Statoil finds natural gas offshore Tanzania

Norwegian oil and gas firm Statoil has encountered indications of natural gas in a "good quality reservoir" in the Zafarani-1 well in Block 2 offshore Tanzania, it said on Friday.

The firm added that it was too early to give any indication on the size and commerciality of the find. Statoil holds 65 percent of the bloc while ExxonMobil has the remaining 35 percent.

Statoil signed a production sharing agreement with the Tanzanian Petroleum Development Cooperation (TPDC) on 18 April, 2007 (Effective date is 15 June, 2007).

Statoil Tanzania AS is the operator with 65 per cent interest with ExxonMobil Exploration and Production Limited as partner with a 35 per cent interest.

The exploration period started in 2007 and is divided into three stages:

    * The first exploration period of four years with a 2D seismic commitment
    * The first extension period of four years with a one well drilling commitment
    * The second extension period of three years with a one well drilling commitment

The total area of Block 2 is 11,099 square kilometres, and it lies in water depths of between 400 and 3000 metres. This is a frontier area where no wells had been drilled before 2010.

A 6200-kilometre 2D seismic survey was acquired during the first quarter of 2008 and a 1600 sqkm 3D seismic survey was acquired in first quarter 2010.

The processed 3D data was received during third and fourth quarter of 2010 and is currently being evaluated for potential drilling in late 2011 or 2012.
Source: Reuters, af.reuters.com 
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