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Yaoundé - 21 June 2021 -
Energy

Electric utility ENEO settles commercial dispute with Gaz du Cameroun with a XAF2.7 bln settlement

Electric utility ENEO settles commercial dispute with Gaz du Cameroun with a XAF2.7 bln settlement
  • Comments   -   Tuesday, 08 June 2021 13:30

(Business in Cameroon) - Last June 4, Victoria Oil & Gas (VOG) announced that its subsidiary Gaz du Cameroun received a XAF2.7 billion payment as settlement for the commercial dispute between the subsidiary and Cameroonian electric utility ENEO.

The dispute came to public attention on July 3, 2020, with the release issued by VOG announcing the cancelation of the supply contract binding ENEO and Gaz du Cameroun. In the framework of that contract, VOG’s subsidiary was to supply gas to ENEO for the operations of the 50MW Logbaba power plant.

VOG later threatened to take ENEO to court if the electric utility company did not pay the XAF9.3 billion of outstanding debts at the end of June 2020. Meanwhile, ENEO was claiming that Gaz du Cameroun had not supplied it for most of the stated period.

 “It should first be noted that this dispute is not about invoices, but about the conditions for gas supply resumption and electricity production at the Logbaba site. This is what the dispute is all about,” Eric Mansuy explained during an interview with Business in Cameroon.

Let me tell you, generally, in the electricity sector, disputes are settled amicably, with public authorities’ assistance usually. Gaz du Cameroun’s approach, in this case, is in stark contrast with the usual practices because we must all ensure that the sector is developed,” said Eric Mansuy. The CEO has succeeded in bringing Gaz du Cameroun’s management to the negotiating table.

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