Victoria Oil & Gas’s wholly owned subsidiary Gaz du Cameroun S.A. (GDC) has signed a legally binding term sheet with ENEO Cameroon S.A (ENEO), Cameroon's integrated utility Company, to supply gas to two power stations located in the city of Douala (The Agreement).
GDC has also signed a legally binding term sheet with ENEO and Altaaqa Alternative Solutions Projects DWC-LLC (Altaaqa) a United Arab Emirates equipment supply company. Altaaqa will provide power generation equipment and has responsibility for importing and installing the Gensets at the Douala power stations. GDC will work with Altaaqa to make the initial gas connections.
The term sheets have been signed to enable the project to be expedited to meet ENEO requirements and it is expected that these will be replaced by full contracts in early 2015.
The Agreement with ENEO is a major gas supply contract for VOG in terms of scale and profitability with guaranteed minimum take or pay gas consumption at a fixed US$9/mmbtu over the 2 year contract term.