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LONDON (Alliance News) - Aminex PLC and Solo Oil PLC Wednesday said construction of a gas export pipeline at the Kiliwani North gas field in Tanzania has now been completed, and construction of the Skid Metering Unit in the Kiliwani North Development Licence has begun.
Aminex is the operator of the Kiliwani North Development Licence and currently holds a 58.5% stake in the project. Solo Oil holds a 6.5% interest, while RAK Gas holds a 25% stake and Bounty Oil holds the remaining interest.
London-listed oil and gas explorers Aminex and Solo Oil said that once construction is complete, the Kiliwani North 1 well will be connected to the new Songo Songo processing plant where the gas, once produced, will be processed prior to being transported and sold in the new Dar es Salaam to Mnazi Bay pipeline.
The initial production rate expected from the Kiliwani North development is 20 million cubic feet per day, when the KN-1 well is brought on stream. Amines says that independently verified resources at Kiliwani North are estimated to be 45 billion cubic feet of gas in place.
In a statement, Aminex said that the finalisation of the long-anticipated gas sales agreement for its Kiliwani North gas field is largely completed, but has been delayed in closing due to the Tanzanian authorities' approval process.
"Your board expects the gas sales agreement to be signed prior to any gas being delivered for pressure testing or commissioning and the company will accordingly continue to keep the market informed on progress," Aminex said in a statement.
Solo Oil shares were up 2.8% at 0.560 pence Wednesday morning, while Aminex shares were down 4.9% at 1.95 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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