Aminex says  it is also awaiting from the Tanzanian government the completion of the Deed of Assignment, also expected to occur shortly with the Kiliwani North gas field due to commence production in the first quarter of 2015.

 

In addition, Aminex have advised that construction work for the 2 kilometre long tie in pipeline from the new Songo Songo gas processing plant to the Kiliwani North 1 (‘KN1′) well has now commenced and is expected to be completed by year end.

 

The Songo Songo processing plant and pipeline also remain on schedule and there are no anticipated delays to the commencement of production which is expected early next year.

 

“This agreement, which we now expect to close shortly, will be a major landmark for Solo as it will lead to the Company’s first gas production and revenue from Tanzania.  We have recently reviewed the draft gas sales agreement and are confident that it can be signed shortly and supports our belief in the commerciality of gas from our various interests in Tanzania,” says Solo Oil chairman Neil Ritson.

 

The KNDL contains the KN1 well which is expected to produce at an approximate rate of 20 million cubic feet per day in 2015.  Independently verified gross in-place unrisked mean gas resources of the well, computed by Isis Petroleum Consultants Pty Ltd, are estimated as 45 billion cubic feet.

 

The Songo Songo gas processing plant is connected with the newly constructed 36-inch gas pipeline from Mnazi Bay near Mtwara in the south of Tanzania to the national capital Dar es Salaam in the north, and this provides an immediate route to monetise the Kiliwani North gas production.

 

Ndovu (Aminex’s nominated joint operator of KNDL together with the Tanzanian Petroleum Development Corporation) is in advanced negotiations on a gas sales agreement with the Tanzanian authorities and these negotiations are expected to be satisfactorily concluded in the near future.

 

Solo and Aminex are already partners in the Ruvuma Production Sharing Contract (“Ruvuma”) in southern Tanzania, with respectively 25% and 75% working interests, and where newly acquired seismic data has extended the potential of the Ntorya appraisal area.  The partners in Ruvuma have recently announced an upgrade of the mean gas in-place estimate to 2.3 trillion cubic feet (“tcf”) by combining the Ntorya discovery with the adjacent Likonde prospect.

Source : OIL NEWS KENYA