To that end, and in accordance with the land tenure and State property laws in force, the State may, depending on the respective status of the land concerned, either incorporate such parcels of land into its private or public property or order the expropriation thereof for public purposes.

Holders of the domestic transportation authorization shall be notified of the actions taken by the State to this effect and shall take into account the areas so set aside while carrying on with their petroleum operations.

The decree granting the land area shall temporarily allocate the said area for the construction, operation and maintenance of the hydrocarbon transportation system and confer on the holder of the domestic transportation authorization the land rights referred to in Section 69 of the code. This decree shall specify the time limit within which the holder of the domestic transportation authorization is required to communicate to the Minister in charge of hydrocarbons the coordinates of the land that makes up the hydrocarbon transportation system right-of-way.

In order to create the hydrocarbon transportation system right-of-way, the decree referred to above may be amended to preserve such land for the operation and maintenance of the hydrocarbon transportation system in accordance with the land tenure and State property laws in force.

The decree shall limit the rights of the holder of the domestic transportation authorization on the portion of the land area not included in the hydrocarbon transportation system right-of-way, and shall encumber it with easements of use for maintenance works involving excavation.

The lands constituting the right-of-way are and shall remain the private property of the State. They may under no circumstances be disposed of during the term of the petroleum contract, nor become the property of the holder of the domestic transportation authorization.

However, where the pipelines and other facilities referred to above hinder the normal use of the lands, and where the owner so request, the State shall, at the expense of the holder, expropriate the lands concerned and grant them through leases to the said holder, in accordance with the land tenure and State property laws in force.

Holders may under their responsibility sub-contract to qualified enterprises the petroleum operations for which they are responsible.

For purposes and within the limits of the petroleum operations assigned to them, the holder’s sub-contractors shall comply with the provisions of the laws and regulations in force.

Sub-contracts of a value above the ceiling amount set in the petroleum contract shall be disclosed to the Minister in charge of hydrocarbons or to any government body duly mandated for that purpose.

Holders of a petroleum contract acting as operator may delegate part of their petroleum operations to another holder equally acting as operator, for less than 12 (twelve) months, subject to prior approval by the Minister in charge of hydrocarbons.

Holders and their sub-contractors shall comply with the relevant hygiene and safety standards during petroleum operations, in accordance with the legislative and regulatory provisions in force and the current international petroleum industry best practices.

Holders shall, within forty-eight (48) hours, inform the competent administrative authorities about any serious accident during the conduct of petroleum operations.

Holders shall comply with all measures they may be instructed to take by the Minister in charge of hydrocarbons, including the installation, at their expense of equipment required to prevent or eliminate dangers that their petroleum operations may cause to public safety, the safety of civilians, personnel, the environment, or the conservation of classified sites and reserves, water sources or public roads, as provided for by the legislation and regulation in force.

However, holders shall be consulted regarding the conditions for carrying out such works in order to protect the interests of various parties.

In the case of commercial hydrocarbon production, and where the Minister in charge of hydrocarbons so request to satisfy the needs of the Cameroonian domestic market, holders shall, as a matter of priority, sell to the State or any duly mandated government body, the share of the hydrocarbon production to which they are entitled. The terms and conditions for fulfilling such obligation shall be specified by regulation.

Where the needs of the Cameroonian domestic market are satisfied, holders shall freely dispose of the share of hydrocarbon production to which they are entitled.

The conclusion of a petroleum contract shall, under no circumstances whatsoever, confer any right to refine or process hydrocarbons and/or sell and distribute products derived there from within the territory of Cameroon, since the said activities fall under the downstream petroleum sector, unless expressly authorized by the State.

When a hydrocarbon deposit covers several contract areas granted to

different holders or resulting from separate petroleum contracts containing different provisions with regard to entitlement to hydrocarbons, the holders may enter into an agreement known as “unitization agreement” to exploit such deposit under the best possible economic and technical condition.

The terms and conditions for such insurance policies shall be laid down by regulation.

The petroleum contract shall lay down the terms and conditions for guaranties and insurance policies which the holder is bound to take out for the State, third parties, the public and the environment, pursuant to the implementation of the code.

Notwithstanding any applicable criminal sanctions, holders of a petroleum authorization or contract who, due to their actions or that of their subcontractors, cause any physical, material or environmental damage shall , without need for proof of fault, be subject to civil liability when such damage is related directly or indirectly to the conduct of petroleum operations, related activities or facilities located

within or outside the contract area. Failing reparation in kind, the compensation paid shall fully repay the damage caused.

Where the State is not a holder, it may incur direct or indirect liability toward third parties for any damage resulting from the conduct of the holder’s petroleum operations.

The local content referred to in Section 86 of the petroleum code shall comprise a human resources development component and a component pertaining to the use of local services and goods supply companies.

The local content adopted in petroleum contracts shall include:

• A vocational and technical training programme for Cameroonians in order to scale up their skills in the petroleum trades;
• Any other aspect likely to enhance local content.

Petroleum contract holders shall, in case of equal competence and, as a matter of priority, to recruit qualified Cameroonians in all socio-professional categories and at all positions for the conduct of their petroleum operations.

Petroleum contract holders and their sub-contractors shall be bound, as a matter of priority, to award construction, insurance, goods and services, materials, equipment and products supply contracts directly or indirectly related to petroleum operations to companies under Cameroonian law that have their registered offices in Cameroon and meet internationally recognized standards.

The Minister in charge of hydrocarbons and/or any duly mandated government body or establishment shall ensure the implementation and monitoring of the above.

The domestic transportation authorization shall confer on holders of an exploitation authorization the right to transport the products of their exploitation activities or share thereof to any collection, export, processing, refining or storage point within the territory of Cameroon using their facilities or those of third parties while maintaining ownership rights.

The holder of an exploitation authorization whose entire exploitation area and facilities are situated offshore shall not be required to apply for a domestic transportation authorization.

The domestic transportation authorization shall comprise the approval of the construction plan for pipelines and related facilities. Such plan, whose contents shall be specified by the implementing decree of this Law, shall be appended to the application.

Land shall be used and the public interest statement required for pipelines and

related facilities issued under the conditions laid down in Part IV of the petroleum code.

The domestic transportation authorization referred to in Section 49 of the petroleum code may be transferred to third parties by any holder under the conditions laid down in Sections 19 to 22 of same code, and in the petroleum contract, subject to prior approval by the Minister in charge of hydrocarbons.

The beneficiaries of the above-mentioned transfer must fulfil the conditions laid down by the code and its implementing instrument relating to the construction and use of the pipelines and related facilities, as well as the special conditions specified in the petroleum contract.

Several holders of exploitation authorizations may agree to jointly carry out the transportation of their exploitation products.

All protocols agreements or contracts entered into between the concerned parties shall be subject to prior approval by the minister in charge of hydrocarbons.

The layout and features of pipelines and related facilities shall be such as to ensure that the products extracted from hydrocarbon deposits are collected, transported and removed under the best technical, economic, environmental and safety conditions.

Where several commercially exploitable hydrocarbon deposits are discovered in the same geographical area, the holders or beneficiaries of the transfer referred to in section 5 of the petroleum code may team up to jointly construct or use the pipelines and related facilities for the removal of all or part of the production derived from the said discoveries.

The objectives of such land enquiry shall be to:

(a) Determine the status of the land covered by the authorization or petroleum contract:

(b) Identify the holders of rights and property of portions of the land concerned:

(C) Inform the persons referred to in (b) above of the conditions for compensating them for the loss of their rights:

(d) Sensitize the population on petroleum operations.

Based on the findings of the land enquiry, the holder of an authorization or a petroleum contract shall submit to the competent authorities the required applications for land use in accordance with the laws and regulations in force.

Authorization for land use shall, where necessary be granted to the applicant to carry out petroleum operations and where the later fulfils the conditions laid down by the laws and regulations in force. In other cases, authorizations for land use shall be denied.

When an application relates to national land and private or public State land, authorizations for land use shall be granted by decree of the Prime Minister under the conditions provided for by the land tenure and State property regulations in force.

Where land use relates to private land owned by natural or legal persons, the Minister in charge of hydrocarbons shall submit an expropriation request to the Minister in charge of national lands in order for the State to acquire and place such land at the disposal of the holder in accordance with the land tenure and State property regulations in force.

Depending on the legal status of the lands concerned, the Minister in charge of hydrocarbons may request the Minister in charge of lands to classify as public land, incorporate into the private land of the State, or expropriate for public purposes, portions of land intended, as the case may be, to:

(a) Carve out land for construction, operation and maintenance of the hydrocarbons transportation system: or

(b) Carve out land to be covered by the protected areas previously specified by the Minister in charge of hydrocarbons and within which petroleum operations may be subject to certain conditions or prohibited, without giving rise to a claim for compensation in favour of the holder of an authorization or a petroleum contract.

Protected areas shall be created to preserve buildings, human settlements, springs, access roads, engineering structures and public interest works, as well as all other places where protected areas are considered necessary for the public interest.

The cost of releasing and making available the land referred to in Sections 58 and 59(1) of the petroleum code shall be borne by the holder who acquires the use of the land.

The decree referred to in Section 58(3) of the petroleum code may authorize the holder of an authorization or a petroleum contract to:

(a) Fell trees for wood required for its petroleum operations within the area of land used, against payment of the duties, taxes and royalties provided for by the laws in force; harness waterfalls and springs not exploited or reserved, subject to the applicable legal and regulatory provisions:

(b) Carryout the works necessary for its petroleum operations; within and outside the area covered by his authorization or the petroleum contract, and the related works referred to in section 61 of the petroleum code.

Apart from standard petroleum operations, the following activities and works shall be considered an integral part of petroleum operations where they are directly connected with hydrocarbon exploration and exploitation activities carried out by the holder of a petroleum contract:

(a) The building and operation of power plants, stations and lines:

(b) Telecommunications systems;

(c) Emergency facilities;

(d) Storage and warehousing of materials, equipment, products and waste, as well as facilities intended for ballasting and eliminating pollution;

(e) Buildings intended for staff accommodation, entertainment, hygiene, care and training:

(f) Construction or improvement of access routes, in particular roads, bridges, railroads, drains, canals, river or maritime ports and landing fields;

(g) Planting of reference and demarcation marks for the assigned land area.

The facility project referred to in Sections 60 and 61 of the petroleum code may be declared to be in the public interest under the conditions provided for by relevant applicable instruments, and the holder of an authorization or a petroleum contract being absolved of special or supplementary obligations imposed on him.

The holder of an authorization or a petroleum contract shall bear the expenses, compensation and, generally, all costs resulting from the implementation of Sections 57 to 62 of the petroleum.

The exploitation authorization shall cover the surface area of a commercially exploitable hydrocarbon deposit. It shall confer on its holder the exclusive right to carry out, at the holder’s risk and expense all petroleum operations within the limits of the relevant area, as well as the right to dispose of all or part of the hydrocarbon production, in accordance with the terms of the petroleum contract.

The grant of an exploitation authorization shall, under no circumstances confer ownership of the deposits. It shall create a right of limited duration which shall not be mortgageable and shall be distinct from ownership of the surface area. Such right shall be assignable under the conditions provided for in Sections 19 to 22 of the petroleum code.

The initial validity period of the exploitation authorization may not exceed twenty-five (25) years for liquid hydrocarbons and thirty-five years (35) years for gaseous hydrocarbons.

The exploitation authorization may be renewed only once at the holder’s request for a maximum additional period of ten (10) years, following the procedures provided for in Section 45 of the petroleum code, and in accordance with the laws and regulation in force.

To that end, holders must have fulfilled their obligations and provided evidence of the ability to continue commercial hydrocarbon production beyond the current validity period. Conditions for such renewal may be subject to renegotiation of the petroleum contract terms, at the sole discretion of the State or the public body duly mandated for that purpose.

Where the rights to be assigned were granted by a decree in the specific case of exploration authorizations, exploitation authorizations, transportation authorizations and provisional exploitation authorizations, such rights shall be effectively assigned by a new decree signed by the same authority.

Subject to implementation of the pre-emptive right provided for under Section 22 of the petroleum code, the petroleum contract may, in addition to prior approval by the Minister in charge of hydrocarbons lay down special terms and conditions for assigning rights and obligations under the petroleum contract to an affiliate or among co-holders.

The assignee of rights and obligations must fulfil the conditions provided for in the petroleum Code and its implementing instrument.

A petroleum contract holder shall submit to the Minister in charge of hydrocarbons for prior approval any deed or draft thereof whereby the holder assigns or promises to assign, in whole or in part the rights and obligations resulting from the petroleum contract.

Contracts or agreements on the assignment of rights shall be entered into after the prior opinion of the Minister in charge of finance, subject to the suspensive condition of obtaining the approval of the Minister in charge of hydrocarbons. Any deed executed in breach of the provisions of the code shall be null and void and lead to withdrawal of the authorization and/or forfeiture of the petroleum contract in accordance with the provisions of Section 126 of the petroleum code.

Where a transaction results in a change of control of the holder company, the said company shall apply for prior approval by the Minister in charge of hydrocarbons concerning the assignment of its rights and obligations under the petroleum contract to the beneficiary of the change of contract, in accordance with the terms and conditions specified by the implementing decree of the petroleum code.  

The holder or an exploration authorization may relinquish all or part of its rights over the surface areas covered by its authorization, provided that a two month notice is given to the Minister in charge of hydrocarbons.

Relinquishment shall take effect from the date of its approval by the Minister in charge of hydrocarbons. This shall lead to the cancellation of the authorization over the area covered by such relinquishment.

Except otherwise provided for in the petroleum contract, partial relinquishment shall not reduce the holder’s contractual obligations.

Total relinquishment shall result in the lapse of the petroleum contract. Such relinquishment shall be accepted only where the holder has fulfilled all the obligations laid down in the petroleum contract and the regulations in force, particularly with regard to environmental protection and the abandonment of

deposits and wells, and where he has paid the compensation due the State provided for in Section 34 of the petroleum code.

Holders of exploitation authorizations may relinquish, in whole or in part, their rights over the surface areas covered by their authorization, provided that a one-year notice is given to the Minister in charge of hydrocarbons and the holder has fulfilled the obligations laid down in the petroleum contract and

the regulations in force, especially with regard to environmental protection and the abandonment of deposits and wells.

Prospecting authorizations shall confer on their holders the non-exclusive right to carry out preliminary prospecting within a specified area. They shall not constitute hydrocarbon-mining titles and shall not be transferable or assignable.

Prospecting authorizations shall not confer on their holder any right to obtain a Hydrocarbon mining title or to enter into a petroleum contract.

The above provision notwithstanding, and where exceptional circumstances so require in particular for special petroleum operations zones, a prospecting authorization may, during its validity period, confer a preferential right on its holder to conclude a petroleum contract on equivalent terms and conditions within all or part of the same area, or an exclusive right of limited duration to enter into a petroleum contract for all or part of the area.

Prospecting authorizations shall be granted subject to third-party rights.

The State may also grant prospecting authorization solely for technical information collection purposes.

Several prospecting authorizations may be granted concurrently for the same area.

Subject to the provisions of Section 27(4) of the petroleum code, the State may at any time, sign a petroleum contract on all or part of the area for which a prospecting authorization has been granted. Such authorization shall automatically elapse with regard to the area concerned, without the prospecting authorization holder being entitled to compensation.