Glencore, Afex sign exploration deal with Cameroon

YAOUNDE, April 10 (Reuters) - Swiss-based Glencore [GLEN.UL] and Afex Global Limited signed a deal with Cameroon's state oil company on Thursday to explore for oil in the Matanda block of the central African country's in the Douala-Kribi/Campo basin.

State-owned National Hydrocarbons Corporation (SNH) said in a statement the block covered 1,187 sq. km (458 sq. miles) in between the Wouri estuary and the neighbouring onshore area to the south and west of Douala, central Africa's biggest port.

Cameroon is central Africa's biggest economy and lies on the oil-rich Gulf of Guinea, although its crude oil output has virtually halved since its 1980s peak to a modest 90,000 barrels per day.

"The contract signed this day will reactivate exploration activities on this part of the Cameroon mining domain, which for over a decade registered no activity, but whose potential in gas and condensates was proven in two wells drilled by Gulf Oil Corporation in the early 80s," SNH said in the statement.

The contract, which SNH said stipulated the research Glencore's subsidiary Glencore Exploration Limited and Afex should conduct on the Matanda block, was worth $38 million and was renewable, SNH said.

Afex Global Limited is an independent company which operates in Mali and Angola, the SNH said.

(Reporting by Tansa Musa; writing by Alistair Thomson; Editing by Marguerita Choy)