Aminex today confirmed it had struck a deal with the Tanzanian government ahead first production form its Kiliwani North gas field.
The Gas Sales Agreement (GSA) with the Tanzania Petroleum Development Corporation (TPDC) will see gas sold at $3 per mmbtu.
The agreement also stipulates the TPDC purchase, take delivery of or pay for a pre-determined volume of gas each month. In the event that TPDC elects not to take delivery of the pre-determined volume, it will pay for the equivalent of 85% of the agreed commercial rate of gas to be supplied
The exploration firm hailed a deal a major “milestone”.
Aminex chief executive, Jay Bhattacherjee, said: “Aminex has operated in Tanzania for over 13 years, always working closely with the Tanzanian authorities, and the Kiliwani North Gas Sales Agreement represents a major milestone as the Company’s first commercial production in Tanzania.
“Achieving this agreement has been a long time coming but the final version is comprehensive and will allow production to commence with clarity and security. We are grateful to shareholders for their support and patience. With a mix of production from Kiliwani North and upcoming appraisal and development drilling in the highly prospective Ruvuma basin, we consider Aminex to be well placed for further growth.”
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