VOG Expands Gas Sales in Cameroon

Victoria Oil & Gas (VOG) updated the company’s progress in Cameroon since it began commercial production of natural gas from its Logbaba concession in December. Since commissioning the initial 4-km section of pipeline and making its first delivery of gas to the Magzi Industrial Estate, the company has seen its momentum continue and the Logbaba Project is now substantially de-risked.

VOG now has continuous production operations, delivering gas in full compliance with specification and a considerable period of production ramp-up to look forward to.

The company’s chairman, Kevin Foo, reported that the company recently signed another two thermal gas sales agreements bringing the current total to 17 customers. The company anticipates aggregate thermal gas sales of approximately 2.5 Mmscf/d by the end of the year.

VOG has taken the decision to re-schedule its pipeline expansion to the west and east of central Douala until sufficient funding from a bank or financial institution is in place for the development and to minimize further equity funding.

Further to the above, Foo said “We have focused on both thermal and local on-site power generation around the existing Phase 1 pipeline. I am pleased to say that initial power discussions with customers around the pipeline have been very well received. We have delivered 13 Power Proposals to customers detailing pricing and solutions for optimized delivery of power. These offers constitute a total of 29 MW which is equivalent to 5.5 Mmscf/d of gas at the peak. Last week, two proposals progressed to signed LOIs. We anticipate many more in the coming weeks. In total, we anticipate total production of 2.5 Mmscf/d of gas for on-site power generation by the end of the year.”

VOG is offering customers two distinct gas supply alternatives for their own localized generators at $16 per mmbtu or a complete power solution whereby RDL, its subsidiary, will own the plant, sell power, and provide operations and maintenance contracts to the customer.