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.
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| 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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