Aminex PLC, Africa-focused oil and gas production and development company, has announced the first gas production from its offshore Kiliwani North gas field in Tanzania
The Kiliwani North Development Licence is operated by a wholly-owned subsidiary of the company with a 55.57 per cent working interest.
Initial production commenced from the Kiliwani North-1 well (KN-1) on 4 April. KN-1 is tied into the regional pipeline infrastructure and will deliver gas to the new adjacent Songo Songo processing plant, ultimately serving the local power market, the company sources said.
Initial production rates will be carefully managed to allow for testing and commissioning of the gas processing plant and pipeline, while recording critical pressure and flow rate measurements to determine the optimal flow rate to maximise the life of the reservoir.
All gas produced during the build-up to full production rates will be paid for under the terms of a recently signed gas sales agreement signed with the sole buyer, Tanzania Petroleum Development Corporation (TPDC). Together with TPDC, Animex PLC plans to conduct a well test during the production build up to determine the optimal flow rate.
It is this optimal flow rate that will become the commercial production rate and the company intends to flow gas at this rate for as long as possible prior to a natural decline in production.
KN-1 represents contingent resources (2C) of gross 28bn cubic feet gross. With first production complete Aminex PLC expects to book reserves for Kiliwani North later this year.
Production is expected to build up to an anticipated production rate of 25-30 mn cubic feet per day or approximately 4,000-5,000 boepd gross over the next 90-100 days.
Aminex PLC CEO Jay Bhattacherjee said, “This is a significant moment for Aminex PLC, its shareholders and Tanzania, and is the culmination of a tremendous amount of hard work by all involved.
“First gas at Kiliwani North marks the transition of the Company from developer to producer in Africa and sets us on the path for growth as we begin to generate cash. The company looks forward to its exciting appraisal and development programme in the Ruvuma Basin which will potentially add further revenues in due course.”