Gas production has begun at the Kiliwani North gas field in Tanzania, Aminex Plc said in a news release.
The Kiliwani North Development License is operated by a wholly-owned subsidiary of Aminex with a 55.575% working interest, which is expected to drop to 51.75% as a result of a partial disposal announced April 4. Aminex said the field will provide the company with its first significant African production.
The Kiliwani North-1 well (KN-1) is tied into the regional pipeline infrastructure and will deliver gas to the new adjacent Songo Songo processing plant, ultimately serving the local power market, according to the release. All gas produced during the build-up to full production rates will be paid for under the terms of a gas sales agreement with Tanzania Petroleum Development Corp. (TPDC).
Production is expected to increase to an anticipated production rate of 25-30 MMcf/d over the next 90-100 days. Initial production rates will be carefully managed to allow for testing and commissioning of the gas processing plant and pipeline, while recording pressure and flow rate measurements to determine the optimal flow rate to maximize the life of the reservoir, Aminex said. TPDC and Amimex plan to conduct a well test during the production buildup to determine the optimal flow rate. This optimal flow rate will become the commercial production rate, and Aminex intends to flow gas at this rate for as long as possible prior to a natural decline in production, according to the release.
KN-1 represents contingent resources (2C) of gross 28 billion cubic feet gross. With first production complete Aminex expects to book reserves for Kiliwani North later this year, the company said.