Orca on 200bn/- gas expansion project


ORCA Exploration Group has announced commencement of drilling the first well in its US $130 million (over 200bn/-) expansion programme in Songo Songo Island.

The expansion intends to increase gas production capacity from the current 113 million standard cubic feet per day to over 200 million standard cubic feet per day in the coming months.

According to the firm's statement issued on Monday, the new gas production well (SS-11) on Songo Songo Island is part of the previously announced expansion drive to boost up gas deliverability.

"The company is playing its part in meeting Tanzania's urgent need for increased power generation and energy security," the statement said. The group operations in the country are managed by its subsidiary PanAfrican Energy (PanAfrican).

The rig will drill to a depth of approximately 2,400 metres with drilling continuing for approximately ten weeks. The programme also includes provision for the drilling of an offshore exploration well at a cost of $35 million (over 56bn/-) on the Songo Songo West prospect.

Orca is the main supplier of gas primarily for power generation to the Tanzania Electric Supply Company (TANESCO), Songas, and 38 industrial customers in Dar es Salaam. Over 85 per cent of this gas is used for power generation.

According to the company, the SS-11 well is being drilled by the Sakson Rig PR5 which was mobilized to Songo Songo Island in late 2011. The Sakson rig is a powerful, high-specification land rig that has been contracted as part of the ongoing development of the Songo Songo gas field.

Songo songo gas well
The well will be the seventh well in the Songo Songo field, which extends both onshore under Songo Songo Island and offshore to the west of the island in Kilwa District, some 185 km South of Dar es Salaam.

The use of natural gas from the Orca-operated Songo Songo field is estimated to have saved the country over $ 2 billion in other fuel costs since commercial operations began in 2004.

PanAfrican has for the past 10 years been the lead private sector investor in Tanzania's gas industry, producing up to 102 million standard cubic feet of gas per day. Orca Exploration is an international public company engaged in natural gas exploration, development and supply in Tanzania and oil and gas appraisal in Italy.
Source: tzexchange.blogspot.com
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