Sunday, December 23, 2012

Statoil Makes Third Tanzania Natural-Gas Find

By Mikael Holter

Dec. 21 (Bloomberg) -- Statoil ASA, Norway’s largest oil and gas producer, said it has made a third natural-gas discovery off the coast of Tanzania.

The company encountered a “significant gas-bearing reservoir” while drilling an appraisal well on the Lavani 1 discovery, Stavanger-based Statoil said in a statement today (21.12.2012).

Updated volumes for Block 2, where the company has already discovered 9 trillion cubic feet of gas at Lavani and Zafarani, will be given next year, it said.

“An increase in the upside potential of the Block is expected following further evaluations of the well,” Statoil said in the statement.

Statoil is expanding abroad to counter falling production from maturing fields in Norway. The company was confident it would find enough gas in its block off Tanzania to ensure a commercial development, which would probably result in export of liquefied natural gas, Head of Exploration Tim Dodson said in June.

The new find “is a good basis for a commercial development,” Statoil spokesman Baard Glad Pedersen said by phone today.

Statoil will now drill its fourth well of the year off Tanzania to appraise the Zafarani discovery, which reserve estimate was raised to 6 trillion cubic feet in June, and acquire 3D seismic imagery to identify new exploration targets in Block 2, Senior Vice President for International Exploration Nick Maden said in the statement.

Statoil operates the license with a 65 percent stake, while Exxon Mobil Corp. holds 35 percent. Statoil is in talks with BG Group Plc on a possible LNG export solution from Tanzania.

No comments: