Wentworth Says Tanzania Payments Improving

Canada-based east Africa-focused Wentworth Resources said payments for its Tanzanian gas are getting prompter, gas demand is growing, and it is seeking a farm-in partner onshore Mozambique.

The Oslo and AIM-listed company said February 28 it made a net loss of $0.42mn in 4Q 2016 compared with a profit after tax of $32.81mn in 4Q 2015 which included a non-cash deferred tax recovery of $34.34mn.

Mnazi Bay gross field production in Tanzania has averaged 44mn ft³/d in the first two months of 2017, in line with guidance of 40-50 mn ft³/d for 2017, having achieved 39.4mn ft³/d in 4Q2016 and 34.3mn ft³/d in 3Q 2016 as less downtime was experienced at gas-fired power plant offtakers.

Managing director Geoff Bury said that new demand from a local cement factory and a ceramics facility is expected during 2017, adding: “We expect a material increase in gas demand beginning in 2018 when the new Kinyerezi-I expansion and Kinyerezi-II power plants are commissioned.”

Mnazi Bay production facilities are now fully invested with capacity of up to 130mn ft³/d gross, said Wentworth which has a 31.94% stake in the field. Pertamina-owned Maurel & Prom is operator with 48.06% while Tanzanian state TPDC has 20%; production started in August 2015.

Over the border, in the Rovuma basin onshore Mozambique, Wentworth said appraisal of its Tembo gas discovery “is expected to commence once industry partners are secured” but that there would be no significant increase in capex there during 2017. “We’d expect a significant carry for any farm-in”, noted Bury in view of how many majors are active in the offshore Rovuma basin.

Mark Smedley