Victoria Oil signs pacts to expand gas volumes in Cameroon

Victoria oil Victoria Oil has signed agreements for its operating subsidiary in Cameroon to expand gas production volumes. (Image source: Victoria OIl)UK-based Victoria Oil and Gas has signed key customer agreements for its operating subsidiary Gaz du Cameroun (GDC) to expand gas production volumes

The oil and gas exploration and development company unveiled three new gas agreements for its local subsidiary in Douala in Cameroon, and said it had received a first installment of payments from partner RSM Production

The company said that the collaboration agreement has been signed with Cameroon’s electric utility AES-Sonel, under the terms of which AES's heavy and light fuel oil power generation stations will be replaced with gas-fired generation.

As part of the deal, GDC will supply temporary gas units with a combined capacity of 45MW, and the first stage of the deal is expected to start during the second quarter of 2014 with anticipated gas consumption rates in the range of 2.6 million to 5.9 million square cubic feet of gas per day.

"Supplying the major domestic electricity utility with gas to drive their oil-fired generators will be a big step forward for us," said chairman Kevin Foo.

"With most electricity coming from hydro-electric sources in Cameroon, consistent power supply during the dry season is an issue.”

GDC has also entered into an agreement with cement-manufacturing company Dangote to supply thermal gas. It will supply 0.4-0.5 million cubic feet per day, with connection anticipated in the second quarter.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?