Cameroon and Equatorial Guinea have reached agreement on the unitization of the cross-border Yoyo–Yolanda gas field, a key step toward joint development of reserves estimated at 2,500 billion cubic feet of natural gas.

Cameroon’s acting minister of mines, industry, and technological development, Fuh Calistus Gentry, has been leading an official mission to Equatorial Guinea since February 1, 2026, to finalize the unitization agreement. The deal is intended to establish a common framework for exploiting the shared offshore reservoir.

Unitization allows a single reservoir straddling a maritime boundary to be developed under harmonized technical, contractual, and operational rules. The approach is designed to prevent competing production and ensure an agreed allocation of volumes between the two states.

84%–16% split and Yoyo-centered development plan

The agreement aligns the technical and contractual frameworks of two offshore blocks located on either side of the maritime border. Joint studies allocate 84% of the reserves to the Yoyo block on the Cameroonian side and 16% to the Yolanda block in Equatorial Guinea.

The development plan предусматриes the installation of a processing platform within the Yoyo production-sharing contract area, along with the drilling of three development wells. According to a source familiar with the project, the agreement allows operators Noble Energy and Chevron to carry out drilling operations on both sides of the border.

Chevron as technical operator, $4 billion investment

The project will be developed under the technical leadership of U.S.-based Chevron, which has been appointed operator. Total investment is estimated at $4 billion, to be converted into CFA at the exchange rate applied at the time of the final investment decision.

The project is supported by a bilateral legal framework already ratified by both national parliaments and formally deposited with the United Nations Secretariat in January 2025, giving it binding and irreversible status.

Outstanding issues: applicable law and foreign exchange rules

While the main parameters have been agreed, discussions are continuing with the operator on the law applicable to the production unit and on foreign exchange regulations. These points are seen as critical to securing revenues from the project and ensuring stable gas income flows.

The project timeline and economic balance are also shaped by pressure on hydrocarbon revenues. Cameroon and Equatorial Guinea are facing a steady decline in oil income due to aging fields, volatile international prices, and dollar instability.

Source: Business in Cameroon