Continental Focus, International Reach

VOG Resumes Supplies to ENEO

Tuesday, January 22, 2019

Victoria Oil & Gas (VOG) resumed gas supply to Cameroon’s 30-MW Logbaba Power Station in late-December. Gas supply and power distribution commenced shortly thereafter. Since the resumption of the contract with ENEO in late December, ENEO consumption levels have doubled from 15 MW to the full 30 MW at Logbaba as the equipment has been recommissioned.

ENEO gas consumption has recently exceeded take or pay levels of 4.88 Mmscf/d.

The term sheet with ENEO sets out a three-year contract duration with peak delivery of 6.1 Mmscf/d to be made available to the Logbaba station on an 80% minimum Take or Pay basis throughout the year, which equates to a minimum average additional gas supply of 4.88 Mmscf/d. This differs from the previous contract, which contained a seasonal minimum take or pay element of 90% during the January to June dry season and 30% during the wet season July to December. The initial gas sale price of $6.75 per MMBtu will increase over the three-year term of the agreement by $0.10/MMBtu on each anniversary of the effective date of the agreement.

While gas supply for grid power to ENEO and to others will always be a key strategy of VOG, the Board, as previously announced, is focused on the importance on the diversification of the customer base to reduce dependence on any single customer.