The Tanzania Petroleum Development Corporation (TPDC) has provided a revised work schedule in the Kiliwani North license and informed the operator Aminex that the commissioning of the Songo Songo Island gas plant is expected to commence in early April.
Aminex which concluded the final well integrity testing of the Kiliwani North-1 well (KN-1) says the well recorded a high tubing pressure reading relative to the other producing wells on Songo Songo Island.
Following the results a wellhead control panel has been installed and all work required by the Company prior to gas production will shortly be complete.
TPDC adds that during the commissioning programme, the initial production rates will be managed to allow for testing of the new gas processing facility and related pipelines.
All KN-1 gas will be sold to the TPDC at wellhead for an agreed price of $3.00 mmBTU (approximately US$3.07 per mscf), payable in US dollars, and will ultimately be transported by pipeline to Dar es Salaam, where it will be sold into the local Tanzanian market.
“The successful conclusion of the well integrity tests and installation of the wellhead control panel finalises the Company’s preparations prior to the commissioning of the new Songo Songo Island processing facilities. Aminex looks forward to the commencement of gas production and revenues from Kiliwani North,” says Aminex CEO, Jay Bhattacherjee.
“Following the signing of the gas sales agreement and the completion of the construction of pipeline and gas treatment infrastructure Solo looks forward to the commencement of commissioning at Songo Songo. Kiliwani North gas will go to the Dar es Salaam market and the KNDL partners will be paid for all production in US Dollars at a rate of $3 per million BTU,” commented Solo Oil chairman Neil Ritson.
LR Senergy has ascribed gross 28 billion cubic feet best estimate contingent resources to Kiliwani North-1, which was contingent on completion of the GSA. It is therefore Solo’s expectation that reserves at Kiliwani North will be booked later this year.
Current participants in the Kiliwani North Development Licence, following TPDC back in, are: Ndovu Resources Ltd (Aminex) 55.575% (operator), RAK Gas LLC 23.75%, Solo Oil plc 6.175%, Bounty Oil & Gas NL 9.05% and TPDC 5%.