Morning Pzulba. Im a little confused as this story effects us in many ways. Yes its not expected until 2019 but once again more proof the government is planning to use gas for power production in a big way. It also mentions the Mtwara to Dar pipeline which will allow this project to work and is how our gas will be transported from the South where our largest gas field is located. Plus our gas and Orcas are the closest known proven gas accumulations to the new project. presumably you have military background before your retirement?
We were originally expecting 20mcf/d which is circa 3000 barrels of oil equivalent per day but now we've been told it could produce a bit more than 30mcf/d which is a whopping 4500 boepd. They will not want to produce at a greater rate so as not to risk the integrity of the well plus help maintain the longevity of production. The max output is 40mcf/d
Old presentations used to state a circa 18 year well life, I'm showing my age but they are now just discussing the expected full production rate of 4-5 years before depletion begins to kick in. The rates of depletion across local fields is very low and well life from similar wells has gone on far beyond a decade and are still producing. So do you really think NR would be investing over $5m in Kiliwani if he was only going to get his money back in 3 years and profit for 1 or 2 ?? The well life is only guestimated by specific calcs done within the CPR but I haven't known a CPR be correct yet. Lol. There was talk years ago about the Kiliwani well being connected to Songo Songo gas field hence they blocked us from producing for 8 years. The reservoirs are almost identical depths with just some small differences although our Kiliwani well is thought to have deeper to water cut than Songo which is good.
I understand the concerns and the uncertainty regarding well lifespan but realisticaly do you think that th TDPC would have sunk a load of money in the spur to KN if they thought it would only produce for 4-5 years? Maybe but unlikely in my view.... There would have been better options to sink their time and money into....
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.