Omani junior Ara Petroleum, the new operator of the Ntorya gas discovery in southern Tanzania, has pulled together a long-awaited roadmap that aims to finally bring the field on stream.

Discovered in 2012 in the Mtwara block in the south of Ruvuma production sharing agreement (PSA), Ntorya holds about 763 billion cubic feet of contingent gas resources.

Field partner Aminex said on Monday that Ara has presented the Ruvuma joint venture partners with an updated work programme and budget for the remainder of 2020 and for 2021 and “importantly, has proposed a planned roadmap towards first gas from the Ntorya discovery".

The joint venture has identified completion of the full-field development plan (FFD) in 2022 as a primary and critical element required to progress the Ntorya project towards submission of an application for a 25-year development licence.

A critical path in the project to develop the FFD and make further investment decisions is to progress sub-surface imaging of the reservoir architecture at Ntorya and map remaining upside potential across the licence, if any.

Seismic campaign

Sub-surface imaging is a priority, so Ara aims to acquire 454 square kilometres of 3D seismic in the second and third quarters of 2021, significantly in excess of the minimum licence commitments, which will be used to place development wells and help determine infrastructure requirements.

The total cost of the work programme and budget for 2020-2021 is expected to be about $23 million, with Aminex saying it is fully carried for its 25% interest.

The work programme is also expected to cover pre-drilling activities for the long-touted Chikumbi-1 exploration well, negotiations of the commercial terms for the development licence and an application for a further one-year licence extension.

Ara aims to spud the Chikumbi-1 well in January 2022 and to submit the development plan by the end of 2022.

Aminex chief executive Robert Ambrose said: “Following the completion of the farm-out and with Ara moving the development forward, (we) can now concentrate on progressing initiatives that offer value creation for the company.

“Furthermore, this in-depth, high-value work programme will eventually see Tanzania benefit from the supply of affordable and much needed lower-carbon energy and provide significant revenues for the company.”

Muscat-based Ara — part of the Zubair — holds a 50% stake in the Ruvuma PSA, with London-listed duo Aminex and Scirocco Energy (formerly Solo Oil) each holding 25% stakes.

Scirocco states that Ntorya could produce 140 million cubic feet per day of gas at plateau.

Meanwhile, shares in Helium One, a company with a helium asset onshore Tanzania, are set to start trading on the London Stock Exchange on 4 December.

The company’s key asset is a 100% stake in a potential 138 billion cubic foot helium field in the Rukwa basin which it plans to appraise.

Field Development

Plans afoot by Omani operator for new Tanzania gas project