Olufemi Adeyemi
The processing center is designed to extract gas from the Sanaga South Field and deliver between 3.5 million and 6.5 million cubic feet of natural gas daily to the Keda tile factory. This initiative is crucial for the industrial development of the region, as the gas will be conveyed through a 6-km pipeline operated by SNH, powering the factory's electrical generators and kilns.
The African Energy Chamber (AEC), representing the interests of the African energy sector, applauds Perenco for this significant accomplishment, which presents a strategic opportunity for growth in Cameroon and the broader West African region. With extensive expertise in oil and gas exploration, production, and management, Perenco is dedicated to advancing technology in its operational markets, contributing to a more prosperous future for all Africans.
Perenco's achievement in launching its first gas-to-industry project in Cameroon builds on its successful history of project execution in partnership with SNH. In June, the company secured a 9.9% interest in Golar LNG, a floating LNG operator, with whom Perenco and SNH collaborate on the Cameroon FLNG Terminal. This project is supported by Golar LNG’s Hilli Episeyo FLNG vessel, which celebrated the offloading of its 100th LNG cargo last October.
In March 2024, Perenco commenced a drilling program consisting of five wells at the Kita Eden field, situated in the northern region of the Rio del Rey Basin off the coast of Cameroon. The company is utilizing its newly engineered water barge, specifically designed for shallow water operations, along with the LUG drilling platform supplied by the marine services firm Dixstone to conduct exploration activities in the basin. This initiative, which is part of a 20-year licensing agreement established in 2023 between Perenco, the Cameroonian government, and international exploration company Addax Petroleum, underscores Perenco's enduring commitment and capability to access stranded reserves within mature assets.
Additionally, Perenco has recently finalized a transaction with the oil and gas giant Eni in the Republic of Congo. Concluded in March 2024, this $300 million agreement, initially announced in June 2023, involves Perenco acquiring several upstream assets from the supermajor in the region. This acquisition aligns with Perenco's strategy to broaden its operations across Africa and contributes to the energy security and transition objectives of both the Republic of Congo and Europe.
Through its activities in Cameroon and the Republic of Congo, along with operations in the Democratic Republic of the Congo, Chad, Gabon, and Tunisia, Perenco plays a significant role in the continent's upstream sector. Showcasing its technical expertise across various energy environments, Perenco spudded an appraisal well in February near the Hylia South West discovery offshore Gabon, focusing on the Ntchengue Ocean reservoir and the lower Madiela carbonate reservoir. This appraisal aims to enhance Perenco's understanding of these reservoirs and refine their estimates of in-place oil resources, currently projected to be between 20 and 100 million barrels.
In February 2023, Perenco made a significant announcement regarding a final investment decision for the establishment of a liquefied natural gas (LNG) production facility at the Cap Lopez terminal in Gabon, with a capacity of 700,000 tons per year. This project entails an investment exceeding $1 billion and is projected to take up to three years for completion. It is anticipated that this facility will enable Gabon to achieve self-sufficiency in butane production and become an LNG exporter, with the first production phase aimed for 2026.
"Perenco's recent accomplishments, ranging from its pioneering gas-to-industry initiative in Cameroon to considerable investments in the continent's established oil and gas sectors, highlight a profound dedication to the energy landscape in Africa. The company's forward-thinking strategies and investments exemplify a benchmark for sustainable development and industrial advancement. The Chamber looks forward to observing how Perenco will persist in fostering progress and enhancing Africa's energy prospects in the years ahead," remarked NJ Ayuk, Executive Chairman of the AEC.