Aminex and Bowleven have joined Tanzania's Ruvuma PSA in a back-to-back agreement with Solo Oil
While Solo will retain a 12.5 per cent non-operated interest in Ruvuma PSA, Aminex will have an operated 37.5 per cent net working interest, and Bowleven will have a 50 per cent net working interest in the joint venture.
Solo will receive a US$3.635mn consideration from Aminex. The farming out of the 50 per cent stake to Bowleven is the result of a wider transaction between it and Aminex, which includes Aminex selling a 25 per cent stake in the Kiliwani North Development Licence to Bowleven with the option of acquiring a further 6.5 per cent.
The joint venture is subject to formal approval by the Tanzanian authorities and is expected to commence on 1 January 2016. Once approved, the agreement will enable the acceleration of operations in the Ruvuma PSA, including the drilling of two wells at Ntorya gas condensate discovery.