Aminex PLC (LSE:AEX) said it has reached a settlement with the Tanzania Petroleum Development Corporation (TPDC) over past gas sales that will result in receiving a net cash inflow of approximately US$1.85mln.
Discussions with TPDC over the last few months resulted in this agreed deal, it added.
The deal sees US$6.77mln worth of past gas sales due to the Kiliwani North Joint Venture netted off against amounts owed to the TPDC, including licence and training fees and its profit share on the unpaid gas sales.
TPDC is required to make a payment of US$4.37mln within 30 days of execution of the settlement agreement and after distribution of partner shares of the gas sales, tax and duties will mean Aminex retaining around US$1.85mln.
Charlie Santos, Aminex’s executive chairman, said: “We are delighted with the settlement reached with the TPDC, which brings some much-needed funds into the company.
“This settlement reflects the commitment of the TPDC to work constructively with its partners and the determination of the Tanzanian authorities to establish conditions that will spur further investment into the Tanzanian energy sector.”