LONDON (Alliance News) - Solo Oil PLC and Aminex PLC Wednesday said Tanzanian Petroleum Development Corp has formally reported that the regional pipeline connecting Dar es Salaam to Mnazi Bay is now complete.
The pipeline is part of the companies' Kiliwani North Development joint venture. Aminex is the operator of the license with a 58.5% stake whilst Solo holds a 6.5% stake, with an option to increase it to 13%.
On February 18, both companies said the construction of the gas export pipeline at the Kiliwani North gas field had been completed, which has now been verified by the Tanzanian Petroleum Development Corp, through which the Ministry of Energy and Minerals implements its petroleum exploration and development policies.
The next step will be conducting hydrostatic pressure testing on the pipeline, which will test the pipeline for strength and leaks.
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 processing plant is currently being constructed, and the Tanzanian Petroleum Development Co has said it is 95% complete. Solo and Aminex are expecting commercial production of gas from Kiliwani North to start late in the first half 2015 with stabilized production rates achieved during the third quarter 2015.
"The project remains on track for first commercial sales in the mid-year and once the gas sales agreement comes into force we will consider our option to double our interest in the project from 6.5% to 13%," said Solo Chairman Neil Ritson.
Solo Oil shares were down 0.6% at 0.512 pence Wednesday morning, while Aminex shares were up 1.9% at 1.78p.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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