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One region seems above all others to stubbornly buck the positive political and economic trends recorded over two decades by African Energy: it comprises the six Communauté Economique et Monétaire de l’Afrique Centrale (Cemac) countries and Democratic Republic of Congo (DRC). Events in the last month, including a failed coup in Gabon and contested elections in DRC, underline Central Africa’s chronic crisis of leadership. Such political behaviours are increasingly seen as an anachronism in a world structured by social media, as well as by older social bonds and traditional patterns of coercion by elites.

Victoria Oil & Gas (VOG) has announced the resumption of gas sales to power utility Eneo Cameroon for the Logbaba power station, and government approval of its acquisition of the Matanda Block. The news has come as a significant boost for Aim-listed VOG, which was hard hit when Eneo failed to renew its supply contract a year ago, and for Douala consumers that have experienced power cuts. Eneo’s cash flow has suffered from the government’s unwillingness to pay its bills, but while VOG said it was confident the problem was temporary, the Eneo supply represented an estimated 53% of Logbaba gas sales revenues for 2017.

The €1.26bn, 420MW Nachtigal hydroelectric project reached financial close on 24 December. Financing agreements were signed on 8 November and the owners spent the remainder of 2018 establishing and capitalising the project company, bringing in two new owners: the development funds Africa50 and Stoa Infra & Energie Ltd. First disbursement of funds is expected on 22 January, with notice to proceed with construction expected soon after. The plant is expected to generate 2.9TWh/yr electricity when it starts operating in 2023.

Tower Resources has signed a contract with Vantage Drilling International for the Topaz Driller jack-up rig for the Njom-3 well on the Thali licence in Q2 2019. The rig, a Baker Marine Pacific Class 375 jack-up, recently drilled two wells on the Etinde licence for NewAge and is currently employed in Gabon.

The Africa50 investment platform announced on 4 December that it has acquired a 15% stake in the 420MW Nachtigal hydroelectric power project, with the Stoa investment vehicle established by the Agence Française de Développement and Caisse des Dépôts acquiring 10% of the International Finance Corporation’s (IFC) stake in the project.

The 420MW Nachtigal hydroelectric power project took a significant step forward on 8 November with the signing of financing agreements. Nachtigal is one of the largest non-Chinese projects to be developed as an independent power producer (IPP) or public-private partnership in sub-Saharan Africa by transaction size, as all the Nigerian IPPs were developed by the state. The transaction was nearly 50% bigger than Nigeria’s landmark Azura-Edo scheme.

A consortium of Belgium’s Besix, France’s NGE and Morocco’s Société Générale des Travaux du Maroc has won a contract from Nachtigal Hydro Power Company (NHPC) to design and build the 420MW Nachtigal dam on the Sanaga River. Besix said the contract involved designing and building a dam up to 2km long and 14 metres high in roller-compacted concrete, and a 3km supply canal, as well as civil engineering works for the hydroelectric power plant with seven 60MW turbines and water intake facilities.

Operator New Age African Global Energy has failed to find additional gas with the IM-6 appraisal well on the Etinde Block. Partner Bowleven said the well achieved its main objective of delineating the wet gas/water contact location within the intra-Isongo 410 sand reservoir. It was also targeting an incremental 0.7tcf of wet gas in place from the 410 horizon but found that target and the two secondary targets were water bearing.

Cameroon’s plans to harness the hydropower potential of the Sanaga River took a step forward in mid-July with the approval by the World Bank Group of a $794.5m investment package for the 420MW Nachtigal hydropower project. The run-of-river project, which will cost an estimated $1.3bn, is being developed as a public-private partnership by the government of Cameroon, EDF International and the World Bank’s International Finance Corporation (IFC).

AIM-listed Victoria Oil & Gas (VOG) has agreed a new partnership to develop compressed natural gas (CNG) as it seeks to broaden its customer and product base to compensate for the loss of state utility Eneo’s gas offtake. VOG said on 26 June its subsidiary Gaz du Cameroun (GDC) had entered into an exclusive agreement to partner with Turkey’s Naturelgaz Sanayi ve Ticaret, Europe’s largest CNG supplier and distributor. Naturelgaz is a 93.7%-owned subsidiary of Turkey’s Global Investment Holdings, which focuses on clean tech and infrastructure investment.

Cameroon’s second floating liquefied natural gas (FLNG) project has taken a step forward with the signing of a gas convention agreement between New Age LNG and the government establishing the fiscal terms for its project to produce gas from the Etinde permit. Project company CMLNG, a subsidiary of New Age LNG, will use a newbuild FLNG production vessel to process gas from Etinde. The FLNG project will be developed in conjunction with the upstream Etinde development, operated by parent company New Age (African Global Energy).

Bowleven on 11 May announced the arrival of the Topaz Driller rig in Cameroonian waters from Singapore for a two-well appraisal drilling campaign on the Etinde licence for operator New Age (African Global Energy). The IM-6 well is expected to spud at the end of May to test the potential of the Intra Isongo play opened by the IM-5 well in 2012. The Topaz Driller has been contracted for 150 days.

Victoria Oil & Gas (VOG) remains in informal talks with Bowleven despite the termination of a farm-out agreement for the Bomono gas permit, and both sides are hopeful that a solution can be found. Announcing its H1 results on 29 March, Bowleven said the farm-out transaction terminated on 31 December 2017 following the parties’ inability to meet a number of conditions, including regulatory approval. The Bomono farm-out was announced shortly before Bowleven’s previous management was ousted by activist shareholder Crown Ocean Capital in March 2017.

Operator NewAge (African Global Energy) plans to spud the first of two appraisal wells on the Etinde permit in late Q2 targeting an additional 1-2tcf of gas. The first well, IM-6, will target the southern boundary of the Intra-Isongo Marine gas condensate field discovered by Bowleven’s IM-5 well in 2015. The main aim is to firm up the volume of petroleum resources in the field. Announcing its H1 results on 29 March, Bowleven said the gross contingent resources on a P50 (2C) basis of the various fields had been determined at 0.9tcf of gas with 95m barrels of condensate.

Golar LNG Ltd announced on 12 March that first production of liquefied natural gas (LNG) has successfully started from the Hilli Episeyo floating LNG vessel. The vessel arrived offshore Kribi in November for operator Perenco, and Golar said in February that final commissioning was expected in mid-April. Gazprom has contracted to lift all the LNG on a free on board basis.