Aminex reports that the process for the award of the Ntorya to Madimba Pipeline EPC contract is almost complete and the company expects to receive further news from the TPDC shortly. This results from the\u00a0Tanzania Petroleum Development Corporation (TPDC) restrictive tender for the procurement of an engineering, procurement and construction (EPC) contractor for the construction of the gas pipeline from the Ntorya gas field to the Madimba gas processing plant launched in\u00a0October 2024.<\/p>\n\n\n\n
“Following the signing of a Gas Sales Agreement and the award of the Development Licence in 2024, and with the anticipated award of the EPC contract for the Pipeline, there is now a clear path to monetisation of the Ntorya gas field.” Aminex says in its Ntorya Operations Update.
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On the field development plan Aminex reports that the operator ARA Petroleum has updated its field development plan (FDP) for the Ntorya project to reflect the results of the 3D seismic programme and the updated FDP has been presented to the TPDC for approval. Following production from the Ntorya-1 well (NT-1), Ntorya-2 well (NT-2) and the planned Chikumbi-1 well (CH-1), the FDP anticipates a phased development increasing the field production rate within around a five-year period from 60 mmscf\/d to 140 mmscf\/d to 280 mmscf\/d, subject to the necessary export routes and offtake markets being built and sourced for the additional production. This will be achieved through a drilling programme of an additional 13 wells in the coming decade.<\/p>\n\n\n\n
On the planned operational activities ARA Petroleum Tanzania (APT)), continues with the procurement and installation of processing facilities, flow lines, hook-up systems, manifolds and fiscal meters, to ensure the integrated development of the project and enable production from NT-2 into the Pipeline. The NT-2 well is scheduled to be ready to produce gas in time for the completion of the Pipeline. The drilling of CH-1 and workover of NT-1 are also planned to occur after the commencement of production from NT-2 and we await a further update from APT on the proposed drilling schedule once the EPC contract for the Pipeline is awarded.\u00b7 Other operational activities have been completed in recent months, including land acquisition and compensation relating to:<\/p>\n\n\n\n
o\u00a0\u00a0The CH-1 well pad and access road<\/p>\n\n\n\n
o\u00a0\u00a0Extension of the previous Ntorya-3 site for the construction of a workcamp and open yard storage area for operations<\/p>\n\n\n\n
o The upstream processing facilities<\/p>\n\n\n\n
o Rights of way for the NT-1 and NT-2 flowlines.<\/p>\n\n\n\n
\u00b7\u00a0\u00a0\u00a0All casings and tubulars necessary for the drilling of CH-1 and workover of NT-1 have been received, and the wellhead for CH-1 is ready for shipment.<\/p>\n\n\n\n
\u00b7 The work programme and budget for 2025 prepared and presented by APT to Aminex and the Tanzanian authorities was approved in November 2024. The total budget is over $41 million and includes all of the activities set out above.<\/p>\n\n\n\n
\u00b7 A very limited competent person’s report (CPR) was prepared for use by the TPDC to justify the construction of the pipeline. A full CPR over the Ntorya gas field is not likely to be commissioned until after the drilling of CH-1 and workover of NT-1.<\/p>\n\n\n\n
Charles Santos, Executive Chairman of Aminex commented:<\/strong><\/p>\n\n\n\n “I am pleased to say significant progress has been made on all fronts of the Ntorya gas development in recent months, following the award of the 25-year Development Licence last year. The Tanzanian government continues to express its full commitment to the project and we hope to receive confirmation of the award of the pipeline contract shortly. APT, meanwhile, is preparing the ground for first gas. <\/em><\/p>\n\n\n\n The important seismic results have allowed APT and Aminex to propose a more extensive and longer-term plan for Ntorya, including the additional drilling programme and consequent increased gas production, substantially increasing the potential value for Aminex shareholders. This Ntorya gas will also benefit the Tanzanian people considerably, increasing the reach and reliability of electricity supplies, supplanting dirtier fuels such as coal and wood, and helping boost the country’s industrialisation.<\/em><\/p>\n\n\n\n