Kinetiko ropes in investor for SA gas project
Perth-based Kinetiko Energy, through its subsidiary Afro Energy, has executed agreements with the Industrial Development Corporation of South Africa (IDC) to co-develop a gas production field estimated to comprise up to 20 wells, it said on April 4.
The IDC is a wholly-owned subsidiary of the South African government mandated to promote economic growth and industrial development in the country. It will contribute 70mn rand ($4.78mn) for a 45% interest and Afro will contribute 85mn for 55% interest in a joint development entity, Afro Gas Development.
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“Kinetiko’s vision of becoming a major player in South African onshore gas production has today taken a significant step forward with agreements being finalised with the IDC, a leading national development finance institution, to co-invest in the development of a gas field adjacent to the company’s existing Amersfoort wells,” executive chairman Adam Sierakowski said.
The gas field development will be undertaken 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.