Bowleven warns of complexity, monetary pressure on path to Etinde
Bowleven has warned that the ultimate funding choice (FID) for Etinde is predicted in late 2022 however that it might want to increase financing.
Moreover, the presence of Russia’s Lukoil represents one other uncertainty on growth plans.
Bowleven is the minority companion within the Etinde venture, offshore Cameroon. The companions, led by New Age (African International Power), had thought-about home growth plans. Nonetheless, in December 2021, they determined exports by way of Equatorial Guinea have been one of the best ways to maneuver forward.
With a purpose to develop the useful resource, due to this fact, the governments of each nations should approve the plan. The companions would additionally have to signal a contract with Marathon Oil and a gasoline gross sales settlement.
Bowleven warned that Marathon and the varied joint ventures proudly owning services across the Punta Europa advanced, on Bioko, have been an additional complexity.
The processing of the moist gasoline feed can be of “explicit significance”, Bowleven warned. Société Nationale des Hydrocarbures (SNH) has beforehand referred to as for a tolling settlement, with the Etinde companions retaining possession of the product.
One other potential delay on the venture growth is Lukoil.
Bowleven mentioned it was “as but unsure” how the Ukraine battle might have an effect on reaching FID. Moreover, the Ukraine disaster has had an impression on the three way partnership companions’ capability to co-ordinate discussions.
Within the six months to the tip of 2021, Bowleven reported a lack of $1.2 million. The corporate has round $2.5mn in money, with one other $2.5mn invested.
Whereas it has sufficient money in the intervening time, the uncertainty across the FID is a threat. Ought to progress come slower than anticipated, Bowleven would want to boost funds to achieve FID. On the announcement of FID, its companions are because of pay $25mn to Bowleven.
Firm CEO Eli Chahin mentioned progress in 2021 was vital. “The current Ukrainian disaster has adversely impacted the tempo of the brand new chapter within the Etinde growth, nevertheless we stay optimistic that each one the JV members are aligned to convey to fruition the extra financial Etinde growth possibility.”
Exports by way of Equatorial Guinea would contain a dry gasoline pipeline to Bioko Island, residence of processing and liquefaction services. Bowleven mentioned it famous the same plan from Chevron for the YoYo and Yolanda discoveries.
Utilizing present services would reduce time and price to first manufacturing. The companions had beforehand thought-about an onshore processing plant at Limbe however, with a excessive upfront price, this may have proved more difficult.