BG’s latest findings pave way for second LNG unit in Tanzania

BG Group Plc (BG) and Ophir Energy Plc (OPHR) made a fourth gas discovery in Tanzania, increasing reserves closer to levels that will justify two liquefied natural-gas (LNG) production plants.

LNG is gas that’s chilled to a liquid for transport by ship.

The Jodari-1 exploration well indicated gross recoverable resources in the range of 2.5 to 4.4 trillion cubic feet, the companies said in statements in London. That brings results from all four of their wells drilled in Tanzania close to 7 trillion cubic feet.

BG assets in Tanzania
The result “has materially exceeded pre-drill estimates and represents the largest discovery in Ophir’s history,” Ophir’s Chief Executive Officer Nick Cooper said. The find is “a major step closer to the second LNG train.”

Ophir jumped as much as 9.5 percent in London trading and was at 438.7 pence as of 8:07 a.m. local time. BG added 1 percent to 1,507 pence.

Explorers are seeking gas in east African waters to supply LNG to India and China, the world’s fastest growing major economies. Ophir, which counts the Mittal family and New York hedge fund Och-Ziff Capital Management Group LLC among its largest investors, says it’s seeking partners to drill in other licenses off Tanzania.

Ophir and BG will now return the Metro-1 drillship to the Mzia-1 well, which is targeting 4.6 trillion cubic feet of gas.
Source: BloombergBusinessweeks, www.businessweek.com, reported by Brian Swint in London
Share on Google Plus

About Abduel Elinaza

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.