Mnazi Bay production will increase for the rest of the year, following the end of the rainy season.
Wentworth Resources, a partner in the Tanzanian gas development, expects production to be 65-75 million cubic feet (1.84-2.12 million cubic metres) per day in 2020. Output over the first five months was 58.2 mmcf (1.65 mcm) per day.
COVID-19 restrictions have been lifted, which is also expected to tie in to higher demand for gas. No cases of the virus were reported at Mnazi Bay.
There has been “no impact on operational performance during the COVID-19 pandemic”, Wentworth’s CEO Katherine Roe said.
The partners at the field have agreed a limited work programme, which will cost Wentworth $4.6mn. The company said this would ensure well integrity and support demand.
Wentworth had $15.7mn of cash on hand at the end of May and has no debt. The company will pay a $2 million dividend, announced in April, by the end of June.
Tanzania Petroleum Development Corp. (TPDC) has settled its payments to Wentworth to the end of May. Talks are under way with Tanesco, the power company.
Best practice
“Emerging from this pandemic, it will be critical for businesses to be able to transparently demonstrate their impact on society as well as their resilience to these types of economic shocks in the future,” said Roe.
“We know that our business has a real opportunity to deliver significant, positive change for the people of Tanzania through gas to power and we are committed to increasing our disclosure on our business risks and impacts to align Wentworth with international best practice.
“The sustainability and ESG landscape is constantly evolving, meaning that this will be an ongoing journey for Wentworth and we look forward to updating you further on our progress later in the year.”
Power is only available to 32.7% of Tanzanians. The share of people lacking power is growing but the country is aiming for universal access by 2030.
Gas can provide “cheaper and more reliable” electricity for the country, Wentworth said, and help develop renewable systems.