Sufficient resources for Tanzania project

BG Group has announced an increase in total recoverable resources for the Mzia discovery and across three blocks offshore southern Tanzania, marking the conclusion of a successful drilling and testing campaign.

The campaign confirmed Mzia as the second giant gas discovery in BG Group’s acreage offshore Tanzania, with 4.7 trillion ft³ of total gross recoverable resources.

The Mzia-3 appraisal well, drilled approximately 6 km north of the original Mzia-1 discovery in 1780 m of water, has been cored and logged. Results confirm the reservoir sands are extensive and of similar quality to those found in the Mzia-1 and Mzia-2 wells.

The company summarised its recent exploration and appraisal campaign:
The campaign of 14 wells started in 2010, has had a 100% success rate with 9 consecutive discoveries and 5 appraisal wells, 3 of which included drill stem tests showing high flow rates.

BG Group CEO Chris Finlayson commented: "We have sufficient resources for a two-train LNG project in Tanzania. The aim of our appraisal programme now is to optimise the future development plan and place the most economic gas into the proposed project first to extract the most value across the chain.

"Onshore, BG Group and its partner Ophir Energy, together with the partners in Block 2, Statoil and ExxonMobil, are continuing to make good progress in the assessment of a multi-train LNG project. We look forward to the Tanzanian government’s announcement of a decision on the location of an onshore site for an export facility."

BG Group has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, while Ophir Energy holds 40%.

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/exploration/10122013/bg_group_resources_update_557/