Following the first gas produced from Aminex-operated Kiliwani North field off Tanzania in April, commissioning of the power generation system and other auxiliary facilities has now been completed.
Aminex said on Monday that commissioning of the gas plant and subsea pipeline started on June 1, 2016.
On June 2, the first Kiliwani North-1 (KN-1) gas was processed and entered the pipeline system connecting the Songo Songo plant with the national pipeline.
The company said that, during the commissioning, gas rates are planned to increase to 30 mmscfd while pressuring up the plant and pipeline.
Aminex and its partners have invoiced Tanzania Petroleum Development Corporation (TPDC) for both April and May gas production in accordance with the terms of the signed Gas Sales Agreement.
All gas produced during the build-up to full production rates will be paid for under the terms of the agreed Gas Sales Agreement signed with the sole buyer, TPDC.
Aminex will receive $3.00 per mmbtu (approximately $3.07 per mcf). The gas delivery point is at the outlet flange of the Kiliwani North wellhead and, by selling the gas at the wellhead, the joint venture partners will not be liable for pipeline transportation and processing fees, Aminex noted.
Initial production rates remain carefully managed to allow for testing and commissioning of the gas processing plant and pipeline, while recording critical pressure and flow rate measurements to determine the optimal flow rate to maximize the life of the reservoir.
Together with TPDC, Aminex stated, the company plans to conduct a well test during the production build up to determine the optimal flow rate. It is this optimal flow rate that will become the Commercial Production Rate and the company said it intends to flow gas at this rate for as long as possible prior to a natural decline in production. Based off initial pressure response from the Kiliwani North 1 well it is expected that the well will be tested closer 30mmcfd (approximately 4-5,000 barrels of oil equivalent per day gross).
KN-1 has booked contingent resources (2C) of 28 billion cubic feet gross. Aminex expects to book reserves for Kiliwani North later this year.
Jay Bhattacherjee, CEO commented: “We are pleased with the progress made so far at Kiliwani. The well has been performing very well and commissioning is so far on schedule. The Company continues to focus on delivering production growth through Kiliwani and driving its appraisal and eventual development programme at Ruvuma.”