Solo buys share in Kiliwani North (Tanzania)
- Business & Finance
Aminex in October 2014 announced a binding agreement to sell up to 13% of Kiliwani North Development Licence, offshore Tanzania, to Solo Oil plc for a total consideration of $7 million.
The company has today said that the two oil and gas companies have now signed the Asset Sale Agreement for the first 6.5% interest and the only conditions precedent remaining are the formal approval by the Tanzanian Authorities, which both Companies expect to receive shortly, and the formal signing of the Asset Assignment Agreement by all partners.
Further, both Companies have agreed to amend the original terms of the agreement to allow Solo the option to purchase the additional 6.5% interest in the licence to a period of 30 days after the Gas Sales Agreement (“GSA”) has been agreed on the same terms as the first 6.5% interest.
The licence contains the Kiliwani North 1 (“KN1”) well, which Aminex and Solo expect to produce at approximately 20 mmcfd when onstream.
Aminex has said that the production start up and subsequent revenues will represent a major milestone for from the Company in Tanzania. Independently verified resources at Kiliwani North are estimated to be 45 billion cubic feet of gas in place. Construction of the 2km pipeline from the KN1 wellhead to the new Songo Songo processing plant, at zero cost to Aminex, is underway and expected to be completed shortly.
The partnership has been notified by the Tanzanian Petroleum Development Corporation (“TPDC”) that pressure testing of the pipeline is expected to start during Q1 2015.
“The Board continues to look forward to signing of the GSA, which is largely complete but is experiencing delays in closing due to the Tanzanian authorities’ approval process. The Board
expects the GSA to be signed prior to any gas being delivered for pressure testing or commissioning and the Company will continue to keep the market informed on developments
accordingly,” Aminex has said.