Tanzania Speeds up Gas Payments: Wentworth
Oslo and AIM-listed Tanzania gas producer Wentworth Resources said July 19 that – since its update last month – it has received a further $1.2mn in payments for gas from Mnazi Bay in southern Tanzania from state-owned offtakers Tanzania Petroleum Development Corp (TPDC) and Tanzania Electric Supply Company (Tanesco).
That takes total cash received for invoiced gas sales to $7.9mn in 2017. It said the lag in payments from TPDC has remained consistent at four months, but that from Tanesco had improved from 13 months to eight months.
Wentworth's Calgary-based managing director Geoff Bury said: “We continue, along with our operator, Maurel & Prom (M&P), to work with the government to resolve the payment delays and clear all arrears. It is very encouraging to see production volumes increase post the end of the rainy season and we remain confident in achieving our production guidance for the year."
Daily production volumes during the rainy months of April and May were restrained by Tanzania’s available hydroelectricity production, said Wentworth, but since the end of the rainy season, demand for Mnazi Bay gas had increased with June volumes averaging 45mn ft3/d, taking the 2Q average to 31mn ft3/d (all production figures are for 100% equity). Production so far in July increased to 71mn ft3/d, because maintenance elsewhere on Tanzania’s pipeline system had increased the call on Mnazi Bay gas. However Wentworth maintains its guidance for full year 2017 at 40mn-50mn ft3/d.
Wentworth also said it does not expect to be affected by new rules and laws that have adversely affected some mining operations in Tanzania. It reports 2Q results on August 10.
Mnazi Bay production facilities, in Tanzania – not far from the Mozambican border – have capacity to produce up to 130mn ft³/d gross. Wentworth has 31.94% equity in the field, M&P as operator has 48.06%, and TPDC has 20%. Production started in August 2015.
Mark Smedley