Tanzania discovery for Statoil

Friday, December 6, 2013

Norway's Statoil has said a fifth natural gas discovery in Block 2 offshore Tanzania has 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, contains about 2-3 trillion cu ft (Tcf) natural gas in place at two separate levels.

The main accumulation is at the same stratigraphic level as proven in the Zafarani-1 well in Block 2. The Zafarani-1 discovery was made in 2012 and was a play opener for the block.

Image: Block 2, showing Mronge and the partnership's previous discoveries. 

The secondary accumulation was encountered in a separate, younger gas bearing reservoir, in a play previously untested in Block 2, said Statoil, operator in the block, with partner ExxonMobil.

Mronge-1 volumes take the total in-place volumes to 17-20Tcf in Block 2, said the firm.

Focus has increased on Tanzania in recent years. Major discoveries by BG Group have led to plans for multiple LNG trains in the country, in order to open up an export market. Singapore-based investor Pavilion Energy recently agreed to take a 20% in the joint venture partnership looking to develop natural gas finds in Blocks 1, 3 and 4 off Tanzania. The deal with Ophir Energy, a partner with BG Group in Blocks 1, 3 and 4, could pave the way for LNG export to Asia.

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. 

Discussions were held with the Tanzanian government and state-oil firm Tanzania Petroleum Development Corp, as well as neighboring Block 2 co-venturers—Statoil and ExxonMobil—who would be involved in jointly developing an LNG facility.

The Lindi region, in southern Tanzania, has been cited as a possible location. BG Group recently launched a road safety campaign in Lindi.

The Mronge-1 discovery is the Statoil/ExxonMobil partnership's fifth discovery in Block 2. The first three natural gas discoveries were made during the first drilling phase, with Tangawizi-1, Zafarani-1 and Lavani-1, and a deeper discovery in a separate reservoir in Lavani-2.

The Statoil-operated partnership started its latest drilling campaign in Block 2 in September 2013. In addition to Mronge-1, the campaign includes drilling several new prospects and appraising previous discoveries.

Following Mronge-1, the partnership is scheduled to appraise Zafarani.

Statoil operates the license on Block 2, on behalf of Tanzania Petroleum Development Corporation (TPDC). Statoil has a 65% working interest, with ExxonMobil Exploration and Production Tanzania Limited holding the remaining 35%.

Statoil has been in Tanzania since 2007, when it was awarded the operatorship for Block 2.

Categories: LNG Natural Gas Africa

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