As part of its mission to strengthen national energy infrastructure in Cameroon, the National Hydrocarbons Corporation (SNH) has embarked on an ambitious plan to construct a new oil refinery five kilometres from the deep-water port of Kribi. The refinery—designed to produce 30,000 barrels per day, approximately 1.5 million tons per year—represents a total investment of USD 621.96 million. To execute this landmark project, SNH has partnered with Ariana Energies through a Dubai-based special purpose vehicle (SPV), CSTAR Refinery Project Management LLC-FZ.
The signing of the Framework Agreement and Arrangement Mandate between SNH and BGFIBANK Cameroun S.A. formalises the financing partnership for the CSTAR Refinery Project.
BGFIBANK Cameroun Appointed Arranger and Agent Bank
BGFIBANK Cameroon has been appointed Arranger and Agent Bank, tasked with structuring the overall financing plan for SNH’s participation—USD 210 million (equivalent to 118.2 billion FCFA). The bank will also provide financial advisory services to SNH and coordinate the entire financing mechanism.
The CEO of BGFIBANK Cameroon reaffirmed the bank’s commitment to fulfil this responsibility “with professionalism and rigor,” leveraging its expertise in structured finance, syndicated loans, and large-scale infrastructure projects in the water, energy, and transport sectors.
Under the mandate, BGFIBANK commits to raising the required funds within 90 days, backed by a comprehensive guarantee structure. The bank emphasised that this initiative reinforces its role as a strategic financial partner to the State and its dedication to supporting transformative projects that stimulate sustainable growth. For BGFIBANK’s leadership, the project “symbolises confidence in our collective capacity to build, right here in Cameroon, the foundations of inclusive and resilient development.”
SNH’s Strategic Vision
Speaking on behalf of the CEO of SNH, Nathalie Moudiki—Chairlady of CSTAR—highlighted the importance of the agreement: “With the signing of this Framework Agreement, SNH is taking another major step toward implementing this highly strategic project with ambitious yet realistic objectives.” She emphasised BGFIBANK’s experience, credibility, and financial network as key contributors to the project’s success. The mandate granted to BGFIBANK illustrates the determination of SNH’s leadership to advance priority development initiatives aligned with the vision of the President of the Republic, H.E. Paul Biya.
A Catalyst for National Growth
The CSTAR Refinery Project aligns with national priorities and offers significant economic benefits:
- Compensates for the loss of local refining capacity following the 2019 SONARA fire
- Reduces Cameroon’s petroleum imports by up to 30%
- Generates approximately USD 250 million annually from marine and petrochemical exports
- Contributes an additional 0.94% to national GDP
- Supports local capacity building and the development of a robust energy-sector supply chain in Central Africa
The refinery is expected to begin production in June 2028, with the foundation stone already laid on July 17. A TANKFarm storage facility, financed by SNH, is integrated into the project.
CSTAR Project Governance Architecture
The project is managed through an institutional partnership between SNH, TRADEX, ARIANA ENERGY, and the RCG Consortium, structured around four key entities:
- SPV (CSTAR Tank Farm Project Management LLC)—established April 25, 2025, in Dubai; majority Cameroonian ownership (51% shared between SNH: 20% and TRADEX: 31%), with Ariana Energy owning 49%.
- Joint Management Committee (JMC)—12-member body ensuring strategic and technical oversight.
- Joint Operating Company (JOC)—Cameroonian-law entity responsible for terminal operations and maintenance.
- Handling Company—dedicated to managing commercial flows of petroleum products.
Financing Structure
- 30% Equity: USD 60 million, funded by Cameroonian partners
- SNH: USD 23.5 million
- TRADEX: USD 36.5 million (via SNH’s bond financing)
- 70% Commercial Debt: Raised by Ariana Energy
Equity Disbursements:
- USD 5 million → FEED (Front End Engineering Design) studies
- USD 30 million → Upon technical validation of FEED
- Remaining balance → At financial close to launch EPCIC works, awarded to the RCG Consortium
