Currently two wells are now producing and the remaining three wells will be put on production in the coming months according to the company.

 

“We are very pleased to announce that production from Mnazi Bay has now commenced and the Mnazi Bay joint venture is the first supplier to the new transnational pipeline in Tanzania. Concluding the payment guarantee and starting production in our Mnazi Bay gas fields are pivotal events for Wentworth and underpin the long-term viability of our operations in East Africa and our partnership with Maurel & Prom and TPDC,” says Managing Director Geoff Bury.

 

Initial production volumes will be used for commissioning purposes and to fill the pipeline even as production rates are expected to increase to 70 mmscf/d by October 2015 and reach 80 mmscf/d by the end of 2015.

 

Gas deliveries by TPDC for use by power and industrial companies are expected to commence in October with the Partners set to receive payment at the end of each calendar month for sales volumes delivered during that month.

 

Under the Gas Sales Agreement signed on 12 September 2014, the sale price has been set at US$3.00 per million BTU, or around US$3.07 per thousand cubic feet, rising in line with the US CPI industrial index.

 

“Wentworth is well positioned to become a significant gas producer in Tanzania, where supply and demand dynamics offer an opportunity which we and our Partners are uniquely placed to realize. We expect to exit 2015 in a strong financial position,” adds Bury.

 

Wentworth adds that together with partners in the venture agreed payment security terms with TPDC, the buyer of the gas, and various other parties

 

The payment security provides the Partners with sufficient assurance that sales of natural gas will be settled in accordance with the agreed payment terms

Source : OIL NEWS KENYA