VOG Faces Hurdles in Cameroon

Victoria Oil & Gas (VOG), the UK-based Cameroon gas producer and marketer, said April 13 its production there increased by 10.7% year on year in 1Q2017 to 14.6mn ft³/d, of which sales were 12.8mn ft³/d, up 2%, and it also reported progress in drilling two new Logbaba gas wells.

But it acknowledged that a key two-year gas sales contract with Cameroon utility Eneo expires April 22 2017: “Negotiations are well advanced …. and the board expects a renewal of the contracts for the supply of gas to the Logbaba and Bassa power stations in [Cameroon's port city of] Douala.”

Further, it said that a previously announced farm-in agreement with Bowleven, whereby VOG will acquire on completion an 80% working interest in the 2,237 sq.km Bomono license, adjacent to VOG's Logbaba field, remains subject to government approval. But Bowleven’s new board, now with directors backing Monaco-based private equity fund Crown Ocean Capital, said last month it too may exercise its right to revise or revoke the farm-in.

Bowleven's latest published statement March 28 about the farm-out said: "Completion is subject to a number of conditions as detailed in the deal announcement of March 6 2017." 

Mark Smedley