Tanzania Major Gas Operator Solo Oil Plc says State Owned TPDC has agreed to extend Operation Licence for Mtwara

Solo Oil plc said has successfully completed discussions with the Tanzanian Petroleum Development Corporation (‘TPDC’) to extend operation licence for Mitwara licence of the Ruvuma Production Sharing Agreement (‘Ruvuma PSA’).

The licence was due to expire late December 2016.  A one-year extension has been approved by TPDC and is thus awaiting ministerial approval.

The UK based Solo also said its partner Aminex has also completed discussions with the TPDC with regards to transferring the outstanding drilling obligations in the northern Lindi Licence (“Lindi”). The Lindi License is also part of the Ruvuma PSA, into the southern Mtwara Licence (“Mtwara”).

Mtwara includes the approved appraisal area for the Ntorya gas condensate discovery.

TPDC is supporting the transfer of the Lindi drilling obligations to Mtwara and is seeking Ministerial consent. Once consent is received, Aminex and Solo intend to drill the Ntorya-2 appraisal well which will satisfy the appraisal drilling obligation and it is then expected that the Solo-Aminex partnership will apply for a 25-year development licence for the Ntorya discovery.

Solo oil executive director Neil Ritson said in statement that A year’s extension to Mtwara licence on the Ruvuma PSA shows how committed the Tanzanian government is to the project

“Solo is very pleased with progress in the Ruvuma PSA and that we will shortly be in a position to commence the appraisal of the Ntorya-1 gas condensate discovery which we remain convinced has substantially more potential than the gross 70 bcf of gas booked to contingent resources this far.  We look forward to an announcement from Aminex on the expected spud date for the Ntorya-2 well in due course.”

Watch Neil Ritson Interview with Proactive Investors

Elsewhere in Tanzania, and as recently announced, the power generation system and other auxiliary facilities at the Songo Songo Island gas processing plant have been commissioned and the commissioning of the remainder of the gas plant and sub-sea pipeline commenced on 4 April 2016.

The Kiliwani North-1 (“KN-1”) well continues to be the sole producer to the TPDC gas processing plant on Songo Songo Island during the commissioning and is expected to reach production levels of up to 30 mmscfd shortly.

 Gas from KN-1 will be processed at the new Songo Songo Island gas plant and will ultimately be transported by pipeline to Dar es Salaam, where it will be sold into the local Tanzanian market.

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