A major step in bringing the field into production, the Minister for Energy & Minerals of Tanzania, the Hon. William Ngeleja, has signed a Development License with Aminex's (LSX:AEX) Tanzanian subsidiary, Ndovu Resources Ltd., for the Kiliwani North Gas Field in Tanzania.
The Development License represents an area carved out of the Nyuni East Songo-Songo Production Sharing Agreement, which includes the mapped area of the Kiliwani North gas field.
The Kiliwani North-1 well flowed gas at a rate of 40 million cubic feet per day (equivalent to 6,700 barrels of oil per day) under full production test conditions. Ndovu manages the Nyuni PSA, and the Kiliwani North gas field as operating partner for a four-company consortium.
East Africa has become the subject of high industry interest recently, following successful drilling by large companies operating in deepwater, both in Tanzania and in neighboring northern Mozambique. The Kiliwani North Development License is the first new Development License granted in Tanzania as a consequence of exploration drilling carried out in recent times and is a significant milestone in the commercialization of Tanzanian gas.
Kiliwani North has been independently estimated to contain 45 billion cubic feet ('BCF') gas in place on a Pmean Contingent Resources basis, equivalent to 7.5 million barrels of oil. Gas from Kiliwani North will be available to assist in countering current energy shortages in Tanzania.
Another prospect which lies within the development area, known as Fanjove North, but which has yet to be drilled, has been independently estimated to contain in excess of 200 BCF gas in place, equivalent to approximately 30 million barrels of oil, on a Pmean Prospective Resources basis and, subject to the outcome of a planned transition zone seismic survey, may be drilled in due course.
The Kiliwani North wellhead is situated on the southern tip of Songo-Songo island off the coast of Tanzania and is less than 3 kilometers from the nearest access point to the process facilities (being upgraded) at the input end of the Songas common-user pipeline which delivers gas from the neighboring Songo-Songo field to the city of Dar es Salaam. Ndovu has already negotiated a memorandum of understanding for the future sale of gas to industrial users in the Dar es Salaam area and expects to be able to deliver first gas within 12 months.