Aminex Makes Progress In Tanzanian Negotiations

LONDON (Alliance News) - Aminex PLC Thursday said gas sales negotiations between its Tanzanian subsidiary and the Tanzanian Petroleum Development Corporation are at an advanced stage and expected to be concluded before the end of the year.

The negotiations will mean that production from Kiliwani North will now be metered and sold directly at wellhead, which will save Ndovu Resources Ltd, Aminex's subsidiary, both the initial capital as well as ongoing operating expenditures in maintaining the tie-in line.

The oil and gas exploration, development and production company with operations in Tanzania, the US and Egypt said the Tanzanian Petroleum Development Corporation will pay for and construct the tie-in line from the new gas processing plant currently being constructed on Songo-Songo Island to Kiliwani North, as as part of the gas sales agreements being negotiated.

Ndovu has formally given its consent to the Tanzanian Petroleum Development Corporation to carry out the task.

Meanwhile, Aminex said the major regional pipeline project to Dar es Salaam, Tanzania, financed by the Chinese Export Import Bank, is "approximately on schedule, reconfirming that first commercial gas is expected onstream in early 2015, as previously advised by the company."

Aminex was able to give the update after being advised by the Tanzanian Petroleum Development Corporation.

Aminex shares were Thursday quoted at 2.26 pence, up 5.2%.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

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