Victoria Oil & Gas PLC GDC-ENEO Pipeline Installation and Genset Update (8481G)
March 09 2015 - 3:01AM
UK Regulatory
TIDMVOG
RNS Number : 8481G
Victoria Oil & Gas PLC
09 March 2015
Victoria Oil & Gas PLC (AIM: VOG)
9 March 2015
Victoria Oil & Gas Plc
("VOG" or "the Company")
GDC-ENEO Pipeline Installation and Genset Update, Cameroon
-- Gaz du Cameroun completes all pipeline and metering
installation to Bassa and Logbaba power plants ahead of schedule,
meeting all contractual obligations
-- Pipeline now "gassed up" and completion certificates issued
-- Twenty two Gensets with a combined capacity of 28.6MW arrived
at Douala port and cleared customs - sixteen of these (20.8 MW) now
onsite at Bassa power station and six (7.8MW) at Logbaba power
station
-- Seventeen Gensets (22.1 MW) scheduled to arrive in Douala on March 15 2015
-- Target date for commissioning of both plants (50MW) remains end March 2015
Victoria Oil & Gas Plc announces that Gaz du Cameroun S.A.
("GDC"), its wholly owned subsidiary, has issued completion
certificates to ENEO Cameroon S.A. ("ENEO"), Cameroon's power
utility company, for all pipeline construction work and pressure
reduction and metering stations ("PRMS") at both the Logbaba and
Bassa power stations located in the port-city of Douala,
Cameroon.
The work has been completed ahead of the scheduled 15 March 2015
target date and GDC is ready to connect to the gas-fired
electricity generations sets ("Gensets") that are being installed
by equipment partner, Altaaqa Alternative Solutions Projects
DWC-LLC ("Altaaqa").
Approximately 1.4km of 400mm diameter pipeline was connected
from the Magzi - Bassa valve station, of which 1.3km was open
trenching and 100m horizontal directional drilling. Traffic
management was the most challenging aspect of this work as the
Logbaba road forms part of the main arterial route from Logbaba
into the city of Douala. The two PRMS units, each weighing 5
tonnes, were supplied, assembled and tested by ELSTER UK, while all
special components and instrumentation were engineered from ELSTER
Germany.
The pipeline pressure tests, consisting of hydrostatic tests
(10.5 bar for 2 hours) and pneumatic tests (7 bar for 5 days) were
successfully completed and certified by Veritas. The pipeline is
now "gassed up" and ready for delivery of gas. The completion of
these milestones confirms that GDC has met all of its contractual
responsibilities under the Construction Term Sheet signed by GDC
and ENEO on 29 December 2014.
Twenty two Gensets with a combined net capacity of 28.6MW for
the project have arrived and been cleared through Cameroon Customs
by Altaaqa and ENEO at Douala Port. Sixteen of these Gensets (20.8
MW) are now onsite at the Bassa power station and six units (7.8
MW) at the Logbaba power station for installation by Altaaqa. The
remaining seventeen Gensets (22.1 MW), are scheduled to arrive in
Douala on 15 March 2015 and will be installed at Logbaba station.
Target completion date for installation and commissioning of the
total 50MW remains the end of March 2015.
Kevin Foo, Executive Chairman, said: "I am very pleased to
announce GDC has completed construction of the gas pipelines and
metering plant to the Logbaba and Bassa Power Stations, ahead of
schedule. This is a significant milestone for us and represents the
final step prior to actual delivery of gas to the power stations. I
thank every member of our team who contributed to this effort. We
look forward to the installation of the Gensets by Altaaqa and
being online by the end of the month."
For further information, please visit www.victoriaoilandgas.com
or contact:
Victoria Oil & Gas Plc
Kevin Foo / Laurence Read Tel: +44 (0) 20 7921 8820
Numis Securities
John Prior / Ben Stoop Tel: +44 (0) 207 260 1000
Strand Hanson Limited
Angela Hallett / Stuart Faulkner Tel: +44 (0) 20 7409 3494
Tavistock Communications
Jos Simson / Edward Portman/ Nuala Gallagher Tel: +44 (0) 20
7920 3150
Notes to Editors
About Victoria Oil & Gas Plc
Victoria Oil & Gas (VOG.L) is a gas utility company with
operations in the industrial port city of Douala in Cameroon, which
is the business hub to Central Africa.
The Company's subsidiary, Gaz du Cameroun S.A. ("GDC"), supplies
cost effective, clean and reliable gas to industries in the Douala
region from its onshore Logbaba Gas Project. Industrial customers
are primarily supplied with gas through a 31.3km pipeline network
built by GDC in Douala. GDC products currently include thermal gas,
gas condensate and gas for electricity generation. GDC gas is
attractive to customers due to its reliability, price
competitiveness, low hydrocarbon emissions (compared to Heavy Fuel
Oil) and adaptability to meet varied power requirement needs.
The Company generates cash flow from the Logbaba Project which
is 60% owned and managed by GDC, with RSM Production Corporation,
an affiliate of Grynberg Petroleum Company of Denver, Colorado
holding a 40% participating interest.
VOG also holds 100% of the West Medvezhye oil and gas
exploration project near Nadym, Russia. The field has C1 plus C2
reserves of 14.4mmboe (under the Russian resource classification
system, analogous to proven and probable reserves under Western
conventions) in addition to best estimate prospective resources of
1.4bboe.
Cameroon Energy Market
Cameroon is a stable African country that is host to a
developing economy serving most of Central Africa with goods and
services. A power deficit remains a major hindrance to Cameroon's
economic expansion. The power grid is reliant on hydroelectric dams
to supply 75% of power and the shortfall is made up from heavy fuel
oil and gas. Hydroelectric dams are highly seasonal, with stream
rates significantly varying from 6,000m(3) per second in the wet
season to 50m(3) per second in the dry season. As with many hydro
electrical systems transmission loss is also a constant issue when
balancing power loads across distances to different consuming
regions. The port-city of Douala is the major industrial zone
within Cameroon and it requires high levels of consistently
delivered grid power all year round. Currently Cameroon's energy
demand is growing at 7% annually and gas is seen as a key element
to Cameroons national energy strategy.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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