Maurel & Prom has launched the first two wells of the Mnazi Bay gas field which will be delivering the Madimba processing center; operated by GASCO an affiliated company of TPDC, the entry point of the gas pipeline linking Mtwara to Dar es Salaam.

Maurel & Prom went into Tanzania in July 2004 with the Bigwa-Rufiji-Mafia permit in which it holds a 60% interest. In 2009, it strengthened its position with the acquisition from Artumas of the Mnazi Bay permit, in which its operated interest is 48.06%.

This production output will primarily be used exclusively for commissioning operations for the new TPDC/GASCO facilities.

 Expectations are that it to ramp up rapidly to 70 million cf/d with the connection of two additional wells in October 2015. A production capacity of 80 million cf/d is expected by the end of the year.

Under the Gas Sales Agreement signed on 12 September 2014, for which financial assurance are now in place, the sale price has been set at US$3.00 per million BTU, or around US$3.07 per thousand cf, rising in line with the US CPI industrial index.

The Mnazi Bay permit is governed by a production sharing contract dating from 18 May 2004. The development license was granted on 26 October 2006 for a 25-year term, renewable once for a further period of 20 years.

In some months to come, Maurel & Prom will provide analysis as to how the production output and reservoirs are performing, and given the encouraging results from the MB4 well drilled in the first half of 2015 would define an additional production capacity.

For 10 years, Maurel & Prom operator of 48.06% interest has built a strong reputation as an onshore oil operator with the Tanzanian authorities and local players. The Group is known for being a forerunner in an area that is thought to have very significant gas potential.