Kinetiko receives IDC funding for the SA gas project
The state-owned Industrial Development Corporation of South Africa (IDC) has advanced the first funds towards its joint venture with Afro Energy, a subsidiary of Sydney-listed Kinetiko Energy, to develop gas assets in the Amersfoort region of South Africa, the Australian company said on April 5.
IDC has advanced 16.3mn rand ($0.91mn) out of its 70mn rand commitment to the joint venture as per the deal signed in April last year.
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The joint venture will develop a gas field in South Africa in two phases. The first will be the development of approximately 10 wells and the construction of a gas terminal with a gas treatment and processing plant, metering station and pipeline gathering system.
The second phase will comprise the commencement of gas production from existing wells and the development of a further approximately 10 wells along with the maintenance and expansion of facilities as required.
The investment and development will be conducted through an incorporated special-purpose vehicle named Afro Gas Development. The project is budgeted to cost approximately 155mn rand which will be contributed 45% (70mn rand) by the IDC and 55% (85mn rand) by Afro Energy. Kinetico said that Afro Energy has advanced 20mn rand as part of its contribution for its 55% ownership of the joint venture.