{"id":4551,"date":"2016-04-06T13:43:45","date_gmt":"2016-04-06T13:43:45","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4551"},"modified":"2017-01-25T10:33:32","modified_gmt":"2017-01-25T10:33:32","slug":"gas-production-commences-at-tanzanias-kiliwani-north-gas-field","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/gas-production-commences-at-tanzanias-kiliwani-north-gas-field\/","title":{"rendered":"Gas Production Commences at Tanzania’s Kiliwani North Gas Field"},"content":{"rendered":"

Operator at the the Kiliwani North Development Licence\u00a0 Aminex has announced gas production from its\u00a0Kiliwani North gas field\u2019s Kiliwani North-1 well (‘KN-1’) \u00a0in Tanzania has commenced on schedule as had earlier been announced<\/a>.<\/p>\n

According to Aminex production is expected to build up to an anticipated production rate of 25-30 mmcfd (approximately 4-5,000 barrels of oil equivalent per day gross) over the next 90-100 days.<\/p>\n

KN-1 is tied into the regional pipeline infrastructure and will deliver gas to the new adjacent Songo Songo processing plant, ultimately serving the local power market.<\/p>\n

The gas delivery point is to be at the outlet flange of the Kiliwani North wellhead and, by selling the gas at the wellhead, the joint venture partners will not be liable for pipeline transportation and processing fees.<\/p>\n

Aminex adds that all gas produced during the build-up to full production rates will be paid for under the terms of a recently signed Gas Sales Agreement<\/a> signed with the sole buyer, Tanzania Petroleum Development Corporation (‘TPDC’).<\/p>\n

Aminex will receive US$3.00 per mmbtu (approx. US$3.07 per mcf) with expected net cash revenues of US$10-15 million per annum.<\/p>\n

\u201c First gas at Kiliwani North marks the transition of the Company from developer to producer in Africa and sets us on the path for growth as we begin to generate cash.\u00a0 The Company looks forward to its exciting appraisal and development programme in the Ruvuma Basin which will potentially add further revenues in due course,’ says Aminex CEO, Jay Bhattacherjee.<\/p>\n

Initial production rates will be carefully managed to allow for testing and commissioning of the gas processing plant and pipeline, while recording critical pressure and flow rate measurements to determine the optimal flow rate to maximize the life of the reservoir.<\/p>\n

Together with TPDC Aminex adds it plans to conduct a well test during the production build up to determine the optimal flow rate that will become the Commercial Production Rate from which the Company intends to flow gas at this rate for as long as possible prior to a natural decline in production.<\/p>\n

KN-1 represents contingent resources (2C) of gross 28 billion cubic feet gross. With first production complete Aminex expects to book reserves for Kiliwani North later this year.<\/p>\n

“Solo is delighted to see its investment in the Kiliwani North project move into production. This is a truly transformational step for the Company. Resulting revenues will initially be reinvested in growing our reserves base in Tanzania, a country which has new national gas infrastructure and huge prospects for growth in the local gas market.\u00a0 Solo also looks forward to progress on the Ntorya appraisal in the Ruvuma PSC where a substantially larger gas discovery has been made and where Solo already holds a 25% working interest,” says Solo’s Chairman Neil Ritson.<\/p>\n

Current participants in the Kiliwani North Development Licence, following TPDC back in<\/a>, are: Ndovu Resources Ltd (Aminex) 55.575% (operator), RAK Gas LLC 23.75%, Solo Oil plc 6.175%, Bounty Oil & Gas NL 9.5% and TPDC 5%.\u00a0 On completion of the payments envisaged by the SPA<\/a> Aminex will hold 51.75% and Solo will hold 10%.<\/p>\n","protected":false},"excerpt":{"rendered":"

Operator at the the Kiliwani North Development Licence\u00a0 Aminex has announced gas production from its\u00a0Kiliwani North gas field\u2019s Kiliwani North-1 well (‘KN-1’) \u00a0in Tanzania has commenced on schedule as had … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1913,"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":[137,3917,1322,2777,4314,2119,2343,2369,2466,2472,4313],"class_list":["post-4551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-aminex","tag-bounty-oil-gas","tag-kiliwani-north-development-licence","tag-kiliwani-north-gas-field","tag-kn-1","tag-rak-gas","tag-solo-oil-plc","tag-songo-songo-processing-plant","tag-tanzania","tag-tanzania-petroleum-development-corporation","tag-tpdc-ndovu-resources-ltd","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/kiliwani-north.jpg?fit=498%2C565&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1bp","jetpack-related-posts":[{"id":4496,"url":"https:\/\/www.oilnewskenya.com\/index.php\/commissioning-of-tanzanias-songo-songo-island-gas-set-for-april-2016\/","url_meta":{"origin":4551,"position":0},"title":"Commissioning of Tanzania\u2019s Songo Songo Island gas plant Set for April 2016","author":"","date":"March 15, 2016","format":false,"excerpt":"The Tanzania Petroleum Development Corporation (TPDC) has provided a revised work schedule in the \u00a0Kiliwani North license and informed the operator Aminex that the commissioning of the Songo Songo Island gas plant is expected to commence in early April. Aminex which concluded the final well integrity testing of the Kiliwani\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\/11\/kiliwani-north-1-well.png?fit=493%2C556&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2416,"url":"https:\/\/www.oilnewskenya.com\/index.php\/export-pipeline-from-songo-songo-processing-plant-to-kn-1-gas-well-complete\/","url_meta":{"origin":4551,"position":1},"title":"Export pipeline from Songo Songo processing plant to KN-1 gas well complete","author":"Samuel Kamau Mbote","date":"February 6, 2015","format":false,"excerpt":"Aminex plc the operator of the Kiliwani North gas field in Tanzania's Kiliwani North Development Licence, has advised the partners that the newly constructed gas export pipeline from the Songo Songo processing plant to the KN-1 gas well has been completed to within approximately 20 metres from the KN-1 production\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\/08\/songo-songo2.png?fit=465%2C546&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4802,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzanias-kiliwani-north-well-reaches-30-mmcf-per-day-during-commissioning\/","url_meta":{"origin":4551,"position":2},"title":"Tanzania\u2019s Kiliwani North well reaches 30 mmcf per day during commissioning","author":"","date":"July 4, 2016","format":false,"excerpt":"Aminex has announced that over the weekend, gas production from the Kiliwani North-1 well in Tanzania reached 30 mmcf per day (approximately 5,000 barrels of oil equivalent per day) with stable pressure recordings at that rate. Aminex adds that the commissioning process is expected to be concluded with the testing\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":4551,"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":5059,"url":"https:\/\/www.oilnewskenya.com\/index.php\/aminex-receives-first-payment-for-gas-produced-from-tanzanias-kiliwani-north-1-well\/","url_meta":{"origin":4551,"position":4},"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":4740,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzanias-kiliwani-north-well-commissioned\/","url_meta":{"origin":4551,"position":5},"title":"Tanzania’s Kiliwani North Well Commissioned","author":"","date":"June 6, 2016","format":false,"excerpt":"The Kiliwani North production license operator Ndovu Resources Limited (a subsidiary of Aminex plc) has announced that initial production that\u00a0started in April and the first Kiliwani North-1 (KN-1) gas was processed and entered the pipeline system connecting the Songo Songo plant with the national pipeline on 2nd June. This follows\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\/4551","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=4551"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4551\/revisions"}],"predecessor-version":[{"id":4552,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4551\/revisions\/4552"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/1913"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=4551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=4551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=4551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}