New Age looking to seal the deal for Etinde gas supply with Victoria

Oil and gas company New Age and Victoria Oil & Gas have signed a non-binding Letter of Intent (LOI) for the supply of gas from the Etinde field, offshore Cameroon.

The Etinde permit map; Source: New Age

The Etinde block is operated by New Age with a 37.5% working interest. Bowleven and Lukoil are partners with a 25% and 37.5% working interest, respectively

Bowleven said on Wednesday that, under the terms of the LOI, Victoria and New Age would seek to enter into a gas supply agreement (GSA). The LOI envisages that New Age will supply processed gas to Gaz du Cameroun S.A. (GDC), a subsidiary of Victoria Oil & Gas, at Limbe. GDC would then transport the gas to Douala.

The LOI anticipates that the GSA would be for a period of 20 years and would see New Age supply a minimum of 25mmscf per day of gas to GDC for the first three years, increasing to a minimum of 30 mmscf per day.

The LOI remains in force until the earlier of the signature of a GSA or March 31, 2021. Ultimately, finalization of the proposed GSA terms and conditions is directly linked to the Final Investment Decision (FID) in relation to the Etinde field development project.

Eli Chahin, Chief Executive Officer of Bowleven plc, said: “As we work towards making a final investment decision on Etinde this year, today’s announcement by VOG is a positive step towards reconfirming the commerciality of the license. The agreement is also positive for Cameroon, as it will see gas delivered to independent power suppliers in the country, and for our stakeholders, as it demonstrates the high demand for natural gas in the region.”

The Etinde Permit (former Block 7) lies in shallow water in the Rio del Rey Basin, offshore Cameroon, and comprises four proven reservoir intervals within the Pliocene and Miocene formations.

Following the successful 2018 appraisal campaign, the joint venture has moved the Etinde project to a development planning phase. Several development screening concept studies are now underway to optimize the development of the Etinde field.

According to information on New Age’s website, the Final Investment Decision is expected by early 2020, with first production envisaged in 2022.

Conceptual field development scenario; Source: New Age

Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Also, if you’re interested in showcasing your company, product, or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit.

Share this article

Follow Offshore Energy Today

Events>

<< Feb 2020 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 1

Offshore Energy Exhibition and Conference (OEEC) 2020

Offshore Energy addresses the technical, operational and commercial challenges associated with future sector growth.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

OWI APAC 2020

Over the two-day conference, 30 expert speakers will share exclusive insight to help drive well work efficiencies through innovative…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply