Continental Focus, International Reach

Mega Gas Hit Offshore Tanzania

Monday, February 27, 2012

The latest discovery offshore East Africa was confirmed by the field’s operator, Statoil. The company, in a release, confirmed that it had made its first operated discovery in East Africa with the drilling of the Zafarani-1 well on Tanzania’s Block 2.

The well on Block 2, where Statoil is partnered with ExxonMobil, encountered indications of natural gas in the form of 120 meters of an excellent quality reservoir with high porosity and high permeability. The logging results now show that the discovery is a high impact discovery, so far proving up to 5 Tcf of gas in-place.

The gas-water contact has not been established and drilling operations are on-going.

"This discovery is the first Statoil operated discovery in East Africa and an important event for the future development of the Tanzanian gas industry. It is also a demonstration of how Statoil's exploration strategy of early access and high impact opportunities strongly supports the company's ambition for international growth," says Tim Dodson, executive VP for Exploration at Statoil.

"This discovery could potentially be a catalyst for large scale natural gas developments in Tanzania," says Yona Killaghane, Managing Director of Tanzania Petroleum Development Corp. (TPDC).

Just recently the partners signed an addendum to the PSA for Block 2 which stipulates the commercial terms in case of a development of natural gas resources in the block with the Tanzanian authorities.

The drillship, Ocean Rig Poseidon, after completing the drilling activities at Zafarani will move to drill a second well in Block 2 on the Lavani prospect.