Aminex has signed a Gas Sales Agreement (GSA) with the Tanzania Petroleum Development Corporation (TPDC) for the Kiliwani North gas field, situated in the Tanzanian Coastal Basin, off the coast of Tanzania.

The agreement which came into effect as of December 31, 2015, provides the basis for the commencement of production and for the company to generate its first revenues from Tanzania.

Under the GSA, gas will be sold at first for $3Mmpbtu, which is about $3.07 per thousand cubic feet. It also includes the provision for the indexation of gas sales price from January 2016 and payment security mechanisms

According to the company, final well preparation is to be completed prior to the start of production. However, a start date for commercial production on the field is to be a joint agreement between Aminex and TPDC.

The Kiliwani North Gas field is expected to have 44 bcf of gas in place at first, whereby 28 bcf is estimated to be identified as proven reserves at the commencement of commercial production. Gas from the field will be supplied to the just completed Songo Songo gas processing plant. 

“Achieving this agreement has been a long time coming but the final version is comprehensive and will allow production to commence with clarity and security. We are grateful to shareholders for their support and patience. With a mix of production from Kiliwani North and upcoming appraisal and development drilling in the highly prospective Ruvuma basin, we consider Aminex to be well placed for further growth”, Jay Bhattacherjee, Chief Executive of Aminex told Energy-pedia.

Aminex is the operator of the Kiliwani North Development Licence with 55.575% alongside RAK Gas, Bounty Oil & Gas, Solo Oil and TPDC with 23.75%, 9.5%, 6.175% and 5% interests respectively.

Anita Fatunji