Energy company Victoria Oil & Gas said it had terminated a gas sales agreement in Cameroon after state-backed buyer ENEO Cameroon was unable to make payments.

ENEO was majority owned by London-based investment company Actis, which had a 51% stake, with the Cameroon government owning 44% and its employees owning the remaining 5%.

Victoria Oil & Gas, through subsidiary Gaz du Cameroun, had been supplying natural gas to ENEO’s Logbaba power plant since 2015 ‘despite ENEO’s poor payment record’, it said.

ENEO’s debt stood at $16m, or $9m net to Gaz du Cameroun, at the end of June.

Gaz du Cameroun served a default notice on ENEO on 2 June that included a 30-day remedy period.

‘As we have reached the expiry of this remedy period, Gaz du Cameroun has no alternative but to terminate the gas supply agreement with immediate effect,’ Victoria Oil & Gas said.

‘The company will now rigorously pursue this unpaid debt via the legal channels available to it, including a penalty payment of three months’ fees as a result of termination as per the signed term sheet.’

Source: Sharesmagazine