Chad-Cameroon pipeline boosts transit revenues to 12.2 billion FCFA in 2026

Cameroon’s transit revenue from Chad’s crude oil transported via the Chad-Cameroon pipeline reached 12.2 billion FCFA in the first four months of 2026. This figure, released by the Pipeline Steering and Monitoring Committee (CPSP), marks a year-on-year increase of 1.2 billion FCFA, representing an 11% rise compared to the same period in 2025. The growth stems from a cumulative volume of 16.1 million barrels of Chadian crude transported across Cameroonian territory during the reviewed period.

Critical infrastructure for Chad’s energy isolation

Stretching over 1,080 kilometers, this pipeline connects Chad’s southern oil fields to the Komé-Kribi export terminal on Cameroon’s coast. Without direct maritime access, N’Djamena relies entirely on this artery to move its production to global markets. Operational since the early 2000s, the infrastructure was initially developed under a consortium led by ExxonMobil and remains the sole viable export corridor for Chad’s crude oil.

For Cameroon, this geographical dependence translates into steady budgetary inflows. Each barrel crossing its territory generates a transit fee of $1.321, credited to the public treasury. While straightforward, the cumulative impact of these fees strengthens non-tax revenues for Yaoundé, especially as the country seeks to diversify income amid a declining domestic hydrocarbon output.

Transit fees tripled over two decades

The current fee structure results from a series of negotiations initiated in 2013. Initially set at $0.41 per barrel, the rate was deemed insufficient by Cameroonian authorities given the environmental and logistical risks borne by the transit country. Under Yaoundé’s pressure, a five-year review mechanism was established, with two successive adjustments in 2013 and 2018 pushing the fee to its present level.

In practical terms, the unit rent has more than tripled over 15 years. This upward trend has aligned Cameroon’s transit financial terms with benchmarks seen in other African oil corridors, such as the BTC system in Central Asia or arrangements on the neighboring Chad-Cameroon Pipeline Company (COTCO) pipeline. However, the next scheduled adjustment has yet to materialize.

2023 fee revision still pending

According to the agreed schedule, a new increase should have taken effect on October 1, 2023. More than two years later, no official announcement has confirmed the conclusion of negotiations or the implementation of an adjustment. The prolonged silence raises questions, particularly as Cameroonian authorities have recently emphasized optimizing oil revenues.

Several factors may explain this stalemate. Chad’s political transition following the late President Déby’s era and N’Djamena’s budgetary constraints have narrowed the negotiating margin for Chadian officials. Meanwhile, Chad’s oil production has experienced notable fluctuations, which could prompt operators to advocate for tariff stability to sustain profitability in declining fields. On Cameroon’s side, the priority is diametrically opposed: maximizing revenue from an infrastructure with a finite useful lifespan.

Despite the uncertainty, the current dynamics are mechanically advantageous for the state budget. If the first four months’ pace holds, annual transit revenue could exceed 35 billion FCFA in 2026. This would solidify the Chad-Cameroon pipeline’s position as a strategic foreign exchange generator for Yaoundé, alongside Kribi’s gas projects and agricultural exports. No official update has been issued regarding the ongoing tariff negotiations with Chad.