Aminex plc and Solo Oil have announced that the Tanzania Petroleum Development Corporation (TPDC) has paid them for the gas pumped from their Kiliwani North-1 well in Tanzania.

Although the amount of the payment was not disclosed, Solo oil's chairman, Neil Ritson, said it was quite a small amount which reflects the preliminary commissioning rates.“[We are] delighted that the first payment for gas from the Kiliwani North field has been made with minimal delay. Whilst the first payment is quite small, reflecting initial commissioning rates, ‎ we are pleased that an income stream has now commenced. Future payments will be larger and create an underlying cash flow from operations that will support Solo's ongoing investments,” he said.

According to a spokesperson from Aminex, Gas produced from the field was paid in US dollars and in line with the Company’s Gas Sales Agreement (GSA) with TPDC.The spokesperson added that the Company continues to work together with TPDC during the current commissioning period to reach a peak rate and will be paid for all gas produced during this phase.

Aminex operated the field with a 54.575% working interest alongside RAK Gas LLC with 23.75%, Solo Oil plc with 6.175%, Bounty Oil & Gas NL with 9.5% and TPDC with 5% interests.Solo’s chairman has estimated that at a production rate of 25 Mmcfpd, the company's per month income from the gas well will be US$150,000, Energy-pedia reports.

Anita Fatunji