Tanzania 'Agrees' Ruvuma Extension

State-owned Tanzanian Petroleum Development Corporation (TDPC) has approved a one-year extension of the largely onshore Ruvuma production sharing agreement (PSA) in the far south of Tanzania, which had been due to expire late December 2016, said UK-based Aminex on June 27, although the PSA extension still requires ministerial approval and signature.

Aminex operates the Ruvuma PSA with a 75% interest while fellow UK firm Solo Oil holds 25%; it includes the Ntorya-1 gas-condensate discovery that has been independently ascribed 70bn ft³ of gross contingent (2C) resources.  

Aminex also said it has completed discussions with TPDC with regards to transferring the drilling obligations in the northern Lindi Licence covered by the Ruvuma PSA into the southern Mtwara Licence, which includes the appraisal area for the Ntorya discovery. With TPDC’s support, the transfer of the Lindi drilling obligations to the Mtwara licence area is also being processed for ministerial approval and signing. Thereafter, Aminex intends to drill the Ntorya-2 well to satisfy the appraisal drilling obligation and then to apply for a 25-year development licence if successful.

Aminex CEO Jay Bhattacherjee said June 27: “We are also pleased to have signed an 18-month extension to our corporate loan with no other variation in terms. We continue to make significant progress at Kiliwani North and to focus on our development of the Ruvuma basin."

The Aminex-operated Ruvuma onshore PSA in the far south of Tanzania (Map credit: Aminex)

Speaking to NGA earlier this month, he said that Aminex is ready to drill the first of two appraisal wells there – each likely to cost some $13mn gross – 1.5 km from the Ntorya-1 discovery well, with a second well to be drilled either late 2016 or early 2017, in order to get an early production system going.

Separately, on June 22 Oslo and AIM-listed Wentworth Resources secured approval from the Mozambican government for its two-year appraisal plan as operator at the 2,500 km² Rovuma onshore concession onshore northern Mozambique -- just over the border from southern Tanzania.

Mark Smedley | www.naturalgasafrica.com