(MENAFN- ProactiveInvestors)
Bounty Oil and Gas () is a step closer towards receiving gas revenue from the Kiliwani North Development Licence in Tanzania.
The Tanzanian Petroleum Development Corporation has now begun constructing the Skid Metering Unit within the boundaries of the licence and have completed laying pipe to its boundary.
Once construction is complete the Kiliwani North 1 well will be connected to the new Songo Songo processing plant where the gas once produced will be processed prior to being transported and sold through the new Dar es Salaam to Mnazi Bay pipeline.
Pressure testing of the pipeline is expected to commence during the first half of 2015 and the final construction of equipment to connect is expected within this timeframe in order for commissioning to occur.
The joint venture is working to sign the Gas Sales Agreement which is largely complete but is experiencing delays in closing due to government authorities’ approval processes.
The joint venture expects the GSA to be signed prior to any gas being delivered for pressure testing or commissioning and Bounty will continue to keep the market informed on developments accordingly.
Bounty has a 10% interest in the licence which holds 45 billion cubic feet of gas. The Kiliwani North-1 well is expected to produce 20 million cubic feet of gas per day.
Proactive Investors Australia is the market leader in producing news articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia UK North America and Hong Kong / China.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.