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ARA Petroleum Tanzania (APT), which took over the operatorship of the onshore Ruvuma PSA in Tanzania last year, has received a two-year extension of the license. The granting of the extension was necessary to complete key exploration activities on the block, including the acquisition of 200 km2 of 3D seismic data and the drilling of the Chikumbi-1 exploration and appraisal well (formerly known as Ntorya-3). Completion of the exploration programme will further support the conclusion of negotiations of the Gas Terms for the Ruvuma PSA and pave the way for the development of the Ntorya Gas Project. The development of the Ntorya gas accumulation has the potential to be Tanzania’s next big domestic gas project. Located in southern Tanzania where Maurel & Prom produces gas from the Mnazi Bay PSC since 2015, Ntorya used to be operated by Aminex’ subsidiary Ndovu Resources with a 75% interest before APT took over operatorship of the asset with a 50% interest last year. Aminex has since then retained a 25% interest in the license. The Ntorya accumulation is located within the onshore Ruvuma Production Sharing Agreement (PSA) signed in October 2005, which contains the Mtwara licence and the Ntorya development area, the latter being currently in negotiation. The PSA was operated by Tullow Oil until 2011 and saw the successful drilling of the Likonde-1 well in 2010, the Ntorya-1 well in 2012 and the Ntorya-2 well in 2017. Both Ntorya-1 and Ntorya-2 successfully tested gas with flow rates of 20 MMscf/d and 17 MMscf/d respectively, while Likonde-1 encountered gas shows. As a result, Ndovu applied to the Ministry of Energy for Tanzania in September 2017 for a 25-year development licence over the Ntorya area, with the application recommending the drilling of one well, the acquisition of 3D seismic over the Ntorya Field and the construction of a raw gas pipeline tied to the National Gas Gathering System at the Madimba plant, starting point of Mnazi Bay-Dar es Salam gas pipeline. In April 2020, Ndovu Resources secured a one-year extension of the Ruvuma Licence, almost three years after it applied for it. The extension did not provide enough time to complete the exploration programme, reason why new operator APT had to apply for another one which was secured a lot faster.
Located just southeast of Nigeria’s capital Abuja, the State of Nasarawa is often overlooked to the benefits of the Federal Capital Territory or bigger industrial states like Kaduna to the north and Kogi to the south. But its government is actively trying to change that and developing new private sector cooperation to boost public infrastructure. In August, its state executive council approved the set-up of five new public-private partnerships (PPPs) to boost development across the state and revitalize its economy. They notably follow the adoption of a new law setting up the Nasarawa Investment & Development Agecy (NASIDA) and concerted efforts to support private sector growth. Chief amongst those projects is the Nasarawa Technology Village in partnership with ABS Blueprint and Modern Shelter. The PPP project integrates housing, technology centers and commercial facilities and echoes a similar venture developed in Abuja, the Abuja Technology Village Science and Technology Park (STP) and Special Economic Zone (SEZ). In transport, the state is pushing ahead with the establishment of the Nasarawa Transport Company to support trade and investment. The initial steps notably rely on the construction of modern bus terminals in various stage of development across the state. Healthcare is another priority with the concession of services offered within the Dalhatu Araf Specialist Hospital in the state capital, Lafia. The operations and maintenance and three key departments within the facility are being given to the private sector, including radiology, laboratory, and mortuary. The Concession Agreement for the Concession of Radiology and Lab Services was signed on September 6th this year with DNA Labs Limited. If successful, this innovative concession model would boost private sector investment in the state’s healthcare system while improving service delivery. Because of their continued fiscal deficits and unstable macroeconomic outlook, most Nigerian states do not qualify to issue sub-national bonds that could support their infrastructure development. As a result, several state governments have been reviewing their legislation to become more competitive and attract private sector investment. The move is seen as encouraging to diversify economic activity beyond Lagos and creating a healthy competition between states.
