Statoil finds more gas offshore Tanzania

Oil giant Statoil ASA on Monday announced that it and partner Exxon Mobil had made another big gas discovery off Tanzania.

Statoil defined the discovery as "high-impact" and said it and Exxon Mobil had discovered between four and six trillion cubic feet of natural gas in the Tangawizi-1 well off Tanzania.

It is the third natural gas discovery above 250 million barrels of oil equivalent in a year in Block 2 off Tanzania.

"The success in Block 2 is the result of an ambitious and successful drilling campaign," said Tim Dodson, executive vice president for Exploration in Statoil. "We have so far completed five wells within 15 months and will continue with further wells later this year. Recoverable gas volumes in the range of 10-13 TCF brings further robustness to a future decision on a potential LNG project."

The Tangawizi-1 discovery is about 10 kilometres from the previous Block 2 discoveries Zafarani and Lavani, and was drilled at a water depth of 2,300 metres, Statoil said.

It estimated the total volumes of the discoveries in Block 2 at between 15 and 17 trillion cubic feet.

"I am very satisfied to see how the organisation is able to rapidly follow up on the exploration success both by being able to develop a successful drilling strategy and to plan and complete the drilling operations in a safe and cost-effective manner," Mr Dodson said.

"The Tanzania government is pleased to learn about additional gas resources discovered in Block 2 and remains optimistic on future developments," added Sospeter Muhongo, Minister for Energy and Minerals in Tanzania.

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

Image: © Statoil

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