Continental Focus, International Reach

VOG Resumes Deliveries to Eneo

Tuesday, December 25, 2018

In Cameroon, natural gas producer Victoria Oil & Gas (VOG) resumed natural gas deliveries to electricity producer and distributor Eneo. The resumption of deliveries follows the two coming together in a new agreement with binding conditions.

Eneo suspended its gas purchases from VOG on behalf of its Logbada thermal power plant in January 2018 because of a debt of nearly $200 million which undermined its finances.

Under the terms of the new agreement, new deliveries will initially take place over a period of three years. Prices are lower than those of the previous contract. They should vary between $6.75 and $6.95 per MMBtu. On average, VOG will deliver 6.1 Mmcf/d with a minimum base of 4.9 Mmcf/d using the Take or Pay mechanism.