TANZANIA – Africa-focused oil and gas company Aminex has completed the farm-out agreement with ARA Petroleum Tanzania Limited (APT) which has assumed operatorship of the Ruvuma PSA.
Under the farm-out agreement, Aminex is carried for its share of the associated field development costs up to US$35million, equivalent to gross development expenditure of US$140 million.
The joint venture partners agree that the acquisition of a high-resolution 3D seismic survey is of primary importance for the preparation of the field development plan.
The new seismic will also deliver information that will be helpful in the final planning of the Chikumbi-1 well and the location of any subsequent development wells.
APT has presented both the joint venture partners and the Tanzania Petroleum DevelopmentCorporation with a revised schedule showingseismic acquisition taking place over 480 sq. km during the second and third quarter of 2021 with processing being completed thereafter.
The Chikumbi-1 well has been designed to reach a total depth of 3,485 metres targeting both the proven Cretaceous gas reservoir and a deeper Jurassic exploration prospect.
Assuming a successful outcome with the forthcoming Chikumbi-1 well, first gas from the project is anticipated to occur in September 2024.
Charles Santos, executive chairman of Aminex, commented, “The Aminex Board is delighted that activity on the ground in Tanzania is finally taking concrete form and moving us closer to establishing the Field Development Plan whilst enabling the final planning of the Chikumbi-1 well and assist with the location of subsequent wells.”
Aminex is an Africa-focused oil and gas company with near term production, development, and high impact exploration.
The company is listed on the London Stock Exchange and primary-listed on the Irish Stock Exchange.
In January this year, Aminex restructured its board and further cut it costs, as it seeks to take advantage of opportunities provided by the recently sealed farm-out deal for the Ruvuma project.
The company said it plans to reduce gross general and administrative costs by 30% this year plus by a further 25%-30% next year.
It also aims to lower these costs to below US$1.4 million per year, which would equate to a 75% reduction since 2018.
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