Kiliwani North gas field: first gas production

Aminex PLC has announced the first gas production from its Kiliwani North gas field in Tanzania. The Kiliwani North Development Licence is operated by a wholly-owned subsidiary of the Company with a 55.575% working interest (expected to reduce to 51.75% as a result of a partial disposal announced on 4 April 2016) and the field will provide the Company with its first significant African production revenues.

Highlights:

• Initial production began from the Kiliwani North-1 well (“KN-1”) on 4 April. KN-1 is tied into the regional pipeline infrastructure and will deliver gas to the new adjacent Songo Songo processing plant, ultimately serving the local power market.
• Production is expected to build up to an anticipated production rate of 25-30 million ft³/d (approximately 4-5000 boe/d gross) (“Commercial Production Rate”) over the next 90-100 days.
• All gas produced during the build-up to full production rates will be paid for under the terms of a recently signed Gas Sales Agreement signed with the sole buyer, Tanzania Petroleum Development Corp. (TPDC).

Initial production rates will be managed to allow for testing and commissioning of the gas processing plant and pipeline, while recording critical pressure and flow rate measurements to determine the optimal flow rate to maximise the life of the reservoir.

KN-1 represents contingent resources (2C) of gross 28 billion ft³ gross.

Aminex CEO, Jay Bhattacherjee, commented: “This is a significant moment for Aminex, its shareholders and Tanzania, and is the culmination of a tremendous amount of hard work by all involved. First gas at Kiliwani North marks the transition of the Company from developer to producer in Africa and sets us on the path for growth as we begin to generate cash. The Company looks forward to its exciting appraisal and development programme in the Ruvuma Basin which will potentially add further revenues in due course.”

Edited from press release by Angharad Lock

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/06042016/first-gas-production-from-kilwani-north-581/