Aminex receives approval to sell stake in Tanzanian licence

Posted on : Friday , 2nd January 2015

Aminex has announced that it would sell up to 13 per cent interest in the Tanzania’s Kiliwani North Development Licence (KNDL) to Solo Oil for US$7mn

The company has received no objection from the Tanzanian Ministry of Energy and Minerals and said that the completion of the initial 6.5 per cent interest remained subject only to a formal deed of assignment being signed by all participating parties.

Solo Oil and Aminex have agreed to extend the deadline on the purchase of the initial and the additional 6.5 per cent to 30 January 2015.

The KNDL contains the Kiliwani North-1 (KN1) well, which is expected to start production at approximately 566,337 cu/m per day in early 2015. Once deed was completed, the KNDL joint venture partners would be Aminex with 52 per cent stake, RAK Gas with 25 per cent stake, Bounty Oil holding 10 per cent and Solo Oil with the remaining 13 per cent.

Aminex chairman Neil Ritson said, “The final step in the process of receiving approvals to our acquisition of an interest in the soon to be producing Kilwani North development has now been received and we look forward to signature of the gas sales agreement and to the start-up of the production in 2015.”

Independently verified resources at KNDL have been estimated to be 1.2bn cu/m of gas-in-place. According to the company, the construction of a two km pipeline from KN1 wellhead to the new Songo Songo processing plant has also commenced and was expected to be completed by the end of 2014.

Aminex and Solo Oil are already partners in the Ruvuma Production Sharing Contract in Tanzania, with respectively 75 per cent and 25 per cent interests, where gas was discovered in 2012 at Ntorya-1. Aminex’s completely owned subsidiary Ndovu Resources Limited is the operator of both the Ruvuma Production Sharing Agreement and the KNDL.

Source : OIL REVIEW AFRICA

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