Scirocco Energy plc has agreed a two-month extension for the sale of its joint venture Ruvuma gas interests in Tanzania to allow more time for tax clearance.
DEVELOPMENT LICENCE
The company said that the process was taking longer than expected, prompting the agreement with operator ARA Petroleum Tanzania (APT) to amend the long stop date from 30 June to 31 August 2023.
APT is finalising gas sales arrangements and the award of the development licence for Ruvuma.
The licence could accelerate earlier development of commercial gas sales from Ruvuma than initially thought by Scirocco, which would trigger earlier contingent payments under the sale terms.
In addition to the expected gross completion proceeds of $2.5 million, accelerated development has the potential to trigger the FID contingent payment of $3m within Q3 of 2023.
Chief executive Tom Reynolds added that Scirocco believed it was on course to complete the sale within the new timeframe.
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