Significant resource upgrade29 Apr 2024 07:27
Ruvuma PSA's operator, APT, acquired, processed and interpreted 338 km2 of new 3D seismic in 2022 and 2023, resulting in the identification of significant additional potential gas volumes within the licence area. The most likely gas initially in place (GIIP) is now estimated to be 3.45 TCF. Furthermore, the 3D seismic dataset supports a substantial in place unrisked resource potential of 16.4 TCF. Such numbers place the discovery within the definition of a "world-class giant" gas field, generally accepted as being greater than 3 TCF recoverable.
Ntorya and any other gas fields found within the Ruvuma PSA can be developed far more quickly and for a significantly lower capital expenditure than current offshore LNG projects, which require the construction of offshore gas facilities, pipelines to shore and massive export terminals.
Crucially, Ruvuma gas can immediately service a fast- developing domestic market thanks to the GSA among TPDC, APT and Aminex (through Ndovu Resources Limited), which was signed in January 2024.
We expect a Development Licence will be issued by the Ministry of Energy very soon, enabling the Ruvuma partners to unlock the project's potential by starting both the drilling and construction work that will lead to first gas. The 25-year Development Licence will be the first such licence issued in Tanzania for 13 years and signifies the government's commitment to developing its onshore energy resources.
The TPDC is responsible for constructing the gas pipeline spur to Madimba and, we understand, it has made considerable progress. Given the importance the Tanzanian Government gives to receiving gas from Ntorya and the efforts of the TPDC, we expect the pipeline spur will be completed before the end of the first half of 2025, bringing revenues from the sale of Ntorya gas shortly thereafter.
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