Both the site civils and pipeline trenching, jointing, installation and reinstatement have been awarded to Cameroon civils contractors.

Cameroon - Logbaba

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Victoria Oil and Gas, through its wholly owned subsidiary company, Rodeo Development Limited, has an interest in and operates the Logbaba Gas and Condensate Field onshore Cameroon. Further to the Exploitation Licence awarded on the 29/4/11, the company commenced continuous gas and condensate production operations in July 2012.

Logbaba Licence Area

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The Logbaba Gas Field was discovered in 1955 by a French governmental entity, SEREPCA, which was later acquired by ELF. The discovery well, La-101 tested gas in sands of the Late Cretaceous Logbaba Formation. SEREPCA drilled three more wells on the Logbaba Gas Field between 1955 and 1957, La-102, -103, and -104. La-102 and -103 were tested, but La-104 was not tested in spite of the fact that it encountered a number of gas sands as the well was obstructed by a toolstring and drill pipe lost in the hole. SEREPCA was looking for oil and after encountering gas in LA-104 it did not drill anymore appraisal wells in Logbaba. The field was not developed because there was no market for the gas at the time. In 1999 the original four Logbaba wells were permanently abandoned by Total (which had inherited the Logbaba concession when it merged with ELF), after which it relinquished the license. Cameroon Pipe

 

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In 2009 and 2010, Gaz du Cameroun (formerly known as Rodeo Development Limited) drilled and completed two wells, La-105 and La-106. La-105 twinned the SEREPCA La-103 well, La-106 was a stepout well drilled into an unappraised part of Logbaba about 500 m north-east of the La-104 well location. Both of the new wells were drilled directionally from a drilling pad located over the centre of the field to minimise the environmental and social impacts of drilling in a populated area. La-105 tested at flow rates of up to 55 mmscf/d while La-106 tested at flow rates of up to 22 mmscf/d from the Logbaba formation. Both wells have been completed with 4½” tubing. As the wells are produced and the open producing intervals become depleted, additional, shallower sands will be opened with perforating guns run on wireline.

Victoria Oil and Gas has developed a local market for gas with customers including breweries, metal foundries, food processing plants and packaging facilities. Gas Sales Contracts have been signed throughout 2010-2013 with numerous industrial firms including some multinational firms.

The initial target markets for Logbaba natural gas are industrial customers in Douala and Bonaberi for:

  • Substitution of Heavy Fuel Oil and Waste Oil used in raising heat with natural gas;
  • Power generation at customer sites using natural gas;
  • Centralised near site power generation with local distribution, in compliance with current electricity legislation and regulations, on industrial estates and at the Douala port.

A low-pressure High Density Polyethylene sales gas pipeline network is being installed in four phases to supply customers in Central Douala, South East Douala and South West Douala. The gas is priced at $16 per MMbtu (approximately $16/mcf or $96 per boe) and has a high heating value of 1060 btu/scf. (see Chart 2)

Chart 2: Phased Pipeline Development Plan (does not include Bonaberri)

Three Phased Pipeline Development Plan

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The total gas distribution network will be approximately 44 km in length comprising pipe diameters between 400mm, and 63 mm with a design pressure of 7 barg and a normal operating pressure of 5.5 barg. The gas distribution network is being constructed in unpaved ground, black top highway and land adjacent to the Douala rail network. Horizontal boring wells, where required, are planned to avoid disruption to trains, traffic and other utilities such as buried electricity cables, fiber optic cables, water and drains.

The custody transfer point will be immediately downstream of a Pressure Reduction, Metering and further Condensate Removal facility located within the customer’s premises with a pressure range 200 – 500 mbarg.

In July 2012, the Company announced the commencement of continuous gas and condensate production operations at Logbaba. The Company’s first three customers were taking delivery of gas in sufficient volume to allow the production facilities to operate 24 hours a day, delivering gas in full compliance with specification.

 

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Benefits to Cameroon

There are a number of significant direct and indirect benefits that will be delivered by the Logbaba Gas Field development.

These include:

  • The creation of 300 jobs during construction;
  • The creation of 100 full time jobs in RDL in order to support the safe production and distribution of gas within the city of Douala and condensate to the Sonara refinery at Limbe;
  • Further industrial development and investment in Douala due to reliable energy supplies which will allow growth unconstrained by energy supplies;
  • Reducing the pressure on the National Electricity Grid and therefore make Cameroon more attractive for inward investment;
  • Environmental benefits from the provision of clean energy by substitution of Heavy Fuel Oil (HFO) and Waste Oil with gas;
  • Technology transfer to local civils contractors in the installation of high density polyethylene (HDPE) pipe and training of Cameroonian engineers in processing plant and pipeline operations and maintenance;
  • Manufacturing opportunities for local plastic pipe manufacturers in production of HDPE pipe and fittings;
  • In addition to direct employment provided by RDL, additional jobs will be created for large and small local companies supporting RDL’s project;
Photograph of arrival

In order to bring the project to its current state of readiness, we have worked with a large number of Ministries, Regional and Local Government, other state institutions and utilities in Douala. The support and immediate engagement of these organisations and particular individuals who have championed this project have helped us to achieve an ambitious schedule to date.

We have also appreciated the full cooperation of the local community during the drilling and testing phases.

We would like to thank our Cameroon partners SNH and the Ministry of Industry, Mines and Technology (MINIMIDT) for their support along the way and the other institutions and individuals directly and indirectly involved in the project.