APT enhances stake in Ruvuma Asset with acquisition from Scirocco Energy

Business Monday 06/November/2023 13:34 PM
By: Times News Service
APT enhances stake in Ruvuma Asset with acquisition from Scirocco Energy

Muscat: ARA Petroleum Tanzania Limited (APT), an integral part of ARA Petroleum in Oman, announced the successful completion of the acquisition of an additional 25 per cent interest in the Ruvuma Asset from Scirocco Energy Plc (SCIR). With this acquisition, APT's stake in the Ruvuma Asset has increased to 75 per cent, making it a significant player in the region's energy sector. The remaining 25 per cent interest in the Ruvuma Asset is held by Aminex Plc.

The Ruvuma Asset, located in southern Tanzania, has been a focal point of exploration and development activities. A significant milestone was achieved in 2011 when a gas discovery was announced at the Ntorya location following the drilling of the Ntorya-1 well. This success was further substantiated in 2017 with the drilling of the Ntorya-2 well, which encountered a substantial hydrocarbon-bearing structure.

Commenting on the completion of the acquisition, Sultan Al Ghaithi, CEO of ARA Petroleum stated, "This further investment in the Ruvuma Asset reaffirms ARA's confidence in the project. ARA is now well-positioned to take decisive steps towards developing the asset and ensuring that the natural gas produced from the Ntorya Field is introduced to the market as quickly as possible. We remain dedicated to contributing to Tanzania's energy sector, fostering economic growth, and ensuring the sustainable development of the region's natural resources. Additionally, I would like to thank the Government of Tanzania for the support they have continually extended to expedite this project."

Since 2020, APT has been actively involved in the Ruvuma Asset, having acquired a 50 per cent interest and assuming the role of the operator for the asset. Operations and investments gained momentum, leading to the commissioning of a large-scale 3D seismic survey covering an area of approximately 335 square kilometres. In a significant move towards the asset's development, APT has meticulously prepared and submitted a comprehensive Field Development Plan to the Tanzanian government in July 2023.

Looking ahead, APT is poised for further exploration and development activities in the Ruvuma Asset. Plans are underway to drill another exploration well in 2024, followed by the strategic execution of the approved development plan. These initiatives reflect APT's commitment to the responsible exploration and utilisation of Tanzania's natural resources.