Oil is one of the major sources of energy today and one of those activities whose benefits cut across political, economic, social and cultural realm. The benefits of oil exploitation and production depend immensely on how it is managed. The principal objective of this research is to undertake a critical analysis of the effectiveness of petroleum contracts and to improve on the principal laws that crafts and regulates such contracts in Cameroon. In spite of the contributions of oil to the national wealth of the country, it has increase environmental degradation and the exploiting communities are the most affected and they turn to benefits very little from the activities of oil exploitation. From this conclusion, the study puts forth a set of recommendations but focusing on the revision of the existing legal initiatives especially the petroleum code that regulates oil exploitation and contracts in Cameroon.