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Cameroon & Consortium Sign A $438 Million Deal On Pipeline Partnership

Caroline Vutagwa by Caroline Vutagwa
6 years ago
in Business
3 min read
0

oil-well-art-d0e8499fbec07478

 

Cameroon and a consortium and Houston-based Govind Development have signed an agreement worth 230 billion CFA francs ($438 million) to build an oil pipeline from its petroleum hub Limbe to other cities.

The Cameroonian government said that the 355 km pipeline will ease supply and bring down the cost of transporting petroleum products in the country.

They said: “The partnership agreement covers the design, financing, construction, operation and maintenance of the pipeline system to transport petroleum products from Limbe to (the capital) Yaounde.”

The Nigerian and South African consortium, Petroleum Products Pipeline SA (3PL), will lead the construction of the main pipeline from Limbe in the South-West Region to Yaounde, passing through the economic capital Douala.

Govind will construct branches of the pipeline to the provincial capitals of Bamenda and Bafoussam in the North-West and Western Regions respectively, the statement said. It added that about 30 percent of the construction will be funded by the consortium which will manage the pipeline for 27 years.

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Crude oil in the relatively small oil producer in the Gulf of Guinea is refined in the coastal city of Limbe from where it is distributed mostly by trucks to the rest of the country.

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Caroline Vutagwa

Caroline Vutagwa

Minding my own business is not enough for me that's why you will always find me minding Africa's Businesses as well as Technology and of course letting you know about it. Talk to me on [email protected]

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