Sunday, November 6, 2016
Shell, Pavilion Energy, and Ophir Energy have started their first drilling program offshore Tanzania. The JV partners will drill two wells on Blocks 1 and 4 in Tanzania’s Mafia Deep Basin using the Nobel Globe Trotter 2 rig.
The JV partners will invest an estimated $80 million in the drilling program. The two wells will meet the remaining exploration requirements as per the exploration licenses issued by the Ministry of Energy and Minerals (MEM).
BG Group was the original operator of the blocks, but operatorship fell under Shell’s purview when the company acquired BG earlier this year.
Shell and its JV partners are working with TPDC and the Block 2 partners, ExxonMobil and Statoil, on future development of Tanzania LNG. The project is being developed at a time of great industry change and historic low oil prices. In the current investment climate, there is a critical need to have strong project fundamentals, including government support and cooperation.