Bounty Oil and Gas (ASX:BUY) expects commercial gas production from the Kiliwani North Gas Project in Tanzania to begin in early 2015 at an initial rate of 20 million cubic feet per day.
The company has a 10% stake in the project, which is operated by Aminex plc (LON:AEX).
The Tanzanian Petroleum Development Corporation has financed and is constructing the main 36 inch south-north pipeline system, the Songo-Songo 24 inch lateral and the Songo-Songo Gas Processing Plant.
It will also construct the tie-in line from the Plant to Kiliwani North at it cost.
This will allow the joint venture to sell its production at the wellhead, eliminating all capital expenditure exposure to infrastructure and greatly simplifying the process of selling sales gas.
Kiliwani North
Kiliwani North is located within the Nyuni Block that is located 30 kilometres offshore from Rufiji Delta Tanzania.
The Kiliwani North-1 had flowed 40MMcf of gas during testing.
The Nyuni joint venture is currently negotiating with contractors to acquire 700 square kilometres of new 3D seismic over the deep water in the eastern part of the production sharing agreement.
This will detail the up dip extension of Lead 3 in the adjacent Ophir/RakGas East Pande permit which independent consultants recently suggested could contain 1.3 trillion cubic feet of gas within the Nyuni PSA area.
There are numerous other deep water channel/fan features apparent from the limited seismic coverage available with associated seismic anomalies.
The 3D seismic will seek to firm up these targets into drillable prospects and is planned for Q4 2014/Q1 2015.
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