Update on Logbaba Participation Agreement and Bomono Project
SNH Participation in Logbaba
Victoria Oil & Gas is pleased to announce that Societe Nationale des Hydrocarbures (“SNH”), RSM Production Company (“RSM”) and Gaz du Cameroun S.A. (“GDC”) have agreed and signed a Participation Agreement that will govern the relationship of the parties going forward on the Logbaba Project (the “Project”).
Project participation, prior to the Participation Agreement, was split GDC 60% and RSM 40%. The Participation Agreement formalises the participation of SNH, acting on behalf of the Republic of Cameroon, alongside GDC and RSM. The Participation Agreement follows SNH exercising its right to participate in 5% of the Project and, accordingly, Project participation as a result of the execution of the Participation Agreement will be split GDC 57%, RSM 38% and SNH 5%.
SNH is entitled to a 5% share of revenues from the sale of all hydrocarbons from the Project and is also liable for 5% of exploitation costs of the Project. The parties have agreed, in accordance with the Participation Agreement, for SNH to conduct an audit of the exploitation costs for the Project to determine the Participation settlement.
Victoria Oil & Gas Plc today announces that it has exercised its option to extend the termination date of the farm-out agreement (“Farm-out”) with Bowleven Plc (“Bowleven”) relating to the Bomono production sharing contract. The termination date has been extended to 28 September 2017. Bowleven and VOG wish to pursue the Farm-out and are working with the Government of Cameroon to progress the Bomono project.
Full terms of the Farm-out can be found on the RNS announcement of 6th March 2017 made by Bowleven and VOG.
Ahmet Dik, CEO, said; “I am delighted that we can now formally share our energy success story on a commercial basis with the Cameroon Government. The Cameroon Government has supported and set the conditions by which GDC has been able to operate and invest in excess of US$250m, and encouraged new investors into Douala to establish their businesses. Our team looks forward to building on the excellent working relationship we have with the SNH team and I thank and extend my gratitude to Mr Adolphe Moudiki, Executive General Manager of SNH for the contribution SNH has made to the oil and gas sector in Cameroon.