Tanzania Still Loss-Maker for Wentworth
Canada-based, AIM and Oslo listed Wentworth Resources is the latest East Africa gas producer to report that the call on its Tanzanian gas production increased in July with the drier weather. But the firm's 2Q loss was deeper than a year ago as late payments depressed its revenue.
Managing director Geoff Bury said August 10 that 2Q2017 gas production was impacted by the rainy season when hydro-generation was available, but that gross gas sales (at 100% equity) from Mnazi Bay field in Tanzania had rebounded to an average for July of 61mn ft3/d, from 44.3mn ft3/d in June, but averaged just 30.7mn ft3/d in 2Q2017.
“We continue to maintain an average production guidance for the year of between 40 and 50mn ft3/d,” he said, referring to gross volumes at 100%. Wentworth has 31.94% equity in Mnazi Bay, operator Pertamina-owned Maurel & Prom has 48.06% and TPDC 20%; production began August 2015.
Delays in payments from state TPDC and Tanesco meant that Wentworth’s gas sales revenues were just $2.15mn in 2Q2017, down from $3.43mn a year ago, contributing to a net loss of $1.25mn in 2Q2017 (year ago: $0.17mn loss). Wentworth had said July 19 that payments were improving.
Onshore Mozambique, Bury said that Wentworth is proceeding with planning for an appraisal well in 2018 on the Tembo discovery but intends to secure an industry partner before actually drilling.
Tanzania – 'one of many projects' for Shell
While small onshore gas producers like M&P, Wentworth and Aminex struggle on and Tanzania's private miners face off expropriation challenges from the government, one major offshore gas resource holder Shell cautioned earlier this month that it may have more competitive LNG investment options outside Tanzania. Shell CEO Ben van Beurden pointedly remarked July 27: "The fiscal environment [in Tanzania...] needs to be conducive. I think there’s a bit of work to do there."
Mark Smedley