Mtwara to Dar es Salaam pipeline now complete, first gas delivery expected in July 2015

East Africa-focused oil & gas company has announced that the construction of the Government owned and operated Mtwara to Dar es Salaam pipeline is now 100% complete and the two associated processing facilities are approximately 96% complete.

Wentworth Resources today provides an operational update in the lead up to the first delivery of gas to the new transnational pipeline from its assets in Tanzania and announces that drilling operations of the MB-4 development well in the Mnazi Bay Development License Area has commenced.

Regarding Wentworth’s assets, construction has commenced on tying-in the existing four development wells and installing flow lines in order to supply gas to the new pipeline and two of these wells are now fully tied-in.

Meanwhile the Tanzania Petroleum Development Corporation (TPDC) has informed Mnazi Bay Partners that some delays have been experienced in commissioning and startup of the gas pipeline project and, as a result, delivery of first gas into the pipeline is now expected to take place in July 2015.

“In light of this delay, we are continuing to work on securing additional debt financing to ensure that we have sufficient funds available to see us through to first cashflow. Whilst completion and commissioning delays will impact the timing and amount of expected cash flow generated in 2015, we see clear, tangible progress towards first gas being delivered into the new pipeline in the summer,” says managing director Geoff Bury.

Drilling operations of the MB-4 development well are expected to commence in the next few days and the well is designed to penetrate the Mnazi Bay Upper and Mnazi Bay Lower gas bearing sands of the discovered Mnazi Bay gas fields.

The MB-4 development well has a planned depth of 2,089 meters True Vertical Depth Sub Sea and, based on the current drilling program, is expected to take approximately two months to drill and complete.

“We are very encouraged by the progress of the pipeline infrastructure and all aspects of the gas pipeline project and look forward to ramping up volumes of gas supply, helped by additional production capacity expected from the MB-4 development well,” says managing director Geoff Bury.

“With the pipeline project nearing completion and a signed 17 year Gas Sales Agreement, Wentworth and the Mnazi Bay Partners are well positioned to be the first suppliers of gas into the new pipeline,” he concluded.

Wentworth has a 31.94% net interest in this well, which is being operated by Maurel et Prom and drilled with the Caroil #2 drilling rig.