Tanzania's Kiliwani North Produces First Gas

First gas production from the Kiliwani North gas field in Tanzania was announced on April 6 by its UK operator Aminex.

Licensees will be paid US$3 per mn Btu for gas produced, and Aminex itself expects net cash revenues of $10-15mn/y from the field.

"This is a significant moment for Aminex, its shareholders and Tanzania, and is the culmination of a tremendous amount of hard work by all involved,” said Aminex CEO Jay Bhattacherjee: “First gas at Kiliwani North marks the transition of the company from developer to producer in Africa.”

It puts contingent resources (2C) at the field (KN1) at 28bn ft3 gross. With first production complete Aminex expects to book reserves for Kiliwani North later this year. Three weeks ago it anticipated the field’s start-up in early April.

Current licensees are Aminex 55.575%, Abu Dhabi-based RAK Gas 23.75%, UK-based Solo Oil 6.175%, Australia-based Bounty Oil & Gas 9.5% and state Tanzania Petroleum Development Corporation (TPDC) 5%. On completion of a deal announced on April 4, Aminex’s share will fall to 51.75% while Solo’s will increase to 10%.

Solo also said the start-up was “transformational” for the company. CEO Neil Ritson said that Solo also looks forward to progress on the Ntorya appraisal in the Ruvuma production sharing contract (PSC), also in Tanzania where a larger gas discovery has been made in which Solo’s interest is 25%. The Solo-Aminex joint venture in the Ruvuma PSC has until late 2016 to drill two further wells in the Lindi and Mtwara licence areas.

Solo also has a 20% interest in Burj Africa, a private UK-registered company that aims to participate in the current Nigerian marginal field licensing round. 

Mark Smedley