Statoil calls Tanzania deepwater gas find 'high impact'

By OGJ editors

Logs now show that Statoil ASA and ExxonMobil’s Zafarani indicated deepwater gas discovery in Block 2 offshore Tanzania is a “high impact discovery,” having proved as much as 5 tcf of gas in place, Statoil said.

Yona Killaghane, managing director of Tanzania Petroleum Development Corp., said, “This discovery could potentially be a catalyst for large scale natural gas developments in Tanzania.”

A week ago, Statoil and ExxonMobil said the well, the first on the block, had encountered indications of natural gas (OGJ Online, Feb. 17, 2012). The latest word is that the well has encountered 120 m of excellent quality reservoir with high porosity and high permeability, has not found a gas-water contact, and is still drilling.

Statoil said the well is projected to 5,100 m but did not give its present depth or the depth of the gas indications.

After completing Zafarani in 2,582 m of water, the Ocean Rig Poseidon drillship, will move to drill the Lavani prospect on the 5,500 sq km block.

Statoil and ExxonMobil have signed an addendum to the production sharing agreement for Block 2 that sets out commercial terms in case of a development of natural gas resources on the block with the Tanzanian authorities.

Statoil operates Block 2 on behalf of TPDC with 65% working interest, and ExxonMobil has 35%. TPDC has the right to a 10% working interest in case of a development phase.

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