Bowleven, the Africa focused oil and gas exploration has announced that its Operational Etinde offshore Cameroon Front End Engineering Design (FEED) contract has been awarded to Technip in Q1 2020 Commencement was delayed until 1 July 2020 due to the impact of the COVID-19 pandemic. This contract focuses on the design and engineering of the onshore gas processing facility, the IM well head platform and the appropriate production and sales pipeline infrastructure.
The FEED which is expected to complete in November 2020, is currently on time and within budget. According to the company, Work is also progressing on the sub-surface development plan, including location, number and type of wells required to produce wet gas from IM reservoirs. On finance, the loss for the financial year was $2.6 million.
Bowleven closed its financial year with $9.1 million of cash and a financial investment of $2.0 million, giving a total value of funds of $11.1 million. Having assessed the forecast cash expenditure to Financial Investment Decision (FID) and the receipt of $25 million on FID from the JV partners, the Company believes the Group has sufficient funds to continue in operation for the foreseeable future until at least FID, which is expected in 2021.
Bowleven and partner New Age Ltd have jointly appointed a lead financial adviser, Cofarco, to manage raising investment finance for the Etinde development. The Etinde JV partners are in further discussion with Société Nationale des Hydrocarbures (SNH) and various other commercial parties in respect of the sale of gas, Liquified Petroleum Gas (LPG) and condensate.
Working with JV partners on FEED, Commercial and Finance matters in respect of the Etinde development options with the aim of Etinde project FID in 2021, the JV partners are expected to address the Etinde Exclusive Exploitation Agreement (EEEA) licence duration as part of the FID process regulatory submission to the Government of Cameroon. The risk of the Etinde licence potentially expires in January 2021 is considered low to medium at the current time.
Chief Executive Officer of Bowleven plc, said: “Our focus in 2021 will be to work with all of our stakeholders to ensure FID is achieved and underpinned by a compelling development plan, which is suitably robust to secure future capex funding. This combined with a disciplined approach to capital management will ensure that we are able to deliver maximum value for the Company’s shareholders.”
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