Oil and gas exploration and production firm New Age has signed a letter of intent (LOI) with Victoria Oil & Gas (VOG).

The LOI covers the supply of gas from the Etinde gas and condensate field in offshore Cameroon.

Related Company Profiles

View all

New Age serves as the operator of the Etinde gas field, holding 37.5% interest. Other partners include LUKOIL (37.5%) and Bowleven (25%).

Under the LOI, New Age will supply processed gas to Gaz du Cameroun (GDC), a wholly-owned subsidiary of Victoria Oil & Gas in Limbe, based in western Cameroon.

GDC will then transport the gas received from Etinde field to Douala.

Bowleven CEO Eli Chahin 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 licence.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“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. We look forward to updating the market on future progress as appropriate.”

The gas sale agreement would be valid for 20 years. New Age will supply a minimum of 25 million standard cubic feet per day (mmscf) of gas to GDC. After the first three years, this will increase to a minimum of 30mmscf a day.

Bowleven said that the LOI will be effective until a gas sales agreement is signed. It expects this to take place by March 2021.

The deal remains subject to a Final Investment Decision (FID). This covers the development of the Etinde gas and condensate field.

In March 2015, Bowleven sold a 40% stake in its Etinde permit in a deal worth approximately $250m. It sold a 30% stake to Lukoil and a further 10% to NewAge.

Bowleven retained a 25% interest after other farm-out transactions, transferring the Etinde field operatorship to New Age.