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Statoil and ExxonMobil accumulate discoveries in Tanzania Block-2

Statoil celebrates Mdalasini-1 – Block-2 eighth success

Project Smart Explorer LogoThe Norwegian national oil company (NOC) Statoil and its partner the international oil company (IOC) ExxonMobil scored their eighth discovery in the Block-2 offshore gas fields concession in Tanzania on the East Africa.

Following the successful discoveries of large gas fields in Mozambique, the East Africa coast is delivering its good news to Tanzania with series of positive attempts in exploratory wells.

In 2007, Statoil entered Tanzania to acquire the Block-2 license in partnership with ExxonMobil.

Statoil_Tanzania_Block-2_MapStatoil and ExxonMobil share the interests in the Block-2 under a license agreement with the Tanzania Petroleum Development Corporation (TPDC or Tanzania Petroleum). 

According to this license agreement, Statoil and ExxonMobil share Tanzania Block-2 working interests during the exploration phase in such a way as:

Statoil 65% is the operator

 – ExxonMobil 35%

When Statoil and ExxonMobil will decide to turn the Tanzania Block-2 from the exploration phase into the development phase, the NOC Tanzania Petroleum will exercise its 10% working interests.

In February 2012, Statoil started its exploration program in the Tanzania Block-2, drilling series of thirteen wells.

From these thirteen exploratory wells, eight appeared to be successful, Giligiliani-1, Lavani-1, Lavani-2, Mronge-1, Piri-1, Tangawisi-1, Zafarini-1 and the lastest one Mdalasini-1.

Statoil evaluates Block-2 upsides for conceptual design

Through these discoveries, Statoil and ExxonMobil accumulated quantities of information to prepare an appraisal program to define where to explore further all the potential upsides of this Tanzania Block-2 before deciding on the most effective conceptual design to develop the project.

The Block-2 is only 50 kilometers from Tanzania coastline, but the reservoir is lying below more than 2,000 water depth.

Statoil_Tanzania_Block-2This configuration is very similar to the Norwegian North Sea where Statoil is used to work with the most appropriate technologies.

All the discoveries made in Tanzania Block-2 have a significant size, for the last one, Mdalasini-1, it ranges between 1.0 and 1.8 trillion cubic feet (tcf) of in-place resources of gas.

So far the Tanzania Block-2, is currently estimated to hold 22 tcf of in-place reserves.

From this base, Statoil and +ExxonMobil are far from having covered the entire Tanzania Block-2.

In that respect they plan to take two years more for the final evaluation of the Tanzania Block-2 in-place resources considering that usually each tcf in reserves is required to supply 1 million tonne per year liquefied natural gas (LNG) train.

As we could see in Mozambique where the reserves could be doubled in two years, a similar scenario in Tanzania should have a significant impact on Statoil and ExxonMobil strategy to go for front end engineering and design (FEED) on the offshore and onshore phases of the Tanzania Block-2 project.

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