Scirocco Energy PLC (AIM:SCIR) noted on Friday that an agreement has been reached between the Kiliwani North joint venture and the Tanzania Petroleum Development Corporation for the payment of outstanding monies owed for past gas sales.
Aminex, on behalf of the joint venture, reached an agreement that involves netting off past gas sales of US$6.77mln due to the Kiliwani North JV, of which Scirocco Energy holds an 8.39% working interest, against licence and training fees and the profit share on the unpaid gas sales owed to TPDC.
As previously reported, as at 30 June 2021, the JV was owed US$8.34mln by the TPDC.
Of this amount, the KNJV has agreed to waive its claim for interest of US$1.57mln under the Kiliwani North gas sales agreement (GSA) on the unpaid gas sales to settle the matter and secure payment by the TPDC.
The TPDC is required to make a payment of US$4.37mln to Aminex within 30 days of execution of the settlement agreement, of which Scirocco Energy shall receive US$0.15mln its share of the gas sales net of remittance of indirect taxes and export duties.
Tom Reynolds, chief executive officer of Scirocco, said: "I am pleased that the parties and TPDC have reached a conclusion on this longstanding issue of the receivables associated with the Kiliwani North project. Through our engagement with the Joint Venture we are aware of the hard work on both sides to get this agreement in place and the board of Scirocco thanks both Aminex and TPDC for their work in concluding this agreement which is beneficial to all parties and the project as a whole."