Aminex said that it has arrived at an agreement with the Tanzania Petroleum Development Corporation (TPDC) to settle the payment of outstanding amounts owed in connection with past gas sales to the latter pertaining to the Kiliwani North joint venture in Tanzania.

The agreement will result in a payment of around $1.85 million to the Africa-focused oil and gas company based in the UK.

Aminex said that it had been engaged in discussions with Tanzania Petroleum Development Corporation during the last few months before reaching a settlement.

Kiliwani North, which is operated by Aminex, has been producing since 2016.

Charlie Santos — Executive Chairman of Aminex said: “We are delighted with the settlement reached with the TPDC, which brings some much-needed funds into the Company.  This settlement reflects the commitment of the TPDC to work constructively with its partners and the determination of the Tanzanian authorities to establish conditions that will spur further investment into the Tanzanian energy sector.

“We would like to thank the TPDC and the Tanzanian authorities for their efforts to bring this matter to a satisfactory close.”

The agreement between the parties entails netting off previous gas purchases of $6.77 million that were due to the Kiliwani North Joint Venture (KNJV) against the amounts owed to the Tanzanian corporation. These include training and licence fees as well as the profit gas share of Tanzania Petroleum Development Corporation on unpaid gas sales.

As of 30 June 2021, the Kiliwani North joint venture was owed an amount of $8.34 million by the Tanzanian firm, of this $3.50 million is owed to Aminex.

The joint venture has consented to waive its interest claim in the amount of $1.57 million under the Kiliwani North Gas Sales Agreement (GSA) on gas sales not paid for the purpose of settling the issue and ensure payment from the Tanzania Petroleum Development Corporation.

The Tanzanian corporation has to pay $4.37 million to Aminex within 30 days of the signing of the settlement agreement.

Following the distribution of the joint venture partner shares of the gas sales and the transfer of indirect tax and export duty, the UK-based firm will be left with around $1.85 million.

Under the terms of the settlement agreement, Tanzania Petroleum Development Corporation reserves its rights in relation to Nyuni East Songo Songo PSA as well as some rights under the GSA.

  Aminex, Charlie Santos, Kiliwani North, Nyuni East Songo Songo, Oil and gas industry news, Oil and gas news, Tanzania, Tanzania Petroleum Development Corporation, TPDC