Continental Focus, International Reach

VOG to Supply Gas to Planned Power Plant

Tuesday, July 30, 2019

The wholly owned subsidiary of Victoria Oil & Gas (VOG, Gaz du Cameroun (GDC), signed a non-binding term sheet with Aksa Enerji Uretim to supply Aksa Energy with up to 25 Mmsf/d of gas to Aksa Energy’s planned 150 MW power station, to be located in Bekoko, Douala, Cameroon.

The Term Sheet is subject to various conditions precedent, including government approvals and the signing of a Power Purchase Agreement by Aksa Energy with Eneo Cameroon, or Sonatrel (the Cameroon government owned manager of the national electricity network).

The key commercial terms between Aksa Energy and GDC include a gas price of $6.75 per mmbtu for a term of 25 years, plus an option to extend for an additional five years. It also includes a 70% take or pay component.

Aksa Energy, an independent power producer in Turkey, entered into a MoU with the government of Cameroon to develop a 150 MW power plant project in Douala, subject to receipt of the requisite approvals and licenses.

The location of the proposed power plant is expected to be near the Bekoko substation, near to GDC’s existing gas pipeline network.

GDC’s management has been working closely with Aksa Energy and ENEO to develop this exciting gas-to-power project, and GDC, Aksa Energy and ENEO gratefully acknowledge the support and guidance they have received from the Minister.