Aminex’s (LON:AEX) plans to sell a chunk of its interests in Tanzania to UK-listed peer Bowleven (LON:BLVN) have been abandoned.
In November, the UK junior agreed the sale to Bowleven a 25% stake in the Kiliwani North development and 50% of the Ruvuma Basin PSA.
Today’s statement said that during the due diligence process with Bowleven, a forward work programme could not be agreed which would be acceptable to Aminex, its lender, the Tanzanian authorities and Solo Oil, which had also agreed to farm-out a 12.5% stake in Ruvuma to Aminex.
Holdings in Kiliwani and Ruvuma will now revert back to how they were prior to the Bowleven deal.
That sees Aminex holding 55.76% and staying the operator at Kiliwani. Solo Oil has a 6.175% interest and an option to acquire a further 6.175%.
Aminex also owns 75% of Ruvuma, with Solo having the remaining 25%.
A gas sales agreement was agreed at Kiliwani last month and Aminex said it has been advised by the Tanzanian Petroleum Development Corporation to prepare the Kiliwani North 1 well for production from mid-February.
Jay Bhattacherjee, Aminex’s chief executive, said: "The recent completion of the gas sales arrangements for the Kiliwani North field opens a new chapter for Aminex in Tanzania.
“With the commencement of first production from the Kiliwani North 1 well, we expect to book our first reserves in-country.
“Aminex is currently assessing alternative ways to monetise its gas in the Ruvuma PSA acreage, where we already have a commercial gas discovery at Ntorya-1, through an early production system."