![\"Mnazi](\"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/01\/Mnazi-Bay-Field.png?resize=478%2C561&ssl=1\")
<\/a>The Kiliwani North GSA allows for the expected depletion of production from the field over time TPDC in every contract year required to purchase, take delivery of or pay for a pre-determined volume of gas.<\/p>\nIn the event that TPDC elects not to take delivery of the pre-determined volume, it will pay for the equivalent of 85% of the agreed commercial rate of gas to be supplied, adjusted each year in accordance with the terms of the GSA.<\/p>\n
Gas from Kiliwani North will be supplied to the recently completed Songo Songo gas processing plant.<\/p>\n
Currently final well preparations are ongoing nearing completion prior to testing and commissioning of the new plant.<\/p>\n
During this phase production rates will be varied to optimise well life and establish commercial rates. During the testing and commissioning phase, the TPDC will be invoiced for gas produced at the end of each month and will be required to pay on invoice.<\/p>\n
The start of commercial operations will be mutually agreed between the TPDC and the Company after testing and commissioning has been completed. Each month, the TPDC will be required to pay one month\u2019s revenues in advance, secured with a letter of credit issued by the Tanzania Investment Bank.<\/p>\n
Monthly revenues will be calculated based on actual production, and adjustments will be made at the end of each month for any discrepancy between estimated and actual throughput.<\/p>\n
Gas will be sold at US$3.00 per mmbtu (approximately US$3.07 per mcf) and the price will be adjusted annually by applying an agreed United States Consumer Price Index.<\/p>\n
The gas price is not linked to any commodity price so is unaffected by current commodity market conditions. Gas revenues will be invoiced and payable in United States Dollars and the gas delivery point will be at the outlet flange of the Kiliwani North wellhead.<\/p>\n
By selling the gas at the wellhead, the joint venture partners will not be responsible for pipeline transportation and processing fees.<\/p>\n
According to Aminex Chief Executive Jay Bhattacherjee says the Kiliwani North Gas Sales agreement represents a major milestone as the Company\u2019s first commercial production in Tanzania.<\/p>\n
\u201cAchieving this agreement has been a long time coming but the final version is comprehensive and will allow production to commence with clarity and security. We are grateful to shareholders for their support and patience. With a mix of production from Kiliwani North and upcoming appraisal and development drilling in the highly prospective Ruvuma basin, we consider Aminex to be well placed for further growth.\u201d<\/p>\n
Shareholders have been reminded that Solo Oil plc retains an option to purchase a further 6.5% stake in the KNDL (before TPDC back-in) for a period of 30 days following signing of the GSA, according to the terms of an agreement previously advised to shareholders.<\/p>\n
“We are delighted to start 2016 with the milestone signing of the Kiliwani North Gas Sales Agreement. \u00a0Gas production can now start, leading to the first revenues from our investments in Tanzania. \u00a0We also look forward to further successes in Tanzania during 2016 with the planned appraisal drilling on the Ntorya discovery in the Ruvuma PSC,”Neil Ritson, Solo’s Chairman Commented.<\/p>\n
As previously announced, Bowleven and Aminex have signed a Heads of Terms agreement for future cooperation in Tanzania, including Bowleven\u2019s participation in Kiliwani North, which remains subject to shareholder and all regulatory approvals.<\/p>\n
Participants in the Kiliwani North Development Licence are: Ndovu Resources Ltd (Aminex) 55.575% (operator), RAK Gas LLC 23.75%, Bounty Oil & Gas NL 9.5%, Solo Oil plc 6.175% and TPDC 5%.<\/p>\n","protected":false},"excerpt":{"rendered":"
Aminex is set to start first production in Africa following reports that it has executed a fully-termed Gas Sales Agreement (GSA) with the Tanzania Petroleum Development Corporation (TPDC) for its … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":3881,"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":[11],"tags":[137,3917,344,961,1321,3527,2119,2342,3918,2472,2543],"class_list":["post-4246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-aminex","tag-bounty-oil-gas","tag-bowleven","tag-gas-sales-agreement","tag-kiliwani-north","tag-ndovu-resources","tag-rak-gas","tag-solo-oil","tag-tanzania-investment-bank","tag-tanzania-petroleum-development-corporation","tag-tpdc","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/10\/Kiliwani-North-2.png?fit=313%2C402&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-16u","jetpack-related-posts":[{"id":3873,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tpdc-to-acquire-5-interest-in-the-kiliwani-north-license\/","url_meta":{"origin":4246,"position":0},"title":"TPDC to acquire 5% interest in the Kiliwani North License","author":"","date":"October 5, 2015","format":false,"excerpt":"Aminex has said that the Tanzania Petroleum Development Corporation (TPDC) has notified the Company of its intention to acquire a 5% working interest in the Kiliwani North Development (KNDL) and will become a full working interest partner going forward. Under the terms of the Nyuni East Songo-Songo Production Sharing Agreement\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\/2014\/10\/kiliwani-north.jpg?fit=498%2C565&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3271,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzanias-kiliwani-north-gas-agreement-signed-q3-2015\/","url_meta":{"origin":4246,"position":1},"title":"Tanzania\u2019s Kiliwani North Gas Agreement to be Signed in Q3 2015","author":"","date":"August 26, 2015","format":false,"excerpt":"Production from the Kiliwani North Field could start in 2015 with the Tanzanian authorities having advised that production should start within Q3 2015 now that the main pipeline has been pressure tested and with the Gas Agreement expected to be signed this quarter. The completion of a Gas Sales Agreement\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\/2014\/10\/kiliwani-north.jpg?fit=498%2C565&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5059,"url":"https:\/\/www.oilnewskenya.com\/index.php\/aminex-receives-first-payment-for-gas-produced-from-tanzanias-kiliwani-north-1-well\/","url_meta":{"origin":4246,"position":2},"title":"Aminex receives first payment for gas produced from Tanzania’s Kiliwani North-1 Well","author":"","date":"August 18, 2016","format":false,"excerpt":"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\u2019s Gas Sales Agreement (GSA) with\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\/2016\/07\/kiliwani-north-well.png?fit=525%2C519&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/07\/kiliwani-north-well.png?fit=525%2C519&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/07\/kiliwani-north-well.png?fit=525%2C519&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":2577,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-draws-closer-gas-production-kiliwani-north-1-well\/","url_meta":{"origin":4246,"position":3},"title":"Tanzania draws closer to gas production from the Kiliwani North 1 well","author":"","date":"February 19, 2015","format":false,"excerpt":"Aminex has notified shareholders that the Tanzanian Petroleum Development Corporation (TPDC), through its contractors, has now begun constructing the Skid Metering Unit within the boundaries of the Kiliwani North Development Licence (KNDL) and have completed laying pipe to the KNDL boundary. Once construction is complete the Kiliwani North 1 well\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\/2014\/10\/kiliwani-north.jpg?fit=498%2C565&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":11004,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-aminex-reaches-agreement-with-tpdc-for-past-gas-sales\/","url_meta":{"origin":4246,"position":4},"title":"TANZANIA: Aminex Reaches Agreement with TPDC for Past Gas Sales","author":"","date":"October 18, 2021","format":false,"excerpt":"Aminex has announced that it has reached an agreement with the Tanzania Petroleum Development Corporation (TPDC) for the payment of outstanding monies owed for past gas sales to the TPDC, resulting in a net cash inflow to the Company of approximately US$1.85 million. Aminex and the TPDC have been engaged\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\/10\/Tanzania-Aminex.png?fit=443%2C537&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4316,"url":"https:\/\/www.oilnewskenya.com\/index.php\/kiliwani-north-1-well-set-for-production-starting-mid-february\/","url_meta":{"origin":4246,"position":5},"title":"Kiliwani North 1 Well Set for production starting mid-February","author":"","date":"February 1, 2016","format":false,"excerpt":"Aminex has informed its shareholders the Tanzanian Petroleum Development Corporation has advised Kiliwani North-1 well could start production in mid February and is currently undergoing final well integrity testing prior to first production. This development follows the signing of a Gas Sales Agreement (GSA) in January which saw the gas\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\/2016\/02\/Kiliwani-North.png?fit=379%2C538&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\/4246","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=4246"}],"version-history":[{"count":3,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4246\/revisions"}],"predecessor-version":[{"id":4250,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4246\/revisions\/4250"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/3881"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=4246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=4246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=4246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"Mnazi](\"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/01\/Mnazi-Bay-Field.png?ssl=1\")
<\/a>The Kiliwani North GSA allows for the expected depletion of production from the field over time TPDC in every contract year required to purchase, take delivery of or pay for a pre-determined volume of gas.<\/p>\n