Aminex, the oil and gas exploration and development company focused on Tanzania, is pleased to announce that following the grant of the Development Licence over the Ntorya gas discovery area by the Ministry of Energy in Tanzania in May 2024, the Company and the operator of the development, ARA Petroleum Tanzania Limited (APT), were presented with the Development Licence at a formal handover ceremony in Mtwara yesterday.
The Licence is for a period of 25 years and was presented to the joint venture by the Deputy Prime Minister and Minister for Energy of Tanzania Dr. Doto Mashaka Biteko. Along with representatives of the Company and the operator, Lindi Regional Commissioner Ms. Zainab Rajabu Taleck and District Commissioner Mr. Abdallah Mwaipaya were also in attendance at the ceremony, as well as the Permanent Secretary of the Ministry for Energy, Mr. Felchemsi Mramba, Member of the Board and Managing Director of the Tanzania Petroleum Development Corporation, Mr. Dismas Fuko and Mr. Mussa Makame, and the Managing Director of the Petroleum Upstream Regulatory Authority, Mr. Charles Sangweni.
The ceremony was attended by over 1,000 people, including local and regional dignitaries, Members of Parliament as well as members of the public. The Deputy Prime Minister outlined the government's vision for the future. Aminex was encouraged to hear that the Deputy Prime Minister anticipates the completion of the pipeline from Ntorya to Madimba within the next six months, enabling the delivery of gas for the production of electricity. The Deputy Prime Minister noted that:
· President Dr. Samia Suluhu Hassan has been a driving force behind this gas exploitation initiative.
· For the first time under the current government, substantial quantities of gas will be extracted as a consequence of this project.
· The licence handover represents the government's dedication to ensuring that the country's resources including natural gas, benefits its citizens.
· The licence marks the beginning of gas exploitation to further strengthen electricity availability in the Mtwara region.
As well as endorsing the efforts of the joint venture to date, the ceremony marked a milestone in the government's commitment to bring energy and economic benefit to the region and the country.
Work on the Ntorya site has been progressing over the last few months, with APT acquiring land for the upstream processing facilities and the Chikumbi-1 appraisal well location, while expanding another nearby site to accommodate the construction of a camp and storage yard. APT is also putting into place the logistics necessary to conduct the subsurface work that will lead to first gas production.
This includes conducting a well-test on Ntorya-2 and converting it to a producing well, drilling the Chikumbi-1 appraisal well with a view to converting it to a producing well and carrying out a well workover at Ntorya-1, before turning it into a producing well. First gas is anticipated as soon as the pipeline carrying the gas away from the field is completed, which is expected next year.
According to a Gas Sales Agreement signed with the Tanzania Petroleum Development Corporation in January 2024, APT expects to produce 40 to 60 million standard cubic feet a day (mmscf/d) in the first year of production, with an increase to 140 mmscf/d within a few years. Such volumes will increase Tanzanian gas production by between 20-80 percent.
As a founding partner of the Ntorya gas discovery, with over 20 years' presence in Tanzania, Aminex looks forward to realising the enormous potential of the discovery beyond initial production as APT's joint venture partner, and help it boost Tanzanian, and in particular, the Mtwara region's industrial development and prosperity.
The joint venture partners believe there is potential to produce far greater volumes of gas from Ntorya, having conducted an extensive 3D seismic survey over the wider licence area. This potential will require investment in a phased development of the Ntorya gas field and the maturing of domestic industries as gas offtakers, such as fertiliser, cement and plastics production plants, vehicle CNG stations, domestic LPG suppliers and additional gas-fired power stations for industrial and residential use.
Aminex, with a 25% non-operated interest, is carried throughout the ongoing work programme to a maximum gross capital expenditure of $140 million ($35 million net to Aminex). The carry is expected to see the Company through to the commencement of commercial gas production from the Ntorya field at zero cost to the Company.
Charles Santos, Executive Chairman of Aminex commented:
"We were honoured to be invited to this ceremony celebrating the handover of the Ntorya Development Licence from the Ministry of Energy. This ceremony demonstrates the firm commitment of the Government of Tanzania to utilise Ntorya's resources to help eliminate energy poverty, spur growth and improve living standards in the country. We are proud as a founding partner in Ntorya to support ARA Petroleum and the Tanzanian authorities in this crucial effort. Although this development licence is the beginning of our efforts, we are very excited about the further potential of Ntorya to bring significant economic benefits to Tanzania and the region."