VOG Still Without Key Cameroon Client
AIM-listed Victoria Oil and Gas (VOG), in a 2Q operations update on August 17, said it has been unable to persuade local power generator Eneo to resume its gas offtake, suspended in December 2017.
Because sales to Eneo did not restart in 2Q 2018, gas consumption from VOC subsidiary Gaz du Cameroun's 57% stake in the Logbaba gas project in Douala "are at similar levels to those reported in 1Q 2018."
VOG net overall gas sales - all in Cameroon - fell from 7.94mn ft3/d during 4Q2017, to 3.5mn ft3/d in 1Q2018 and 3.3mn ft3/d in 2Q2018; those sales included 2.5mn ft3/d sold to Eneo in 4Q2017 but nothing in 1H 2018.
VOG said it remains confident that all parties are actively engaged in talks to restart sales to Eneo, and that shortfalls in Cameroon's power supply continue, with hydro-power not meeting current demand; some of its existing small industrial customers in the port city of Douala are considering developing their own small-scale gas-fired power generation to cope with brownouts.
During 2Q, VOG also announced a 52% increase to remaining certified (gross) 2P gas reserves at Logbaba from 203bn to 309bn ft3. and also signed an agreement with Turkey's Naturelgaz, Europe's largest CNG supplier, whereby both firms will look at ways to develop from scratch Cameroon's market for compressed natural gas (CNG) as a fuel for vehicles and industry.