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EITI Cameroon 2017 Report

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EITI Cameroon 2017 Report Cameroon EITI Report 2017 Extractive Industries Transparency Initiative in Cameroon EITI REPORT 2017 February 2020 Cameroon EITI Report 2017 |BDO Consulting |Page 2 Cameroon EITI Report 2017 This document has been translated from the French original for reference purposes only. In the event of any discrepancy between this translated document and the French original, the original shall prevail. |BDO Consulting |Page 3 Cameroon EITI Report 2017 Contents 1 EXECUTIVE SUMMARY .......................................................................................... 13 1.1 Introduction .............................................................................................................. 13 1.1.1 Context ............................................................................................................. 13 1.1.2 Mandate of the Independent Administrator (IA) ............................................................ 13 1.1.3 Participants in the 2017 EITI Report .......................................................................... 13 1.1.4 Limitations of the 2017 EITI Report ........................................................................... 13 1.2 Key figures of the EITI Report 2016 .................................................................................. 14 1.2.1 Revenues from the Extractive sector .......................................................................... 14 1.2.2 Payments from extractive companies ......................................................................... 15 1.2.3 Contribution of the Extractive Sector to the State Budget ............................................... 16 1.2.4 Production and export ........................................................................................... 16 1.2.5 Contribution to the economy ................................................................................... 17 1.3 Main findings ............................................................................................................. 18 1.3.1 Data comprehensiveness ........................................................................................ 18 1.3.2 Results of the reconciliation work ............................................................................. 18 1.3.3 Reliability of data ................................................................................................ 19 1.4 Recommendations ....................................................................................................... 20 2 OVERVIEW OF EITI IN CAMEROON ........................................................................... 22 2.1 The Extractive Industries Transparency Initiative in Cameroon (EITI) .......................................... 22 2.2 EITI in Cameroon ........................................................................................................ 22 2.3 Open data policy ........................................................................................................ 22 3 SCOPE AND RESULTS OF THE RECONCILIATION .......................................................... 24 3.1 Scope of the 2017 EITI Report ......................................................................................... 24 3.1.1 Covered period .................................................................................................... 24 3.1.2 Covered sectors ................................................................................................... 24 3.1.3 Reconciliation scope ............................................................................................. 24 3.1.4 Level of data disaggregation ................................................................................... 26 3.2 Approach for the data collection and reconciliation .............................................................. 26 3.2.1 Data collection .................................................................................................... 26 3.2.2 Reporting template .............................................................................................. 26 3.2.3 Data reconciliation ............................................................................................... 26 3.2.4 Data assurance procedures ...................................................................................... 27 3.3 Results of the reconciliation work .................................................................................... 28 3.4 Comprehensiveness and reliability of the reported data ......................................................... 35 4 EXTRACTIVE SECTOR IN CAMEROON ........................................................................ 38 4.1 Hydrocarbons sector .................................................................................................... 38 4.1.1 General overview of the sector ................................................................................ 38 4.1.2 Legal framework and tax regime .............................................................................. 38 4.1.3 Award and transfer of permits ................................................................................. 42 4.1.4 Register of licences .............................................................................................. 46 4.1.5 State participation ............................................................................................... 47 4.1.6 Oil and gas activities ............................................................................................. 55 4.1.7 Production regions ............................................................................................... 55 4.1.8 Petroleum contracts and in-kind revenues ................................................................... 55 4.1.9 Transportation revenues ........................................................................................ 56 4.1.10 Infrastructure provisions and barter arrangements ........................................................ 57 4.1.11 Local content and social spending ............................................................................. 57 4.2 Mining and Quarrying Sector ........................................................................................... 57 4.2.1 General overview of the sector ................................................................................ 57 4.2.2 Legal framework and tax regime .............................................................................. 58 |BDO Consulting |Page 4 Cameroon EITI Report 2017 4.2.3 Licensing and transfer ........................................................................................... 61 4.2.4 Register of permits ............................................................................................... 63 4.2.5 State participation ............................................................................................... 64 4.2.6 Mining exploration activities ................................................................................... 65 4.2.7 Production regions and export ................................................................................. 66 4.2.8 In kind revenues .................................................................................................. 66 4.2.9 Transportation in the mining sector .......................................................................... 66 4.2.10 Infrastructure provisions and barter arrangements ........................................................ 67 4.2.11 Local content and social spending ............................................................................. 67 4.2.12 Artisanal sector ................................................................................................... 67 4.3 Management of extractive revenue .................................................................................. 69 4.3.1 Legal Framework governing the national budget ........................................................... 69 4.3.2 National public financial management system .............................................................. 69 4.3.3 National budget preparation and audit process ............................................................. 69 4.3.4 Extractive revenue collection .................................................................................. 70 4.3.5 Subnational transfers and revenues allocated to special funds .......................................... 70 4.3.6 SNH direct operations ............................................................................................ 75 4.3.7 Payment flows diagrams ......................................................................................... 78 4.4 Contribution to the economy .......................................................................................... 80 4.4.1 Contribution to the state budget .............................................................................. 80 4.4.2 Contribution to GDP .............................................................................................. 81 4.4.3 Contribution to exports ......................................................................................... 81 4.4.4 Contribution to employment ................................................................................... 81 4.5 Audit practices .......................................................................................................... 82 4.5.1 Accounting framework and audit practices in Cameroon .................................................
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