{"id":11419,"date":"2021-12-17T11:31:36","date_gmt":"2021-12-17T11:31:36","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=11419"},"modified":"2021-12-17T11:34:20","modified_gmt":"2021-12-17T11:34:20","slug":"tanzania-wentworth-expects-to-achieve-milestone-average-production-rate-for-2021-of-over-80-mmscf-day","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-wentworth-expects-to-achieve-milestone-average-production-rate-for-2021-of-over-80-mmscf-day\/","title":{"rendered":"TANZANIA: Wentworth Expects to Achieve Milestone Average Production Rate for 2021 of over 80 MMscf\/day"},"content":{"rendered":"

Following a successful first half of the year, demand for natural gas in\u00a0Tanzania\u00a0has again remained strong throughout the second half. This strengthening in demand in 2021 is due to sustained economic growth, continued demand in the industrial sector and partly due to lack of supply from hydro-electric generation as a result of poor rainfall over the catchment areas of the hydro dams.<\/span><\/p>\n

The Company, through its partnership in the Mnazi Bay Joint Venture, continues to provide a reliable source of natural gas for domestic electricity generation, thereby supporting\u00a0Tanzania\u00a0to secure energy that is critical for its ongoing development and growth.<\/span><\/p>\n

The average gross daily production rate from the\u00a0Mnazi Bay\u00a0gas field in\u00a0December 2021\u00a0to date has been approximately 102 MMscf\/day and, as a result of the stronger overall demand during 2021, the Company expects to achieve a milestone average production rate for the calendar year of over 80 MMscf\/day – exceeding the high-end of the already upwardly-revised guidance from\u00a0June 2021.<\/span><\/p>\n

Operational highlights<\/span><\/strong><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>The health and safety of employees remains paramount and robust precautionary measures have been and continue to be implemented to mitigate against the risk of COVID-19 both in the field and in the Dar es Salaam office. There has been no operational disruption due to COVID-19 to date<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>The Company expects to achieve an annual average production rate for 2021 of more than 80 MMcf\/day, above the high-end of revised guidance for the year and significantly above the average rate in 2020<\/span><\/p>\n

o\u00a0<\/span>Updated guidance as of\u00a0June 2021\u00a0was 70 – 80 MMcf\/day (gross), raised from 65 – 75 MMcf\/day (gross)<\/p>\n

o\u00a0<\/span>2021 average daily production is approximately 23% higher than the average daily production rate in 2020, which was 65 MMcf\/day<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>Operational costs of production remain low due to continued focus on cost efficiencies and high degree of operational leverage at\u00a0Mnazi Bay<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>The Mnazi Bay JV Partners\u00a0have delivered on the 2021 work programme, which was focused on ensuring reliability and sustainability of supply. Highlights include:<\/span><\/p>\n

o\u00a0<\/span>Slickline operations on the MB-4, MB-2 and MS-1X wells<\/span><\/p>\n

o\u00a0<\/span>Refurbishment of the MB-1 well site superstructure, which was completed significantly under budget<\/span><\/p>\n

o\u00a0<\/span>Pre-Front End Engineering and Design (FEED) Study on installing a compressor station to the Gas Production Facility at\u00a0Mnazi Bay<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0<\/span>Subject to regulatory approval of the 2022 budget, the JV partners expect to continue with standard slickline operations to optimise the capacity of the\u00a0Mnazi Bay\u00a0field and to progress the compression project which is due for completion in\u00a0<\/span>2023, as well as further evaluating opportunities to deliver additional gas supplies<\/p>\n

\u00b7\u00a0\u00a0\u00a0<\/span>The Company intends to explore and evaluate growth opportunities both within the\u00a0Mnazi Bay\u00a0licence and the greater geographical region to support increasing\u00a0in-country demand for natural gas<\/span><\/p>\n

Strong and growing demand outlook<\/strong>\u00a0<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0<\/span>TANESCO announced in November that natural gas will be used to address a 345MW shortage gap of power to the National Grid to compensate for the lack of capacity from its hydro-electric power stations due to low water levels in the dams and rivers of the catchment areas<\/p>\n

\u00b7\u00a0\u00a0\u00a0<\/span>As part of the plan, TANESCO intends to increase production by fast-tracking maintenance of its natural gas-plants at Ubungo and expediting the completion of the Kinyerezi I Extension Generation Facility<\/p>\n

\u00a0<\/span>Record financial performance\u00a0<\/span><\/strong><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>Record financial results announced in\u00a0September 2021, placing the Company in the strongest financial position in its history, with record revenue, EBITDAX, and cash on hand<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>Tanzania Petroleum Development Corporation (TPDC) continues to remain fully current with all invoices for gas sales; Tanzania Electric Supply Company (TANESCO)\u00a0has repaid in full its outstanding arrears and is now fully up to date with due invoices\u00a0<\/span><\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>Strengthening financial position with\u00a0$24 million\u00a0cash in hand at\u00a030 November 2021 2021, after payment of both\u00a0$2.6 million\u00a0final dividend for 2020 in\u00a0July 2021\u00a0and\u00a0$1.32 million\u00a0interim dividend in October, an increase from\u00a0$22.5 million\u00a0cash as at\u00a030 June 2021<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>Strength of financial performance enabled an increased interim dividend to be declared of\u00a0<\/span>of\u00a0GBP 0.52 pence<\/span>\u00a0per share, 10% higher than the 2020 Interim distribution of\u00a0$1.2 million<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>Wentworth expects a 2021 final dividend of\u00a0US$2.64 million\u00a0in line with the company’s policy of a 1\/3 : 2\/3 split between the interim and the final dividend – which would bring total capital returns for FY2021 to\u00a0US$3.96 million<\/span><\/p>\n

\u00a0<\/span>Sustainability priorities<\/span><\/strong><\/p>\n

\u00b7\u00a0\u00a0\u00a0<\/span>Stakeholder engagement is key to Wentworth’s sustainability strategy; strong relationships with in-country partners including the Government of\u00a0Tanzania\u00a0and local communities are evidenced by ongoing demand growth, operational performance and payment of receivables<\/span><\/p>\n

\u00b7\u00a0 \u00a0\u00a0<\/span>To further formalise its strategic focus on climate action and its broader ESG priorities, Wentworth formed a Board Sustainability Committee in September of this year with\u00a0Juliet Kairuki\u00a0appointed as Chair, providing greater oversight of the business’ ESG risks and opportunities<\/span><\/p>\n

\u00b7\u00a0\u00a0<\/span>Maintaining its robust ESG framework remains a priority following the launch of the inaugural Sustainability Report this year. The publication of the 2021 report is expected in\u00a0April 2022<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>Measurement and mitigation of climate-related impacts is a critical component of Wentworth’s climate strategy. In November, a new agreement between\u00a0Wentworth\u00a0and\u00a0Vitol SA\u00a0was established to jointly develop new community-focused carbon credit programmes in\u00a0Tanzania\u00a0aligned to the UN Sustainable Development Goals<\/span><\/p>\n

o\u00a0<\/span>Immediate objective is for Wentworth to offset all scope 1 and 2 emissions and partially offset scope 3 emissions by 2022<\/span><\/p>\n

o\u00a0<\/span>Wentworth’s emissions footprint remains one of the lowest in the\u00a0UK-listed E&P sector \u00a0on a scope 1 and 2 basis with an emissions intensity in 2020 of 0.42kg\/CO2 boe (1,676.9t CO2 e)Wentworth’s priority is to take continuous action to reduce emissions as swiftly as possible with further progress made in 2021 on reduction initiatives to be outlined in the 2021 Sustainability Report.<\/span><\/p>\n

Katherine Roe, CEO, commented:<\/span><\/p>\n

“As we reach the end of 2021, at Wentworth we have been delighted to reflect on our many successes of the year. Our most recent being our expectation to beat our revised guidance and to achieve a milestone average production rate for 2021 of over 80 MMscf\/day.<\/span><\/p>\n

The demand dynamics in\u00a0Tanzania\u00a0are becoming increasingly compelling with an ambitious economic growth plan set to accelerate energy demand further over the coming years. And whilst driving up energy access through our natural gas production has a transformational role to play on the socio-economic outcomes for our communities in\u00a0Tanzania, we have also used this year to ensure we are playing a responsible role in mitigating and minimising our impacts as much as we can and as quickly as we can. Our carbon offset partnership with Vitol is evidence of this and we are excited about taking this journey with them for the benefit of our communities in country.\u00a0<\/span><\/p>\n

We thank\u00a0John Bentley\u00a0for his invaluable contribution and many years of being part of our Wentworth team. He has been an integral part of the Board during his tenure and he will be missed on both a professional and personal level.<\/span><\/p>\n

Looking ahead to year end, we remain in the strongest position in our corporate history, with half the Company’s market capitalisation backed by cash. Our robust fundamentals have ensured that we remain financially and operationally resilient allowing us to increase our returns to shareholders year on year. We remain committed to our sustainable and progressive dividend policy and look forward to reporting back on full year performance in 2022.”<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Following a successful first half of the year, demand for natural gas in\u00a0Tanzania\u00a0has again remained strong throughout the second half. This strengthening in demand in 2021 is due to sustained … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":11420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7443,11],"tags":[9925,1428,1608,1696,2463,2466,2543,9924,2719],"class_list":["post-11419","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-eastern-africa","category-top-news","tag-kinyerezi","tag-lng","tag-mnazi-bay","tag-natural-gas","tag-tanesco","tag-tanzania","tag-tpdc","tag-ubungo","tag-wentworth-resources","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/Tanzania-Wentworth-2.jpg?fit=679%2C453&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-2Yb","jetpack-related-posts":[{"id":11702,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-mnazi-bay-produces-highest-gas-quarterly-performance-ever\/","url_meta":{"origin":11419,"position":0},"title":"TANZANIA: Mnazi Bay Produces Highest Gas Quarterly Performance Ever","author":"","date":"January 26, 2022","format":false,"excerpt":"Wentworth Resources and its joint venture partners achieved record quarterly production of 91.5 MMScf\/d from the Mnazi Bay gas field in the fourth quarter of 2021 supported the steadily increasing demand for natural gas in Tanzania, which remained strong throughout the second half of last year. According to the company\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/Tanzania-Wentworth-2.jpg?fit=679%2C453&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/Tanzania-Wentworth-2.jpg?fit=679%2C453&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/Tanzania-Wentworth-2.jpg?fit=679%2C453&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":12357,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-wentworth-resources-provides-operational-update\/","url_meta":{"origin":11419,"position":1},"title":"TANZANIA: Wentworth Resources Provides Operational Update","author":"","date":"June 22, 2022","format":false,"excerpt":"Following record production achieved in 2021,\u00a0Wentworth and its joint venture partners\u00a0continued to realize\u00a0strong production\u00a0rates\u00a0throughout 2022,recording an average production rate\u00a0of 92 MMscf\/d year to date. The five producing wells in the Mnazi Bay field and the associated joint venture operated facilities continued to perform well and without issues. Furthermore, the reductions\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/06\/Tanzania-Ruvuma.png?fit=541%2C542&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/06\/Tanzania-Ruvuma.png?fit=541%2C542&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/06\/Tanzania-Ruvuma.png?fit=541%2C542&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":10251,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-wentworth-resources-final-results-for-the-year-ended-31-december-2020\/","url_meta":{"origin":11419,"position":2},"title":"TANZANIA: Wentworth Resources Final Results for the year ended 31 December 2020","author":"","date":"April 22, 2021","format":false,"excerpt":"Financial \u00b7\u00a0\u00a0\u00a0\u00a0Declaring a final dividend in respect of FY 2020 of 1.0 pence per share ($2.6 million); a total dividend distribution in respect of 2020 of $3.8 million (1.5 pence per share) representing an increase of 27% from 2019 ($3.0 million) and a yield of approximately 6.7% (calculated on an\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/01\/Wentworth-Resources.png?fit=375%2C286&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":9046,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-heavy-rain-covid-19-see-less-demand-for-natural-gas-h1-2020\/","url_meta":{"origin":11419,"position":3},"title":"TANZANIA: Heavy Rain, COVID-19 See Less Demand for Natural Gas H1 2020","author":"","date":"September 4, 2020","format":false,"excerpt":"There was marginal decline in industrial demand due to weakened activity as a result of COVID-19\u00a0 as well as heavy rain that resulted more reliance of hydro-power generated electricity in Tanzania. According to Wentworth Resources COVID-19 restictions and a prolonged rainy season in January and June (normally March to late\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/10\/mnazi-bay-pipeline.png?fit=437%2C531&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":10829,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-wentworth-resources-provides-mnazi-bay-update\/","url_meta":{"origin":11419,"position":4},"title":"TANZANIA: Wentworth Resources Provides Mnazi Bay Update","author":"","date":"September 2, 2021","format":false,"excerpt":"Strong Operational Performance Reiterate increased production guidance range for the year of 70 - 80 MMscf\/day (gross) compared to previous guidance of 65 - 75 MMscf\/day Production at Mnazi Bay averaged 80 MMscf\/day (H1 2020: 58 MMscf\/day), the highest H1 production performance achieved to date Production capacity of existing wells\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/02\/Mnazi-Bay-Field.png?fit=478%2C561&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5725,"url":"https:\/\/www.oilnewskenya.com\/index.php\/wentworth-resources-reports-increased-gas-sales-in-tanzania\/","url_meta":{"origin":11419,"position":5},"title":"Wentworth Resources Reports Increased Gas Sales in Tanzania","author":"","date":"February 28, 2017","format":false,"excerpt":"Wentworth Resources in its latest update and Q4 2016 Financial Statements\u00a0has reported that the Mnazi Bay field achieved average gross daily gas production during the fourth quarter of 39.4 MMscf\/d up from 34.3 MMscf\/d during Q3 2016 due to less downtime experienced at the gas fired power generation facilities, Ubungo-II\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/05\/Wentworth-Resources.png?fit=375%2C286&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=11419"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11419\/revisions"}],"predecessor-version":[{"id":11421,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11419\/revisions\/11421"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/11420"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=11419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=11419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=11419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}