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Monday, August 19, 2013
Aminex plc announced that while the Kiliwani North gas field in Tanzania is ready to produce and deliver, there are constraints affecting the project. Access to the market has been restricted due to severe congestion in the existing pipeline system. The installation of a new and very much larger pipeline together with associated treatment plants will resolve this impasse and good progress is being made on the project.
A new 540-km, 36” diameter pipeline will provide ample delivery capability for gas from Kiliwani North, Ntorya, and probably for subsequent discoveries which the company may make in the Ruvuma basin. Aminex said that the pipeline has already arrived in Tanzania from Chinese mills. A new treatment plant on Songo-Songo island will be located less than 2 km from Kiliwani North. The main pipeline will pass within 12km of the Ntorya-1 discovery well which, when ready for development, can be tied into a second new treatment plant, being constructed approximately 30km from the Ntorya area. Gas sales negotiations are in progress with the Tanzanian Petroleum Development Corporation which will manage the new pipeline and the Company is confident that fair and economically viable terms, together with a reliable delivery mechanism to market, will be established in the near future.
Meanwhile, Ruvuma PSA farm out talks continue with various parties. An incoming partner will participate in both the Ntorya appraisal activity and the remaining exploration activity in the block. Unrisked prospective resources of over 5 Tcf have been independently estimated for the known prospects and leads within the Ruvuma PSA and it is envisaged that additional 2D seismic will be used to select future drilling locations. Exploration drilling must be completed by late-2016 when the remainder of the PSA, outside designated appraisal, development, or production licenses, is due to be relinquished. Further announcements will be made in due course as negotiations with both potential partners and with the pipeline owner are advanced.
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