LONDON (Thomson Financial) - Oil and gas group Aminex Plc said it will be
developing the Kiliwani North discovery in Tanzania as a commercially viable gas
field.
One of the two wells at the site, known as Kiliwani North-1, encountered a
60-metre gross gas column in the Lower Cretaceous sands. It produced 40 million
cubic feet of gas a day during testing operations last month.
Aminex, which is leading the consortium that is exploring the field under
the Nyuni/East Songo-Songo production sharing agreement (PSA), has now applied
to the Tanzanian government to carve out a separate appraisal area for Kiliwani
North comprising the discovery block and the adjoining areas.
"Commercialisation of Kiliwani North through the KN-1 well will be
fast-tracked as a separate project with the aim of achieving early production.
This will be done in parallel with further seismic and exploration drilling over
the remaining exploration blocks," said Aminex, the operator and 40 percent
shareholder.
Aminex said KN-1 has proved the neighbouring Songo-Songo producing gas field
is not a "stand-alone" site. However, it will be tough to estimate the reserves
for Kiliwani North because the structure extends to the north, beyond the range
of existing seismic coverage, it added.
Apart from Kiliwani North, the consortium will also explore other prospects
in the region which could potentially be holding over 1 trillion feet of gas. An
independent review of these prospects will be carried out over the next two
months, the company said.
Rak Gas Commission owns a 25 percent stake in the Nyuni PSA, while Key
Petroleum owns 20 percent, East African Exploration 10 percent and Bounty Oil 10
percent.
Elsewhere in Tanzania, Aminex said preparations for the first drilling of
the 12,000-square kilometre Ruvuma Basin are progressing as planned.
The first of the two wells is expected to be spudded early next year, said
Aminex, which is pursuing the project through a 50-50 partnership with Tullow
Oil Plc.
monicca.egoy@thomsonreuters.com
mbe
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