Hi guys, apologies for late reply but currently in the middle of the bank holiday haze :-)
The Kiliwani well is set off as security against the drilling of wells in the larger Ruvuma block on a sliding scale. However, this drill obligation for the Ruvuma Ntorya area has the right to extend this drill commitment for up to 3 years. This legislation was created in the midst of the gas exploration boom in Tanzania when times were very different. Many large companies have now pulled exploration spending in the area so the outlook is very different. The TPDC now requires huge amounts of gas to power the country with very few options to acquire this. Aminex is therefore becoming a very important part of this process with the huge upside available in the Ruvuma block, which is very close to the new Chinese pipeline. The TPDC want Aminex to concentrate on Ntorya area to increase the chances of a secure gas supply being available from our acerage. We've already proven commercial gas in the area and the largest discovery of Light oil in the country. So the TPDC will be keen to broker a deal to balance risk and reward and therefore see Ntorya go into early production. When speaking to the BOD it was very apparent that this process is already well advanced and imho we could see a new agreement signed in the current trip to Tanzania. This is more a paperwork exercise than any real threat to our company but it will clearly appease the market once the deal is done, as nothing is guaranteed in Tanzania, or the rest of the world in fact.
Hope that helps.
Have a great weekend all and enjoy our amazing British weather!!
Interesting articles from 2 days ago, perhaps the trip over is to sign up some local interests,Jay's time spent over in Tanzania in the past could now be paying dividends.
The Local Content Policy, 2014 and the Petroleum Act, 2015 are two important instruments which the Government should employ in promoting participation of Tanzania into natural gas economy. The Petroleum Act, 2015, requires that goods and services in the petroleum industry should be provided by the Tanzanian/local companies.
The Act further requires that where there are no local providers, then such goods and services must be provided by a foreign company in joint venture with the local company, with the local company having at least 25 per cent of the shares.
This is indeed a great opportunity for Tanzanians to participate in the natural gas economy and uplift themselves from poverty. Most Tanzanians are not aware of this tremendous opportunity, therefore it is important that mandated entities such as PURA must educate people on this opportunities by implementing the Act, Our country is blessed with significant natural gas. We can make sure this resource becomes a blessing rather than a curse which has plagued other countries.
The previous government has done its best to promote investment in the country and create comprehensive legal framework for management of petroleum resources.
Raphael Mgaya is an Advocate of the High Court, holds an LLB (Hons), LLM (International law), LLM (Oil and Gas law); MBA (Corporate Management).
Slickchic,firstly welcome to the mad house,sorry I mean the AEX board.I am afraid I can't answer your question,however one of the boffins will get back to you no doubt I am sure.Hope you are invested here and good luck .
RE RNS 3/2/14 Anybody know what security is held over the Killwani licence as the way I read it, four wells need to be drilled by the end of 2016 on the Ruvuma licence before security can be fully cancelled on Killwani.
Strange proposition to say Ritson should not be therein Tanzania. He represents a party to the licence and if they are amending it they might need his signature. I agree that does not mean he has to be in Tanzania but hopefuly they are schmoozing too!
Tanzania’s energy industry is set to see a big boost in investment according to Kassim Majaliwa, the country’s prime minister. The government plans to be investing $1.9 billion per year by 2025 in energy projects to bring about an end to power shortages and boost industrial growth.
..as neither rep from the other KN partners was mentioned (Bounty or RAK Gas) I am assuming this trip has to do with Ruvuma where AEX and SOLO are partners - makes sense that both company heads are there.
Of course NR has every right to be kept informed,it is however a shame that us PI's are not shown the same curtesy,I trust that this trip is for both of them to tie up loose ends,raise some funds and then progress to the benefit of both Co's. Would be interesting to know who else is out there looking for a piece of the action.
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