(Alliance News) - Both Aminex PLC and Scirocco Energy PLC said on Monday noted the Tanzanian government's commitment to developing additional gas resources on the Ruvuma asset "as soon as possible".
The Africa-focused oil and gas company and Leeds-based investment company both said Medard Kalemani, Tanzanian energy minister and managing director of the Tanzania Petroleum Development Corp, committed to develop additional gas resources as soon as possible at an event on November 25, where an addendum was signed to the Ruvuma production sharing agreement.
Shares in Aminex were up 20% to 1.20 pence in London on Monday midday, while Scirocco shares were down 6.6% to 0.22p.
The addendum included a commitment to accelerate production on the Ruvuma asset, which both Aminex and Scirocco have a 25% interest in, as it will reportedly play a key role towards Tanzania's short to medium-term gas needs.
This is alongside constructing a 30 kilometre pipeline to connect the Ntorya gas field into the existing Madimba processing and pumping station in the next six to nine months.
Aminex is carried throughout the ongoing work programme to a maximum gross capital expenditure of USD140 million, or USD35 million net to the company. The carry is expected to see Aminex through to the start of commercial gas production from the Ntorya gas field at zero cost, with commencement currently scheduled for early 2024.
"The Ruvuma PSA Addendum is just the latest demonstration of the determination of all parties to work constructively and rapidly together to advance this significant project for the further development of the Tanzanian energy sector," said Aminex Executive Chair Charles Santos.
On November 1, Scirocco said it awaits the completion of its sale agreement for its 25% interest at Ruvuma to ARA Petroleum Tanzania.
"As we progress towards the completion of the divestment of Scirocco's interest in Ruvuma to APT, the above is a positive step which supports the development of the Ruvuma licence in due course and therefore the payment of the contingent elements associated with that transaction," said Scirocco Chief Executive Officer Tom Reynolds.
By Greg Rosenvinge; gregrosenvinge@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.