Perenco’s ‘significant’ oil and gas investments in Cameroon strengthen Africa’s energy security

(WO) – Perenco has recently launched its first industrial gas supply project in Cameroon. Last July, the company commissioned the Bigapa Gas Processing Center, a major milestone that also strengthened its historic partnership with Cameroon’s National Hydrocarbons Corporation (SNH).

The processing center will source gas from the Sanaga South Field and supply the Keda tile factory with 3.5 to 6.5 MMcfgd. The gas, which is crucial for regional industrial development in Cameroon, will be transported via a 6 km pipeline operated by SNH and used to power the factory’s electrical generators and kilns.

Perenco’s milestone of launching its first gas-to-industrial project in Cameroon builds on a successful track record of project delivery in the country in partnership with SNH. Last June, the company acquired a 9.9% stake in floating LNG company Golar LNG, with Perenco and SNH partnering on the Cameroon FLNG Terminal. The project will be serviced by Golar LNG’s FLNG vessel Hilli Episeyo, which discharged its 100th cargo of LNG last October.

In March 2024, Perenco started a five-well drilling program in the Kita-Eden field in the northern part of the Rio del Rey Basin offshore Cameroon. To explore the basin, the company is using its newly developed shallow-water vessel and the LUG drilling platform of the shipping service provider Dixstone.

The project – which falls under a 20-year license agreement signed in 2023 by Perenco, the Cameroonian government and international exploration company Addax Petroleum – underscores Perenco’s long-term commitment and ability to unlock untapped reserves in mature assets.

Perenco also recently struck a deal with oil and gas giant Eni in the Republic of Congo. The $300 million deal, due to close in March 2024, was first announced in June 2023 and involves Perenco buying some of the giant’s upstream assets in the country.

The deal is in line with Perenco’s strategy to expand its operations in Africa and supports the Republic of Congo and Europe’s broader energy security and energy transition objectives.

Through its operations in Cameroon and the Republic of Congo – as well as activities in the Democratic Republic of Congo, Chad, Gabon and Tunisia – Perenco is a major player in the continent’s upstream industry.

Demonstrating its technical expertise across various energy landscapes, Perenco drilled an appraisal well near the Hylia South West discovery offshore Gabon last February, targeting the Ntchengue Ocean reservoir and the lower Madiela carbonate reservoir. The appraisal is designed to help Perenco better understand the reservoirs and narrow its estimate of the oil reserves in place, currently estimated at between 20 and 100 million barrels.

Perenco also announced in February 2023 a final investment decision to build a 700,000 tonnes per year LNG production plant at the Cap Lopez terminal in Gabon.

The plant, which will require an investment of over one billion dollars, will take up to three years to complete. It is intended to make Gabon self-sufficient in butane production and turn it into a liquefied natural gas exporter. First production is scheduled to begin in 2026.

“From its pioneering gas-to-industrial project in Cameroon to significant investments in the continent’s mature oil and gas markets, Perenco’s recent achievements underscore a remarkable commitment to the African energy sector. The company’s innovative approach and strategic investments set a high standard for sustainable growth and industrial development. The Chamber looks forward to seeing how Perenco will continue to drive progress and contribute to Africa’s energy future in the years to come,” said NJ Ayuk, Executive Chairman of the AEC.