Tanzania Approves Changes in Solo Oil's Ruvuma Basin PSA

Solo Oil has received approval from Tanzanian Petroleum Development Corporation (TPDC), the state oil company of Tanzania, for variation of the terms of its Ruvuma Basin Production Sharing Agreement (PSA).

This variation will allow the drilling which was due to be completed in the current first extension period, expiring later this year, to be deferred until the second extension period which expires in late 2016, Solo Oil said.

Aminex as operator, in collaboration with Solo, is currently conducting a farm-out process to introduce a new partner into the venture so as to explore the Ruvuma PSA as comprehensively as possible. As previously announced discussions with a number of interested parties are continuing.

The Ruvuma PSA covers approx. 6,000 km², comprising the onshore section of Tanzania's Ruvuma Basin, but also including sections of shallow water marine areas and a small section of deep water.

In 2012, Solo and Aminex made a commercial discovery of natural gas and condensate at the Ntorya-1 well in the Ruvuma PSA. Further appraisal of Ntorya-1 is planned along with further exploration for gas and oil.

The Chinese-funded pipeline from Mtwara to Dar es Salaam, which is presently under construction, passes through the PSA area and could provide a ready access to a growing gas market, Solo said.