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REPUBLIC OF CAMEROON
Ministry of Economy and Finance

Committee for the follow up of Cameroon Extractive Industries Transparency Initiative (EITI) Reconciliation of the financial and physical flows as regards the Cameroon EITI for the year 2005

Short form report

March 2007

MINEFI – EITI Follow up Committee Short form report of financial and physical data reconciliations 2005SUMMARY
Pages

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GENERAL CONTEXT OF THE STUDY

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NATURE AND SCOPE OF THE WORK OF THE CONCILIATOR
2.1 Nature of works 2.2 Resources considered in EITI 2.3 Incomes considered for EITI 2.4 Production considered for EITI 2.5 Oil companies covered by EITI 2.6 The period covered by the study 2.7 Recording basis of the incomes

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RESPONSIBILITIES OF ENTITIES AND LIMITATIONSTO THE SCOPE OF THE
MISSION

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3.1 Responsibilities of covered entities 3.2 Responsibilities of the conciliator 3.3 Limitations of the scope of the mission

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SUCCINCT PRESENTATION OF THE OIL SECTOR IN CAMEROON
4.1 Natural hydrocarbon Reserves 4.1.1 4.1.2 Gas Oil

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4.2 Description of exploration research activities 4.2.1 4.2.2 Exploration Exploitation5

LEGAL, CONTRACTUAL, AND TAX SCOPE OF OIL EXPLORATION AND
PRODUCTION ACTIVITIES

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5.1 Legal scope 5.2 Contractual scope of exploration and exploitation activities 5.2.1 Calculation examples for the mining income (classical case)

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MINEFI – EITI Follow up Committee Short form report of financial and physical data reconciliations 2005

5.3 Overview of the tax systemapplicable to oil exploration and production activities 5.3.1 5.3.2 15

Legal scope of the oil tax system before adoption of the oil code 16 Specific tax system dispositions resulting from establishment 16

conventions

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PRINCIPLES OF RECORDING OF FINANCIAL FLOWS, PRESENTATION OF THE
FINANCIAL FLOWS BETWEEN THE NHC AND THE NATIONAL TREASURY

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6.1 Flows of financial datarelative to Oil activities 6.2 Principles of recording financial flows by the NHC and tne Public Treasury

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SUMMARY OF THE METHODOLOGY IMPLEMENTED TO CARRY OUT THE STUDY 19
7.1 Collection and conciliation of financial data 7.2 Currency used for the conciliation of the financial data 19 20

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PRESENTATION OF THE RECONCILIATION BETWEEN THE DECLARATIONS OF
OIL COMPANIES AND THOSE OFTHE STATE AND ITS COMPONENTS

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8.1 Reconciliation of financial flows 8.1.1

The result of the reconciliation of the financial flows declared made

by oil companies and the financial flows declared received by the State and its components, presents as follows: 8.1.2 22

Summary tables of the diffrences between the NHC and the Public 23

Treasury 8.1.3 Summarize table of thedifferences on the company tax declared

by the Taxes Headquarters and by Public Treasury 8.2 Aggregated physical data 8.2.1 8.2.2 8.2.3 Total Production Overview of the total production within the period Volume reconciliation between the NHC and oil companies

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8.2.3.1 SNH Production levels 8.2.3.2 Volume reconciliation between the NHC and oil companies: SNH Liftings 8.2.4 Volumereconciliation between the NHC and Sonara Refinery

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MINEFI – EITI Follow up Committee Short form report of financial and physical data reconciliations 2005

8.2.4

Reconciliation of the volumes of the NHC with the data of certified 28 28 28

financial statements Production volumes (Cameroon total) Liftings (SNH only)

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Comments of the conciliator
APPENDICES

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10.1

Accounting and financial definitions

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MINEFI – EITI Follow up Committee Short form report of financial and physical data reconciliations 2005

Committee for the follow up of Cameroon Extractive Industries Transparency Initiative

In execution of the mission of reconciliation of the financial and physical flows as regards the Cameroon EITI for the years 2001 to 2004...