Tanzania’s Mnazi Bay Asset Gas Sales Reach $7.9 Million in 2017

Mnazi bay asset joint venture partner Wentworth Resources has reported that total cash received for invoiced gas sales from Tanzania Petroleum Development Corporation (TPDC) and Tanzania Electric Supply Company Limited (TANESCO) has reached $7.9 million in 2017 in today’s update to shareholders.

The amount includes the most recent payment of $1.2 million from TANESCO and TPDC on top of the 2.9 million received in Q1 and $1 million received prior to the June update. A clearer breakdown is expected when the company reports on Q2 on 10 August 2017.

“Since 31 March 2017, receivables from TPDC have remained consistent at four months and receivables from TANESCO have improved from thirteen months to eight months. The Mnazi Bay Partners continue to work closely with the Government of Tanzania to settle the remaining outstanding invoices,” Wentworth said in a statement.

On production Wentworth reports that whereas daily production volumes during the rainy months of April and May were impacted by the use of hydroelectric power only to rebound in June when gas demand has increased with volumes averaging 45 MMscf/d bringing the average for Q2 to 31 MMscf/d. Furthermore, the Company says it has experienced a temporary increase in volumes since the start of Q3 due to maintenance work elsewhere in the pipeline system with July month-to-date averaging 71 MMscf/d. Wentworth maintains it will keep to its earlier forecast for 2017 averaging between 40 – 50 MMscf/d.

In relation to the recent legislative changes in Tanzania and the introduction of three new bills relating to the mining and oil & gas sectors, the Company says it does not anticipate any material impact on our existing operations.

Other partners in the concession include Maurel et Prom (operator) 48.06 percent and TPDC with 20 percent.