntem and Tilapia, with a combined area of approximately 10,578 square kilometres.
The contracts were signed in Yaoundé on November 11, 2026, following the award of the blocks under an international licensing process, Business in Cameroon reported.
The estimated exploration programme amounts to $202.4 million. However, approximately $200 million, or 98.8 percent of the total, is linked to drilling commitments that would apply only if the exploration permits are extended. The initial three-year phase requires minimum spending of $600,000 per block, or $2.4 million across all four areas, primarily for seismic data reprocessing and geological studies.
The contracts provide for two possible extensions of two years each. At each renewal, Murphy is expected to drill one exploration well per block, at an estimated cost of $25 million per well. If both extensions are granted across all four blocks, the programme could include up to eight wells.
Murphy's subsidiary will initially hold a 100 percent working interest in the blocks and act as operator. Cameroon's state-owned National Hydrocarbons Corporation (SNH) retains the right to acquire a stake of up to 20 percent in any future development.
The agreements come as Cameroon seeks to strengthen its exploration portfolio amid declining output from mature oil fields. According to national hydrocarbons company figures cited by local media, crude oil production fell by 9.4 percent in 2025, to 19.374 million barrels.
The signing marks a new stage in Murphy's assessment of Cameroon's offshore resources, although the scale of actual investment will depend on exploration results and decisions on extending the permits.
