27th May 2015 06:46
LONDON (Alliance News) - Victoria Oil and Gas PLC Wednesday said its wholly-owned subsidiary has paid in full for the acquisition of the Logbaba gas processing plant in Cameroon from Expro Worldwide BV.
The plant currently processes gas extracted from the GDC wells, producing condensate which is sold to a local refinery and clean natural gas which is distributed to customers through the 33 kilometre pipeline network in Douala, Cameroon.
The total consideration paid by Victoria's subsidiary, Gaz du Cameroun SA, was USD2.6 million which was paid for from cash generated from the GDC operations. Victoria said the acquisition of the plant "will deliver significant cost savings", it said.
The company is now evaluating proposals for a long term contract for the operation and maintenance of the plant with specialist service companies, including Expro.
"The purchase of the Logbaba plant is a key milestone for GDC, bringing with it significant cost savings which will enable us to continue to grow the business and increase shareholder value. We are now evaluating options for the Plant expansion and look forward to providing an update in due course," said Chairman of Gaz du Cameroun Kevin Foo.
By Joshua Warner; [email protected]; @JoshAlliance
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