USD80m Gas Drilling Commence in Mafia Basin in Tanzania
Oil and gas company Shell, together
with its joint venture partners Ophir Energy and Pavilion Energy, recently
started a USD80m drilling program in the Mafia deep offshore basin in Tanzania.
The drilling program, covering two wells in
Block 1 and 4 in the Mafia basin, will be executed in waters up to 2,300 meters
deep. Blocks 1 and 4 have 17 trillion cubic feet (tcf) gross contingent
resource.
Shell is the operator of these two blocks with
60% interest, while the remaining 40% are held by its partners, Ophir Energy
(20%) and Pavilion Energy (20%).
The development of Blocks 1 and 4 is
part of the Tanzania Liquefied Natural Gas (LNG) project. The LNG plant will be
located in the southern town of Lindi close to the deep-sea offshore blocks.
For this, the Government will have to build
gas pipes from the sea to the plant with length of 100–200km. The construction
of the plant is expected to take up to 40 months at the cost of USD30b with
production expected to commence in 2021 or 2022.
Tanzania Natural Gas Tanzania has the second
largest natural gas reserves in East Africa with more than 57 trillion cubic
feet (tcf) so far discovered, behind Mozambique with 100 tcf according to the
Energy Information Administration (EIA).
The Tanzania Petroleum Development
Corporation (TPDC) estimates that the country’s gas fields are large enough to
make Tanzania the next natural gas hub in Africa.
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