Kiliwani North #1

Kiliwani North # 1 was drilled on the main Songo Songo Island to test dual plays, namely Tertiary and Neocomian structural targets.  The Tertiary was regarded as being more oil prone than the proven Neocomian play, even though oil flows have not yet been recorded in Tanzania.  The well was spudded on 23 February 2008 and was suspended as a Neocomian gas discovery on 29 March 2008 after reaching a depth of 2030m. 

Multi-rate production testing of Kiliwani North # 1 was conducted in early June 2008, resulting in a maximum stabilised gas flow rate of 40 MMscfd with strong flowing well head pressures through a 72/64" fixed choke.  The gas is classed as "sweet" with no impurities such as H₂S or CO₂ and has a condensate: gas ratio of 1 barrel / MMscfd of gas.  Standard gas processing techniques will be required for gas of this composition which appears to be compatible with the gas stream from the Songo Songo field.

Kiliwani North # 1 discovered a gross 60m gas column in the same reservoir as the Songo Songo Gas Field but was unsuccessful at this location in encountering hydrocarbons in the Tertiary.  The Kiliwani North gas water contact has been interpreted from pressure data and is deeper than the Songo Songo Gas Field, indicating the discovery of a separate field.  The northern limit of the field is uncertain as it is poorly constrained by seismic data.  Part of the agreed forward field appraisal program incorporates the recording of transition zone seismic over the northern field extension.  This field work is scheduled for late 2008-2009.

The Nyuni Joint Venture is operated by Ndovu Resources, a subsidiary of Aminex plc which has initiated the commercialisation process for gas from Kiliwani North # 1. The Songo Songo Gas Field is wholly owned by the state-owned Tanzanian Petroleum Development Corporation (TPDC) who are also a party to the Nyuni Product Sharing Agreement (PSA). A number of options for commercialisation of the Kiliwani North gas are being investigated, one is the delivery of gas to Songo Songo gas processing facilities. 

Gas market studies have commenced and have identified the main gas customers and future demand and supply requirements for the domestic market.  The Songo Songo Gas Field is the only producing gas field in East Africa with most of the production being used for electricity generation in the Dar es Salaam region.  Key believes the Songo Songo Gas Field has the capacity to meet the energy needs for around half of the local power generating capacity.  In recent years, power generation has often been constrained by the water resources available for the existing Tanzanian hydro-electric generating facilities.  Expansion of the gas domestic pipeline network may serve additional customers in due course.

Insights from the Kiliwani North discovery have upgraded the petroleum potential of the Production Sharing Area and indicate that more discoveries are likely to be made in this part of the Tanzania continental shelf.  In order to mature further prospects for drilling, the Joint Venture has agreed to undertake a 2D seismic survey over various leads in the licence area.  The seismic recording is scheduled to take place in late 2008. The new exploration seismic is expected to mature for drilling a variety of prospects, both at the level of the Neocomian reservoir and shallower play levels where oil potential may be higher.

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