The announcement was made recently, by a representative of the Executive General Manager of the National Hydrocarbons Corporation, SNH, and Chair of the CSTAR Board of Directors. The multi-million-dollar initiative, aims to boost local fuel production, reduce imports, and position Cameroon as an energy hub in Central Africa.
Over 2,000 direct and 5,000 indirect job opportunities are expected to emerge from the CSTAR Refinery Project, which has officially launched construction in Lolabé, Ocean Division of Cameroon’s South Region. The announcement was made on July 17, by Nathalie Moudiki, representative of the Executive General Manager of the National Hydrocarbons Corporation, SNH, and Chair of the CSTAR Board of Directors. Speaking during the launch ceremony, Moudiki highlighted the project’s national significance, not only in employment creation but in achieving Cameroon’s long-term energy independence.
The event brought together a host of dignitaries including the Mayor of Kribi, Guy Emmanuel Sabikanda, officials from Ariana Energy and TRADEX, administrative authorities, traditional rulers, and religious leaders. Moudiki revealed that the CSTAR project, an acronym representing its partners, Cameroon, SNH, TRADEX, and Ariana Energy, is designed to cost between 198 to 200 million US dollars, equivalent to over 112 billion FCFA. The initiative is aligned with President Paul Biya’s vision of strengthening the energy sector and modernizing the country’s petroleum logistics. Cameroon is contributing 30 percent of the project’s funding through SNH and TRADEX. SNH is investing 23.5 million dollars (approximately 13 billion FCFA), while TRADEX is contributing 36.5 million dollars (over 20 billion FCFA).
Ariana Energy, the largest shareholder, will provide the remaining 70 percent. In terms of ownership, Ariana Energy holds 49 percent of the shares, TRADEX 31 percent, and SNH 20 percent. Together, the shares of SNH and TRADEX give Cameroon a 51 percent controlling stake in the project. Spanning 250 hectares of land, the CSTAR refinery is expected to meet international standards. The integrated facility will include a massive storage infrastructure with a capacity of between 250,000 to 300,000 cubic metres, expandable in future phases. The refinery itself will be capable of processing 30,000 barrels of crude oil per day. According to project officials, construction will take place in three phases, with the first phase scheduled to be completed and commissioned commercially by June 2028.
The project is seen as a long-term solution to Cameroon’s current challenges in the petroleum sector. With the shutdown of the National Oil Refining Company, SONARA, and the saturation of the Cameroon Petroleum Depot Company, SCDP, the country has been heavily reliant on imports. Cameroon currently produces 600,000 barrels of oil per day, yet it depends on the importation of approximately 1.9 million metric tons of petroleum products annually. The country only has a storage capacity of 275,500 metric tons, far below the estimated national need of 470,000 metric tons.
This gap means the country’s commercial stock can only sustain domestic demand for about 15 days, while safety reserves cover just 30 days—an unsustainable situation in the event of a supply crisis. By localizing petroleum product processing and storage, the CSTAR project aims to reduce Cameroon’s reliance on foreign imports by 30 percent. It is projected to help the state save around 750 million dollars (over 424 billion FCFA) annually on imports. Additionally, the refinery is expected to generate 250 million dollars (approximately 141 billion FCFA) in revenue from the export of marine fuel and other petroleum products. Its design allows for the local refining of Cameroonian crude oil into Euro V diesel, petrol, jet fuel, kerosene, asphalt, and other petrochemical derivatives.
Beyond its economic and energy impact, the CSTAR project holds promise for job creation, skills transfer, and regional development. In total, the project is expected to create more than 7,000 employment opportunities, 2,000 direct and 5,000 indirect. Moudiki emphasized that the project will not only offer employment but also facilitate the transfer of expertise to local engineers and technicians. She noted that Cameroon has the human capital required to achieve great industrial strides, and initiatives like CSTAR must unlock that potential. The financial model of the project reflects a strong business case, with an estimated gross annual revenue of 43.2 million dollars (around 24 billion FCFA) and net income projected at 37.2 million dollars (approximately 20.9 billion FCFA).
The project’s commercial debt is expected to be serviced over a seven-year period. According to officials, SNH and Ariana Energy will provide 40 percent of the capital, while the remaining 60 percent will be raised through the financial market with the support of BGFI Bank. Azzam Marlouf, Chairman of Ariana Energy, reaffirmed his company’s commitment to long-term investment in Cameroon. He commended the collaboration with SNH and TRADEX, emphasizing that the project will meet all international standards and deadlines. Marlouf pledged to ensure meaningful technology transfer and capacity-building among Cameroonians, with the aim of positioning Cameroon as an energy powerhouse in the Central African Economic and Monetary Community, CEMAC zone.
Kribi City Mayor Guy Emmanuel Sabikanda also expressed satisfaction, describing the project as a strong reflection of President Paul Biya’s foresight and dedication to industrializing the nation. He noted that the Kribi municipality stands to gain significantly from the presence of such a major infrastructure, particularly in terms of employment and local economic growth. Nathalie Moudiki reiterated that the CSTAR refinery is a bold step in line with President Biya’s ambition of seeing Cameroon produce what it consumes and consume what it produces.
She thanked the Head of State for his continued support of SNH’s ventures and praised the faith shown by international partners in Cameroon’s potential. With construction now officially underway, CSTAR is set to become a game-changing pillar in the country’s energy independence and economic transformation.
