Yaounde, Cameroon Africa(Cameroon News) – Victoria Oil & Gas is gearing up for its first gas sales.
Oil and gas explorer Victoria Oil and Gas (VOG) said in an communication that it has sent across to its shareholders that it would be flagging off its Logbaba gas project, Cameroon, without any more delays and schedules to get the plant ready for its first gas sales by the end of 2011.
The company which trades in AIM stated that it has entered into around 11 deals for gas sales which it has already inked and undertaken, with an additional 10 which are still in the pipeline but have been mutually agreed upon, subject to signature sanction.
All contracts will be inked at a price of $16 per thousand cubic feet of gas, and would be valid for five years from the date of first gas sales.
Victoria Oil & Gas has committed that it would be starting its first gas sales by the start of the fourth quarter.
Oil and gas Plant
At the close of April, the company, which has projects in both Africa and the Former Soviet Union, got the good news that it had been expecting from a long time that it had been provided an exploitation license for the Logbaba Gas Plant which is valid for 25 years with the alternative to increase its validity for 10 more years in what the company chose to refer to as a “huge milestone” for project completion and first gas sales.
The decree for the gas condensate field in Douala has indicated the company’s fully-owned Cameroonian subsidiary, Rodeo Development Limited as the operator.
“With the award of the Logbaba exploitation decree, the transformation of our company begins. We shall not stop there. I am very positive about future opportunities,” chairman Kevin Foo announced.
According to the mandates of the Logbaba concession agreement signed in 2001,the state owned oil and gas company SNH has fulfilled its right to take part in the concession and will add to its share of development costs.
“SNH’s participation in Logbaba is very positive news. Their direct involvement will help us to maximise the full potential of the project both technically and in developing the market and infrastructure,” Foo added.
Four major activities in the execution of the Logbaba gas field development are yet to be completed, the company said; once again starting work on its wells La-105 and La-106, including installation and commission of the leased process plant, trenching, jointing, installation and commission of the gas pipeline network and arrangements on customers sites for installation of pressure reduction and metering stations.
As far as other projects of the company are concerned, the company’s operations on the West Medvezhye licence block in Russia are proceeding as per schedule and within stipulated budget.
Under the work schedule set for this year, Victoria Oil & Gas is going through other alternatives that they had made for the commercialization of the huge prospective resources and exploiting the well 103 discovery, it said.
About Victoria Oil & Gas
Victoria Oil & Gas Company is an oil and gas exploration company that operated out of Edinburgh and a UK registered company. It has got several projects in Central and West Africa including the Logbaba Gas condensate plant in Cameroon and the West Medvezhye license block in Russia.
After a very long wait, they secured the exploitation license for the Logbaba gas Plant which is supposed to provide gas to industrial and business consumers in Cameroon. Victoria Oil & Gas Company has also announced successful drilling results in two of its oil wells in Cameroon.
