(Business in Cameroon) - British oil and gas operator Victoria Oil & Gas (VOG), who announced in March 2017 having concluded a farm-out with its counterpart and fellow British Bowleven, with a view to entering into the Bomono gas project in the onshore Douala basin, has exercised its option to extend the termination date of said agreement, the company just announced to investors. According to VOG, the deadline now runs until 28 September 2017, and should allow discussions underway with the Cameroonian government to "move forward". Indeed, only a few days after the announcement of the conclusion of the agreement between the two British oil and gas operators on the Bomono license, the national oil company (Société Nationale des Hydrocarbures - SNH), the arm of the Cameroonian government in oil and gas operations, raised reservations.
"SNH informs the public that the State of Cameroon, owner of the gas resources in question, has neither been informed about this agreement in the usual way provided in oil contracts, nor authorised such an agreement, as required by the texts. Accordingly, the information published by the company Bowleven concerning the gas resources of Bomono which, in the opinion of SNH, requires additional research work to justify sustainable commercial exploitation, is erroneous and only commits this company alone", the Cameroonian public company made known in an official communiqué.
As a reminder, according to the above-mentioned agreement, VOG holds 80% of the assets on the Bomono license, through its subsidiary GDC Bomono, against 20% for EurOil (partner of Bowleven), who retains the status of operator. The objective of the farm-out agreement, Bowleven highlighted, is to develop, in the short term, the potential of Bomono (which covers an area of 2,328km²), in commercialising more gas and in developing greater downstream activities in the zone.