Aminex announces significant progress on Tanzania’s Ntorya gas development

Aminex, the oil and gas exploration and development company focused on Tanzania, announced several key operations updates on its Ntorya gas development, including a successful seismic program, and plans for field and pipeline development.

Updated field development plan

The operator has updated its field development plan (FDP) for the Ntorya project to reflect the results of the 3D seismic program. The updated FDP has been presented to the TPDC for approval.

Following production from the Ntorya-1 well (NT-1), Ntorya-2 well (NT-2) and the planned Chikumbi- 1 well (CH-1), the FDP anticipates a phased development increasing the field production rate within around a five-year period from 60 mmscf/d to 140 mmscf/d to 280 mmscf/d, subject to the necessary export routes and offtake markets being built and sourced for the additional production. This will be achieved through a drilling program of an additional 13 wells in the coming decade.

Aminex forecasts that all of its capital expenditure requirements will be met through its Carry and future Ntorya revenues.

Ntorya to Madimba Pipeline

The Tanzania Petroleum Development Corporation (TPDC) launched a restrictive tender for the procurement of an engineering, procurement and construction (EPC) contractor for the construction of the gas pipeline from the Ntorya gas field to the Madimba gas processing plant (the Pipeline) in October 2024.

Following the signing of a Gas Sales Agreement and the award of the Development License in 2024, and with the anticipated award of the EPC contract for the Pipeline, there is now a clear path to monetization of the Ntorya gas field.

Operational activities

The operator (ARA Petroleum Tanzania (APT)), continues with the procurement and installation of processing facilities, flow lines, hook-up systems, manifolds and fiscal meters, to ensure the integrated development of the project and enable production from NT-2 into the Pipeline. The NT-2 well is scheduled to be ready to produce gas in time for the completion of the Pipeline.

As previously announced, the drilling of CH-1 and workover of NT-1 are planned to occur after the commencement of production from NT-2 and we await a further update from APT on the proposed drilling schedule once the EPC contract for the Pipeline is awarded.

“I am pleased to say significant progress has been made on all fronts of the Ntorya gas development in recent months, following the award of the 25-year Development License last year,” commented Charles Santos, Executive Chairman of Aminex. “The Tanzanian government continues to express its full commitment to the project and we hope to receive confirmation of the award of the pipeline contract shortly. APT, meanwhile, is preparing the ground for first gas.

The important seismic results have allowed APT and Aminex to propose a more extensive and longer-term plan for Ntorya, including the additional drilling program and consequent increased gas production, substantially increasing the potential value for Aminex shareholders. This Ntorya gas will also benefit the Tanzanian people considerably, increasing the reach and reliability of electricity supplies, supplanting dirtier fuels such as coal and wood, and helping boost the country’s industrialization.”