23rd Sep 2014 08:31
LONDON (Alliance News) - Victoria Oil and Gas PLC Tuesday said the Wouri river crossing will be delayed between four to six weeks due to equipment problems.
The Wouri river crossing, in Douala, Cameroon, is aimed at passing a gas pipeline across the river to deliver gas to the Magzi Industrial Estate, and then on to central Douala.
The drilling contractors, Britanica Horizontal Directional Drilling Ltd, have experienced equipment problems and has agreed with Victoria Oil and Gas to restart the pipe insertion, delaying the project by approximately four to six weeks.
Victoria Oil and Gas said the remedial cost for the work will be the responsibility of Britanica.
In July, Victoria Oil and Gas announced the start of the project had been pushed back following the delay in receiving some of the necessary parts.
The company also said that, in addition to the river crossing, a second Britanica team will be laying 400 metres of pipe into the Magzi Estate, connecting the main line to the entry of the crossing. This is due to be completed around the same time the river crossing is completed, it said.
Following the completion of the projects, the first three customers at Magzi Estate are expected to commence consumption of gas, it added.
"Our team is working with Britanica on a solution that will allow us to complete the crossing in the shortest possible time. We will use this period constructively and ensure that our first customers in the Magzi Estate in Bonaberi are ready to be connected as soon as the crossing is successful," said Victoria Oil and Gas Chairman Kevin Foo in a statement.
Victoria Oil and Gas' shares were down 6.9% to 1.63 pence per share Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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