By Kjetil Malkenes
OSLO--Norwegian oil giant Statoil ASA STO +0.29% said Monday it and partner Exxon Mobil Corp. XOM -0.90% have made the third natural gas discovery above 250 million barrels of oil equivalent in a year in Block 2 off Tanzania.
Statoil defines discoveries of that size as "high-impact." The company said it and Exxon Mobil had discovered between four and six trillion cubic feet of natural gas in the Tangawizi-1 well off Tanzania.
A range of discoveries in Mozambique, Tanzania and Kenya have transformed East Africa into one of the most promising energy provinces in the world, potentially rivaling Qatar and Australia in supplying gas to Asian markets.
"The success in Block 2 is the result of an ambitious and successful drilling campaign," said Tim Dodson, Statoil's executive vice president for Exploration. "We have so far completed five wells within 15 months and will continue with further wells later this year."
Statoil estimated the total volumes of the discoveries in Block 2 at between 15 and 17 trillion cubic feet. Recoverable gas volumes of 10 to 13 trillion cubic feet "brings further robustness to a future decision on a potential liquefied natural gas project," said Mr. Dodson.
The Tangawizi-1 discovery is about 10 kilometers from the previous Block 2 discoveries Zafarani and Lavani, and was drilled at a water depth of 2,300 meters.
Statoil has been the operator of the Block 2 license on behalf of Tanzania Petroleum Development Corporation (TPDC) since 2007, and has a 65% working interest. Exxon Mobil has a 35% stake.
Source: Market Watch (Wall Street Journal)
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