Petroleum Africa
Find us on: 
Tuesday, September 16, 2014
Maurel et Prom and its partners on the Mnazi Bay License in Tanzania, Wentworth Resources and TPDC, have signed a gas sales and purchase agreement with TPDC for the long-term sale of natural gas from the Mnazi Bay and Msimbati fields to the government owned and operated Mtwara to Dar es Salaam pipeline, and the Madimba central processing facility (CPF). The pipeline and CPF are currently under construction and are scheduled for completion in Q1 2015.
Pursuant to the Mnazi Bay GSA, the Mnazi Bay partners are contracted to supply to the pipeline project up to a maximum 80 Mmcf/d of natural gas during the first eight months with the option to increase over time to a maximum 130 Mmcf/d for up to a 17-year supply period. The gas will be sold and purchased at the inlet to a 16-inch pipeline connecting the Mnazi Bay gas production facility to the Madimba CPF.
The initial delivery is expected to begin during the first four months of 2015 and be sold at a fixed price of $3.00 per mmbtu escalating with the United States CPI Industrial index. The Mnazi Bay GSA is subject to certain conditions, including the Tanzanian government providing all necessary approvals and providing an executed version of payment security agreements.
With a long-term contract in place, the Mnazi Bay Partners will use the time before the commencement of first gas delivery to construct and commission the necessary surface infrastructure, inclusive of separation facilities and flow lines, to tie existing wells into the Pipeline Project. Gas will be produced from the existing four wells in the Mnazi Bay and Msimbati fields and these wells are expected to be capable of producing natural gas sufficient to meet the initial 80 Mmcf/d delivery volumes under the Mnazi Bay GSA.
Maurel et Prom is operator and holds a 48.06% participation interest in production operations and 60.075% participation interest in exploration operations. The remaining participating interest in production operations are held by Wentworth with 31.94% and TPDC with 20%.
The company said that the Mnazi Bay field will move into production in 2015, enabling it to generate a second source of cash-flow, alongside its operations in Gabon. This represents a significant step forward with developing the value of this asset, which will contribute to its cash-flow on a long-term basis from 2015. With the signing of this contract, Maurel et Prom will be able to book the reserves from the Mnazi Bay field.
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
