Artumas green light on CNG export talks

Norwegian-listed oil and gas explorer Artumas says Tanzania’s government has given the greenlight for it to finalise talks on a deal to export compressed natural gas (CNG) to off-take clients in Kenya.

The group said it can now move forward to conclude project agreements, including long-term gas sales agreements with the off-take customers and a transportation services agreement with the CNG shipper.

Conclusion of these commercial agreements will underpin current planning activity in support of commencement of the drilling programme in the fourth quarter of this year, Artumas said.

Artumas CEO Stephen Mason said his company had worked closely with the Tanzania Petroleum Development Corporation (TPDC) and the government to determine the best use of the large natural gas resource base located in the Tanzania part of the Rovuma Basin.

“These events set the stage for the company to reach substantial cash-flow before 2011,” he added