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.
The assignment of this working interest will be subject to TPDC:
- reimbursing the Joint Venture Partners with TPDC’s proportionate share of development capital expenditure on the licence to date; and
- becoming a party to the KNDL Joint Operating Agreement.
We are pleased and encouraged to welcome TPDC as a working interest partner in Kiliwani North. By exercising this option, TPDC confirms the importance to Tanzania of gas from the Kiliwani North project and aligns its interests with those of the joint venture partners,” says Aminex CEO, Jay Bhattacherjee.
Once concluded, Aminex’s interest in the KNDL will become 55.575% (current interest 58.5%).
The KNDL contains the Kiliwani North gas field which the Company expects to produce initially at up to approximately 30 mmcfd. Production from Kiliwani North will be a significant milestone for Aminex.
The KN-1 well has now been tied into the main pipeline infrastructure and is awaiting completion of the adjacent Songo Songo processing plant.
Aminex adds it has been advised that this will be completed shortly and commissioning gas is to be produced thereafter.
The partners who also consist of Ndovu Resources Ltd (Aminex) 58.5% (operator), Solo Oil 6.5%, RAK Gas LLC 25%, and Bounty Oil & Gas NL 10% are still waiting the signing of the Gas Sales Agreement although terms have been largely completed for some time with the final payment protection terms yet to be agreed on to enable the GSA to be signed.
Solo holds an option to increase its interest in the KNDL by 6.5% to a total of 13% once the GSA is signed for a further payment of US$3.5 million to Aminex. This option will also be subject to TPDC back-in once concluded. Following TPDC back-in Solo would then hold a 12.35% working interest in the Licence while Bounty’s interest in the KNDL will become 9.5% (current interest 10.0%).