Payment of Kiliwani North Gas Receivables Update

RNS Number : 2874P

Scirocco Energy PLC

15 October 2021

 

15 October 2021

Scirocco Energy plc

("Scirocco Energy" or "the Company")

Payment of Kiliwani North Gas Receivables Update

Scirocco Energy (AIM: SCIR), the AIM investing company  targeting attractive assets within the European sustainable energy and circular economy markets, announces that the Joint Venture has reached an agreement with the Tanzania Petroleum Development Corporation ("TPDC") for the payment of outstanding monies owed for past gas sales to the TPDC.

Highlights

Aminex, on behalf of the Joint Venture, reached an agreement with the Tanzania Petroleum Development Corporation ("TPDC") for the payment of outstanding monies owed for past gas sales to the TPDC.

The agreed settlement follows constructive negotiations over the last few months between Aminex and the TPDC.

The settlement between the parties involves netting off past gas sales of US$6.77 million due to the Kiliwani North Joint Venture ("KNJV"), of which Scirocco Energy holds an 8.39% working interest, against licence and training fees and the profit share on the unpaid gas sales owed to TPDC.

As at 30 June 2021, and as previously reported, the KNJV was owed US$8.34 million by the TPDC. Of this amount, the KNJV has agreed to waive its claim for interest of US$1.57 million under the Kiliwani North Gas Sales Agreement ("GSA") on the unpaid gas sales to settle the matter and secure payment by the TPDC.

The TPDC is required to make a payment of US$4.37 million to Aminex within 30 days of execution of the settlement agreement, of which Scirocco Energy shall receive US$0.15 million its share of the gas sales net of remittance of indirect taxes and export duties.

Tom Reynolds, Chief Executive Officer commented:

"I am pleased that the parties and TPDC have reach a conclusion on this longstanding issue of the receivables associated with the Kiliwani North project. Through our engagement with the Joint Venture we are aware of the hard work on both sides to get this agreement in place and the Board of Scirocco thanks both Aminex and TPDC for their work in concluding this agreement which is beneficial to all parties and the project as a whole."

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018.

For further information:

Scirocco Energy plc Tom Reynolds, CEO Doug Rycroft, COO	[phone]
Strand Hanson Limited, Nominated Adviser James Spinney / Ritchie Balmer / Rory Murphy	[phone]
WH Ireland Limited, Broker Harry Ansell / Katy Mitchell	[phone]
Buchanan, Financial PR Ben Romney / Jon Krinks / James Husband	[phone]

 

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