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LONDON (Alliance News) - Solo Oil PLC Friday said fellow London-listed Aminex PLC has nearly finished constructing a gas export pipeline at the Kiliwani North gas field in Tanzania, days after Solo acquired a stake in the project.
On Tuesday, Solo Oil said it purchased a 6.5% interest in the licence for USD3.5 million with the option to double its interest. Aminex is the operator of the license and currently holds a 58.5% stake in the project. RAK gas holds a 25% stake whilst Bounty Oil holds the remaining balance.
Solo has the option to double its stake in the project once a gas sales agreement has been finalised, and Solo said this should be signed before the pipeline and facilities are completed.
The deal still has to be approved by the Tanzanian authorities.
Solo Oil on Friday said Aminex has advised the company the construction of the gas export pipeline at the project has nearly been completed, connecting the Songo Songo processing plant to the KN-1 gas well. Only 20 metres currently lies between the pipeline and the well-head, said Solo Oil.
The KN-1 well, when connected to the export pipeline, is expected to produce at least 20 million cubic feet per day.
"As we reach the point of gas commercialisation we are naturally tracking the process very closely and shortly expect to see final hook-up and pressure testing get underway," said Neil Ritson, chairman of Solo Oil.
"With the imminent hook-up we also remain extremely confident that the gas sales agreement will be signed in time to commence exports of gas from the field as soon as the facilities are complete," he added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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