"After going through the exploration phase in the permit since 1999, we shall soon be embarking on the development and production phase," EurOil chairman Nfon Tabetando told reporters in Yaounde at a news briefing.

He declined to provide a production target for the field, but said tests carried out at the permit site had resulted in daily output of 14,576 barrels of liquid hydrocarbons and 50 million cubic feet of natural gas. Tabetando said development of the project is expected to cost as much as $1 billion.

Bowleven is the operator of the Etinde permit area and holds a 75 percent stake through its wholly-owned local unit EurOil.

Cameroon is one of sub-Saharan Africa's oldest oil producers and is struggling to maintain output levels.

Production so far this year has averaged a little over 60,000 barrels per day, down from a peak of 185,000 bpd hit in the mid-1980s.

The government has said new developments could push production back to 100,000 bpd by next year, though it has offered few details on how this might happen.