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| Mtwara Power Plant |
Wentworth Resources on Thursday announced the sale of its subsidiary
Mtwara Power Plant to Tanzania Electric Supply Company after reaching a 13.5
million US dollars (21.6bn/-) agreement.
According to a statement posted on its website, the company said it was
off-loading its 100 per cent ownership of 18Mega Watts plant to the state power
firm including gas-fire power plant and
associated assets.
Wentworth Managing Director, Geoff Bury, commented on
the sale saying; "We believe the sale and purchase of the power plant is
beneficial to both parties.
"This transaction provides us with further non-dilutive capital as
we look to focus on our core strategy of exploring for hydrocarbons and
developing known natural gas resources." TANESCO's Public Relations
Manager, Badra Masoud confirmed the purchasing of the plant but said the
transaction would not affect current tariffs.
"Tariffs will remain the same - we plan to increase power
generation to boost investments in southern regions," Ms Masoud said.
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| Ms Masoud |
Despite the sale, the company said it looks forward to continuing to be
a reliable, long-term gas supplier to the Mtwara Power Plant and other parts of
Tanzania.
Mtwara Power Plant posted a profit of 206,000 US dollar (329.6m/-) in
nine month to September 2011 compared to a loss of 404,000 US dollar (646.4m/-)
in 2010, after a revenue increment of 7.0 per cent to 5.2 million US dollar
(8.32bn/-).
In June 2010, Wentworth purchased 100 per cent share of the Mtwara
Power Plant from Artumas Group. On
completion, Artumas was supposed to receive proceeds of between 8.0 million US
dollars (about 12.8bn/-) and 13.2million US dollar (about 21.12bn/-) in cash
net of transaction costs.
Last month, Wentworth Resources acquired Cove Energy's Interest in
Mnazi Bay Concession. The firm is an independent oil and gas company with gas
production and a committed exploration programme in the Ruvuma Basin of
southern Tanzania and northern Mozambique.
Source: The Daily News,www.dailynews.co.tz, reported by Abduel Elinaza
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