Victoria O&G announced that the Production Facilities at the Logbaba site, located in Cameroon, which will treat the gas from the wellheads and separate the condensate, are now mechanically complete. Pre-commissioning of the Production Facilities has commenced and approximately 80 percent of all instrumentation loops have been tested. All power circuits are in place and have been tested. Other successful tests completed include the La-105 and La-106 hydraulic valves control, two de-sander units, the 10,000 psi high pressure pipework from the production valves on the christmas trees to the adjustable chokes, the high pressure coolers, the firewater water pumps and the plant back-up diesel generator.
Pre-commissioning of all the remaining vessels and equipment is expected to be completed within the next week. Full commissioning commences thereafter with product and gas being flared while all instrumentation and systems are verified ahead of first gas production.
Pipeline installation to the first customer hub located on the Magzi Industrial Estate ('Magzi') is now complete. The total length of pipeline installed and backfilled to and around Magzi is 5km, comprising 400mm, 250mm and 63mm diameter pipe sizes.
Specialist hydraulic and pneumatic testing equipment has been utilized for pipeline pre-commissioning, which includes stress testing of the entire existing network. This work is expected to be completed within the next two weeks. Radiographic examination of all the pipeline welds will also be completed within this period. On completion of this work program, the pipeline will be purged with gas for several days as part of the network commissioning process ahead of first gas production.
Customer conversion work has commenced on a number of sites on Magzi. The scope of work includes installation of dual fuel burners and control panels as wells as individual pressure reduction and metering stations. The first customers are scheduled to accept gas before the end of December with additional customers progressively coming on stream thereafter. The Company anticipates steadily building sales to approximately 20 customers by the end of the first year of operations as the entire pipeline network, consisting of 34km, is completed.
The Logbaba gas and condensate field has proven and probable reserves of 212 billion cubic feet of gas (35.3 million barrels of oil equivalent ('boe')) and 4.2 million barrels of condensate. The Company has a 95 percent interest in and is operator of the Logbaba field. VOG anticipates gross gas sales of 8 million standard cubic feet per day ('mmscf/d') by the end of the first year of operations, rising to 44 mmscf/d (7,300 boe) by the end of 2014. The pipeline has a capacity of 60 mmscf/d, which the Directors anticipate to be of sufficient size to satisfy the Douala industrial market over the medium term. Condensate separated from the gas at the process plant will be stabilized and trucked to the Sonara refinery at Limbe, located 60km away. Condensate sales are anticipated to be 160 barrels of condensate per day by the end of 2012, rising to 880 barrels by the end of 2014.
The Company remains on schedule for first gas sales by the end of the year. With regard to the Logbaba development and production operations, the Company has an excellent HSE record with over 20,000 thousand man days completed, no serious injury and just one lost time incident.
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