Kiliwani North license operator Aminex has announced that it has received first payment in relation to gas produced from the Kiliwani North-1 well in Tanzania and supplied to the Tanzania Petroleum Development Corporation.
Gas produced was paid in $US and in accordance with the Company’s Gas Sales Agreement (GSA) with TPDC.
Aminex adds that it continues to work with TPDC during the current commissioning period to achieve an optimal rate and during this phase is being paid for all gas produced.
According to joint venture partner Solo Oil it expects to receive $150,000 monthly at a production rate of 25 million cubic feet per day although production is currently much higher.
“Solo is 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,” says Solo Chairman Neil Ritson
The partners expect larger future payments that will create an underlying cash flow from operations that will support JV ongoing investments.
KN-1 well which gas production commenced in April 2016 is processed at the new Songo Songo Island Gas Processing Plant and transported through the 24-inch spur line into the main 532km 36-inch pipeline which provides gas to Dar es Salaam.