BG: Tanzania now at 15Tcf

Tuesday, December 10, 2013

BG Group has said its latest drilling campaign offshore Tanzania has increased its resource base across its three Tanzanian blocks to 15Tcf natural gas.

BG Group said Blocks 1, 3 and 4, which it operates, with partner Ophir Energy, also had further exploration upside.

The firm's chief executive Chris Finlayson said these resources were sufficient to justify a two-train LNG project in Tanzania and that the company's appraisal campaign would now focus on omptimizing a future development plan.

Image: The Deepsea Metro I drillship

"BG Group and its partner Ophir Energy, together with the partners in Block 2, Statoil and ExxonMobil, are continuing to make good progress in the assessment of a multi-train LNG project," he added. "We look forward to the Tanzanian government’s announcement of a decision on the location of an onshore site for an export facility."

Focus has increased on Tanzania in recent years. Ophir said in August, work selecting a site was nearing completion and a preferred site for Tanzania’s first multi-train LNG facility could be announced this year. At the end of October, BG said it had submitted a proposal for an LNG plant site for consideration by the government.

The Lindi region, in southern Tanzania, has been cited as a possible location. BG Group recently launched a road safety campaign in Lindi. Singapore-based investor Pavilion Energy recently agreed to take a 20% in the BG/Ophir joint venture partnership. The deal with Ophir, could pave the way for LNG export to Asia.

Last week, Norway's Statoil said a fifth natural gas discovery in Block 2, offshore Tanzania, had opened up a new play in the region. The Mronge-1 discovery, drilled in 2500m water depth by the Discoverer Americas drillship, 20km north of the Zafarani discovery, contained about 2-3 trillion cu ft (Tcf) natural gas in place at two separate levels, said Statoil.

BG said its latest drilling on the Mzia discovery, in Block 1, had increased its resource estimate to 4.7Tcf of total gross recoverable resources. The Mzia-3 appraisal well,was drilled about 6km north of the Mzia-1 discovery well, in 1780m water depth, using the Deepsea Metro I drillship.

BG said results confirm the reservoir sands are extensive and of similar quality to those found in the Mzia-1 and Mzia-2 wells. In addition, the gas-down-to level proven in Mzia-3 is about 100m deeper than in Mzia-2.

Further north, detailed technical analysis of the Block 4 discoveries Chewa, Ngisi and Pweza, which were also appraised and tested in BG's latest drilling campaign, was positive, with total gross recoverable resources in the block now estimated about 5Tcf.

"This means an extensive exploration and appraisal campaign of 14 wells, started in 2010 offshore Tanzania, has had a 100% success rate with nine consecutive discoveries and five appraisal wells, three of which included drill stem tests showing high flow rates," said BG.

BG Group, as operator, has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy holding 40%, prior to the deal with Pavilion.

BG Group has now transferred the Deepsea Metro-1 drillship to partner Ophir Energy, which will use it for a one-well campaign. The vessel will then return to BG Group for one exploration well in Kenya next year, before going back to Tanzania for further exploration and appraisal activities in Block 1, including a drill-stem test on Mzia-3, later in 2014.

Read more: Tanzanian investment to continue -http://www.oedigital.com/component/k2/item/3492-tanzanian-investment-to-continue

Categories: Natural Gas Rigs Deepwater LNG Drilling

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