Gasol plc is pleased to announce that the Company is in a direct joint venture agreement ("JVA") with Sociedad Nacional de Gas, G.E. ("SONAGAS G.E."), the national gas company of Equatorial Guinea, after African Gas Development Corporation Limited ("AFGAS") assigned its rights and obligations under the JVA to Gasol. An equally owned local project company, SONAF G.E. S.A. ("SONAF"), was formed by SONAGAS G.E. and AFGAS in 2007. Gasol has now assumed AFGAS's position in SONAF. SONAF will serve, as the principal vehicle through which the activities described below will be implemented.
In November 2008, SONAGAS G.E. executed a Heads of Agreement ("HoA") with Ministry of Mines, Industry and Energy, Empresa Nacional de Petroleos de Guinea Ecuatorial, and Exxon Mobil's Equatorial Guinea subsidiary, Mobil Equatorial Guinea Inc ("MEGI"). The HoA pertains to the gas in the Zafiro Development Area (“ZDA”), Block B which is currently being developed under the terms of the Production Sharing Contract for Block B, Offshore NW Bioko (Block B PSC). This gas is now committed to SONAF pursuant to the HoA and a follow-on Gas Supply Agreement is currently being negotiated with MEGI as Block B operator to consolidate the overall program.
SONAF will develop and monetize the ZDA gas for supply to the domestic and export markets, with a focus on the development of infrastructure and potential related opportunities.
Juan Antonio Ndong Ondo, Director General of SONAGAS G.E., commented:
"We are very pleased to be in a direct Joint Venture with Gasol, and look forward to the timely implementation of the planned Zafiro Gas Project and related gas monetization initiatives which SONAF may decide to embark on in due course. These initiatives will be closely aligned to Government’s policy to eliminate all gas flaring in the country. "
Soumo Bose, CEO of Gasol plc, commented:
"This agreement represents a significant milestone for Gasol's Equatorial Guinea business development activities. We are looking forward to building on our existing relationships with SONAGAS and working closely with it in developing gas from Zafiro and other gas infrastructure and monetization projects which are aligned to the objectives of the Government. We are excited about the prospects of building a sustainable gas business in Equatorial Guinea which has a well developed gas, LNG and methanol infrastructure, with ambitions to expand capacity. "