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LONDON (Alliance News) - Aminex PLC and Solo Oil PLC Monday said the Kiliwani North development in Tanzania is firmly within the commissioning phase that will see production rise from current levels after the pair produced their first gas from the asset in early April.
The two London-listed companies began producing gas from Kiliwani North on April 6 and said Monday that the power generation system and other auxiliary facilities have been commissioned whilst the gas plant and subsea pipeline are currently being commissioned.
Production from the asset is expected to increase up to 30.0 million standard cubic feet of gas per day during the commissioning phase, which is equal to around 4,000 to 5,000 barrels of oil equivalent per day.
Previously, the pair said production would rise to a range of 25.0 to 30.0 million standard cubic feet. All production is currently coming from the Kiliwani North-1 well.
All of the gas produced during the commissioning phase is being sold to the state-owned oil company for USD3.00 per million British thermal units, roughly USD3.07 per million cubic feet. That price is not linked to any commodity price so it will not be affected by current market conditions.
"Initial production rates remain 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," said the pair in separate but identical statements.
"Together with Tanzania Petroleum Development Corp the company plans to conduct a well test during the production build up to determine the optimal flow rate. It is this optimal flow rate that will become the commercial production rate and the company intends to flow gas at this rate for as long as possible prior to a natural decline in production," they added.
Aminex is the operator of Kiliwani North with a 54.575% stake whilst Solo Oil holds a 7.175% interest.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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