Statoil strikes new natural gas discovery off Tanzania

October 14, 2014 | Africa, Exploration / Discoveries

London, UK | – Norway’s multinational oil and gas exploration and production company Statoil and partner ExxonMobil have made a new natural gas discovery off Tanzania, adding to its existing resource base in the area.

The Giligiliani-1 exploration well discovery has added 1.2 trillion cubic feet of gas in place to the existing Block 2 volume, taking total gas in place to about 21 Tcf. The gas was discovered in the upper Cretaceous sandstone formation.

Statoil western hemisphere senior vice president Nick Madden said this discovery shores up an extension of the proven gas play.

“Our success rate in Tanzania has been high and opening up a new area will be key to continuing our successful multi-well programme,” he said.

The well was drilled on the western side of Block 2, in water depths of 2500 metres.

This is the joint venture’s seventh discovery on the block, preceded by five high-impact gas discoveries the Zafarani-1, Lavani-1, Tangawizi-1, Mronge-1 and Piri-1, and a discovery in Lavani-2.

Giligiliani-1 was drilled using the drillship Discoverer Americas, which will now move to drill the Kungamanga prospect in the central portion of the block.

The joint venture is looking at a possible liquefied natural gas project to incorporate the discoveries, with final investment decision due by the end of 2016.

Statoil operates the licence with a 65% working interest, while ExxonMobil holds the remaining 35% interest. The block covers 5500 square kilometres, with water depths between 1500 and 3000 metres.