Kiliwani partners assess gas export routes

Offshore staff

PERTH, Australia -- The joint venture for the Nyuni block off Tanzania is progressing plans to develop the Kiliwani North 1 gas discovery.

According to partner Key Petroleum, a specialist negotiator has been contracted to help draw up terms and conditions with Tanzanian government departments and potential clients.

A newly completed market review provides a clear picture of markets for the gas, both in the capital Dar es Salaam and in rural areas, where energy demand is growing. Funding also has been approved for a study into whether the country’s existing gas trunkline, which terminates in the capital, could be extended commercially to Mombasa, Kenya.

The partners approved a new 2D appraisal seismic program over part of Songo Songo Island and adjoining areas to assist definition of potential sales gas volumes. This was conducted during June-July, and the results will now be interpreted.

In the West Songo Songo block, Key is a 50% participant via its subsidiary Funguo Petroleum. Here a prospectivity assessment exercise has been completed.

Key believes this license provides a strategic advantage over areas further east in the Songo Songo area, due its proximity to the onshore trunkline.

07/28/2009