• Natural Gas News

    Tanzania Clears Ruvuma Farm-out

Summary

The long-delayed deal is now days from completion, according to Aminex.

by: Joe Murphy

Posted in:

Natural Gas & LNG News, Africa, Premium, Corporate, Mergers & Acquisitions, Exploration & Production, News By Country, Tanzania

Tanzania Clears Ruvuma Farm-out

London-listed Aminex announced on October 12 it had received approval from the Tanzanian government for the transfer of a 50% operating stake in the Ruvuma production-sharing agreement (PSA) to Omani-owned APA Petroleum Tanzania.

The long-delayed farm-out's completion is expected within the next few days, and will leave Aminex with a 25% interest. The remaining 25% is held by London-listed Solo Oil, although the company is seeking to divest from the project. The Ruvuma PSA includes the Ntorya gas discovery, estimated in a 2018 competent person's report to be 763bn ft3 in size.

Aminex has already received the $5mn in cash it is due under the farm-out deal, in the form of a $3mn advance and a $2mn loan from APA that is payable when the deal is sealed.