Solo Oil, Aminex Talk Gas Sales from Tanzania Well

Solo Oil and Aminex announced earlier this week that negotiations were underway with the Tanzanian government to begin the sale of gas from the Ruvuma Basin project into a new pipeline, Interactive Investor has reported.

A 36-inch pipeline is being constructed between Mtwara and Dar es Salaam to ease congestion in the exiting Tanzanian pipeline system, and will pass within 12 kilometres of the Ntorya-1 well, the news report said.

Ntorya-1 was drilled in 2012, and has at least 178 billion cubic feet of gas in place according to estimates.

The two companies are also negotiating for the sale of gas from the Kiliwani North well, which Aminex said was ready for production, and for any subsequent discoveries in the Ruvuma Basin.

"[Aminex] is confident that fair and economically viable terms, together with a reliable delivery mechanism to market, will be established in the near future," Interactive Investor quoted a spokesperson for the company as saying.