Aminex through its subsidiary, Ndovu Resources has sealed a Gas Sales Agreement (GSA) with ARA Petroleum Tanzania (APT), the operator, and the Tanzania Petroleum Development Corporation (TPDC) for the sale of gas from the Ntorya location.
Ntorya gas condensate field is located in south-east Tanzania and forms part of the Ruvuma Petroleum Sharing Agreement (PSA), which is jointly owned by its operator Aminex (75%) and UK-based Solo Oil (25%). Ntorya’s commercialisation has been movitated by Tanzania’s increasing demand for gas, which is to exceed supply over the years.
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Gas Sales Agreement
Payments under the GSA may be made in either US Dollars or Tanzanian Shillings and it will be in effect until the expiration or termination of the Ruvuma Production Sharing Agreement (PSA) or Development License, or the cessation of economic production from the Ntorya Gas Field.
The Daily Contract Quantity (DCQ) for the first year is 40 million standard cubic feet per day (MMscfd). Subsequent years may see an increase upon agreement. The Maximum Daily Quantity (MDQ) is set at 120% of the DCQ, reaching 48 MMscfd for the first year. There is potential for increased production, with Tanzanian authorities expressing willingness to take more gas as field production and their capacity to receive it increase.
Charles Santos, Executive Chairman of Aminex, expressed gratitude for the efforts of APT, the Tanzanian authorities, and highlighted the importance of the Ntorya field’s development for Tanzania’s energy security.