(Alliance News) - Victoria Oil & Gas PLC on Monday announced a term sheet to supply gas to Aksa Enerji Uretim SA's planned power station in Douala, Cameroon.
The term sheet is subject to various conditions, Victoria said, including government approval and the signing of a power purchase agreement by Aksa with Cameroon's national electricity network.
The gas price for Victoria's deal will be USD6.75 per one million British thermal unit. The deal lasts for 25 years, with an option for another five years.
Aksa Energy is one of Turkey's largest independent power companies. It is looking to build a 150-megawatt power station in Douala, though still needs various approvals and licences.
Victoria Chief Executive Ahmet Dik said: "Considerable progress has been made in our gas-to-power strategy, as evidenced by the term sheet signed with Aksa Energy, one of the largest global independent power producers. Upon commencement, which is planned for late 2020, production levels would dwarf the current level of gas sales and propel Victoria into a profitable trajectory of growth which has always been our aim.
"Much work and effort by all stakeholders has gone into progressing this project and I am confident the additional power expected to be generated will be highly beneficial for the Cameroonian people and the economy as Douala continues to attract industry into the busy port town," Dik continued.
"We are delighted to have begun a partnership with such a high-profile, professional and reputable company such as Aksa Energy which has a depth of experience in installing and operating successful gas facilities across Africa. Additionally, I would like to thank the government of Cameroon for their support of this project, and we look forward to working closely with them through to the delivery of first gas and power."
Victoria Oil shares were 5.5% higher on Monday in London at 14.58 pence each.
