Lukoil partners in Cameroon prefer to export gas to Equatorial Guinea, Ukrainian crisis negatively affecting project's pace
MOSCOW. March 30 (Interfax) - Lukoil's partners in the Etinde gas and condensate project offshore in Cameroon came to the conclusion in December 2021 that exporting gas to Equatorial Guinea is the preferred development option from the point of view of value, risks, and benefits to every party, Bowleven, one of the participants in the joint venture, said in a statement.
New Age, the project's operator, presented a technical, risk, and financial evaluation to Cameroon's Societe Nationale des Hydrocarbures (SNH) on a wide range of possible options for development at a meeting of the operating committee in mid-January.
SNH agreed to study the recommendations and is planning to give its opinion on the option as swiftly as possible, as well as present a proposal on next steps. "The recent Ukraine crisis has impacted the ability to coordinate efforts amongst all JV members, and we envisage a period of normalization will resume in due course to facilitate this effort," the statement said.
"Whilst one of our JV partners, Lukoil PJSC, has been impacted by the recent imposition of Russian sanctions, their participation in the Etinde PSC is as a non-operating minority partner. Notwithstanding being a private sector concern, we are as yet uncertain of how the Ukrainian conflict will impact the timeframe for obtaining final investment decision (FID) for the project," it said.
"At this stage, we remain satisfied that the JV partners could be able to reach a final investment decision during 2022, however, we also recognize that outstanding commercial and political issues are not within Bowleven's or our JV partners' control and may therefore in practice require further time to negotiate and receive the relevant approvals to reach FID," the statement said.
"The recent Ukrainian crisis has adversely impacted the pace of the new chapter in the Etinde development, however, we remain optimistic that all JV members are aligned to bring to fruition the more economic Etinde development option," Bowleven CEO Eli Chahin was quoted as saying in the statement.