Solo Oil PLC (LON:SOLO) chief executive Tom Reynolds has declared the company delighted with the news that partner Aminex PLC (LON:AEX) has received approval from the Tanzanian government for its farm-out transaction for the Ruvuma project.
It allows ARA Petroleum to take a 50% interest in the project and become operator of the project.
Solo, which retains 25% of Ruvuma, said the transaction’s approval marks a key development in the company’s ongoing sales process for its assets in Tanzania.
"We are delighted Aminex and ARA Petroleum have succeeded in obtaining the final government approvals for the completion of their transaction,” Reynolds said in a statement on Monday afternoon.
“This milestone indicates an improving operating environment in Tanzania and emphasises the commitment of the incoming operator to move forward with the development and unlock the value from this high-quality onshore gas asset ideally situated to provide domestic gas into existing infrastructure and with a ready market for commercialisation.”
He added: “From our perspective, this is a key milestone for our sales process as it provides clarity and certainty on the development of the project.
“We continue to have strong engagement for our sales process, and with this news today, we hope to move those discussions forward with a view to realising value for our shareholders and setting us on our stated growth path."