Aminex, in its operation update on gas production from its Kiliwani North Development Licence in Tanzania, announced that it has issued its first invoices for the licence.

According to the company, the commissioning of the licence’s power generation system and other secondary facilities has been completed. In the course of the commissioning, gas rates are scheduled to increase to 30 Mmscfd while pressuring up the plant and pipeline.

In line with the terms of the signed Gas sales agreement, Aminex and its partners have issued an invoice to Tanzania Petroleum Development Corporation (TPDC) for April and May 2016.

All gas produced during the build-up to full production rates will be paid for under the terms of the agreement signed with TPDC. Aminex will receive $3.00 per Mmbtu.

The gas price is not related to any commodity price, so it is unaffected by the current commodity market conditions.

“We are pleased with the progress made so far at Kiliwani. The well has been performing very well and commissioning is so far on schedule. The Company continues to focus on delivering production growth through Kiliwani and driving its appraisal and eventual development programme at Ruvuma,” Jay Bhattacherjee (photo), CEO of Aminex, said.

Preliminary production rates is still being cautiously managed to permit testing and commissioning of the gas processing plant and pipeline, while also taking account of critical pressure and flow rate measurements to determine the best flow rate to make the most of the life of the reservoir.

Alongside TPDC, Aminex plans to carry out a well test during the production build up to point out the best flow rate. This flow rate will become the commercial production rate and the company plans to flow gas for a long time.

Kiliwani North -1 has booked contingent resources of 28 Bcf gross and Aminex intends to book reserves for Kiliwani North later in 2016, Energy-pedia reports.

Anita Fatunji