I am under the impression that it now hinges on more than just pipeline compression/twinning upgrade and/or an access agreement as was earlier mooted by KEY.
KR recently said:
“Whilst the Kiliwani North #1 gas find is exciting, there are still a number of steps needed on the way to reaching economic returns from the gas pool. However, Key is confident that progress will occur.”
What is that "economic returns" mumbo jumbo all about?
Without details it is anyones guess as to what needs to be done.
Presumably KEY think that either gas prices are too low, or the current gas find is too small for the cost of 'simple' connectivity to be economic? Will siesmic resolve that conclusively? I doubt it. An extended flow test seems like a much better way to me. It would cost a couple of hundred K to link it into the pipeline and perform and extended test without flaring.
This project was previously being promoted as easy access to a nearby production facility and pipeline.
While KR is quick to trumpet success to the market, he has clammed up completely on the difficulties KEY must be having.
If the Tanz government are not complete clowns, I am sure they realize that at the MINIMUM they will need to 'arrange' for KEY to have access within the next few months, or it is tickets for the exploration campaign, and then they can blow that report out of their...
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I am under the impression that it now hinges on more than just...
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