BG Group raises Tanzania resources to 15 Tcf

Posted on 11 December 2013

BG Group has increased total recoverable resources for the Mzia discovery and across Blocks 1, 3 and 4 offshore southern Tanzania, marking the conclusion of a successful drilling and testing campaign.

The campaign confirmed Mzia as the second giant gas discovery, after Jodari, in BG Group’s acreage offshore Tanzania, with 4.7 trillion cubic feet (Tcf) of total gross recoverable resources. Total gross recoverable resources across BG Group’s Blocks 1, 3 and 4 are now estimated to be approximately 15 Tcf, with further exploration upside.

The Mzia-3 appraisal well, drilled approximately 3.7 miles (6 km) north of the original Mzia-1 discovery in 5,840 ft (1,780 meters) of water, has been cored and logged. Results confirm the reservoir sands are extensive and of similar quality to those found in the Mzia-1 and Mzia-2 wells. In addition, the gas-down-to level proven in Mzia-3 is approximately 328 ft (100 meters) deeper than that of Mzia-2.

Further north, detailed technical analysis of the Block 4 discoveries Chewa, Ngisi and Pweza, which were also appraised and tested in the campaign, was positive with total gross recoverable resources in the block now estimated around 5 Tcf.

An extensive exploration and appraisal campaign of 14 wells started in 2010 offshore Tanzania and has had a 100% success rate with nine consecutive discoveries and five appraisal wells, three of which included drill stem tests showing high flow rates.

“We have sufficient resources for a two-train LNG project in Tanzania. The aim of our appraisal program now is to optimize the future development plan and place the most economic gas into the proposed project first to extract the most value across the chain,” Chris Finlayson, BG Group chief executive, said. “Onshore, BG Group and its partner Ophir Energy, together with the partners in Block 2, Statoil and ExxonMobil, are continuing to make good progress in the assessment of a multi-train LNG project. We look forward to the Tanzanian government’s announcement of a decision on the location of an onshore site for an export facility.”

BG Group as operator has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy holding 40%.

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