Upstream oil and gas company Aminex and ARA Petroleum LLC (ARA) have seen positive movements in Tanzania with the government actively resolving several longstanding issues with other operators in-country
These positive movements are a good sign for Aminex’s Ruvuma project and provide confidence to the company and ARA who are now prepared to further advance certain predrilling operations for the Chikumbi-1 well.
The company and ARA will advance works so that drilling of the well can commence as soon as practicable following the satisfaction of the remaining conditions precedent, namely granting of the Mtwara licence extension and government approval for the transfer of interest and operatorship.
Furthermore, ARA has agreed to provide the company with an advance of US$3 million in instalments before the completion of the farm-out. The advance will be offset against the first tranche of the cash consideration payable to Aminex on completion of the farm-out.
The second tranche of the cash consideration of US$2mn, which was initially due to the company 180 days after completion, will now be payable to the company upon completion.
The long stop date for completion of the farm-out has been extended to 30 June 2020.
Aminex Chairman John Bell said, “ARA is suitably encouraged by the ongoing discussions with the Tanzanian authorities to accelerate the planning and preparation for the spud of Chikumbi-1.”
“Furthermore, these advanced payments demonstrate a commitment to this excellent asset, which when on production will play an important role in meeting domestic demand for gas from the people and businesses of Tanzania and a possible international market through export arrangements with neighbouring countries. Alongside our partner ARA, we continue to work towards completion of the Ruvuma Farm-Out, and are proactively engaged with the Tanzanian authorities to obtain the outstanding approvals and licence extension,” he added.
