Solo Oil Acquires Interest in Kiliwani Gas Field in Tanzania

Solo Oil on Tuesday announced that it has signed an agreement to acquire an initial 6.5% interest in Kiliwani North Development License in Tanzania from Ndovu Resources, a wholly-owned subsidiary of Aminex, for $3.5 million. 

The UK based company also has a 45 day option to increase its interest in the license by a further 6.5 percent to 13 percent.

The license contains Kiliwani North 1 well which is expected to produce at an approximate rate of 20 million cubic feet per day (mmscfd) in first half 2015. 

“This agreement, when closed, will represent a major landmark for Solo as it will give the company its first revenue from Tanzania,” Solo said. 

According to Solo, independently verified gross in-place unrisked mean gas resources of the well, computed by Isis Petroleum Consultants, are estimated as 45 billion cubic feet (bcf). 

Construction of the 2 km long pipeline from KN1 to the new Songo Songo gas processing plant has now commenced and is expected to be completed in early 2015.

The Songo Songo gas processing plant is connected with the newly constructed 36-inch gas pipeline from Mtwara in the south of Tanzania to Dar es Salaam, the national capital, in the north, and this provides an immediate route to monetise the Kiliwani North gas production.

Ndovu is in advanced negotiations for a gas sales agreement with the Tanzanian authorities and these negotiations are expected to be satisfactorily concluded in the near future, Solo stated.  

Solo and Aminex are already partners in the Ruvuma Production Sharing Contract in southern Tanzania, with respectively 25 percent and 75 percent working interests.