“The new discovery brings the total amount of natural gas volume in the region‘s Block 2 to approximately 22 trillion cubic feet,” Minister for Energy and Minerals George Simbachawene specified.
He went on to detail that the new discovery is offshore and that the well, Mdalasini -1, has been discovered by Statoil –one of the international oil and gas exploration firms operating in the country.
According to minister, the discovery is located 2,296 metre below the water surface depth at the southernmost edge of the block and has been made in the tertiary and cretaceous sandstone.The official said during this development phase Tanzania Petroleum Development Corporation (TPDC) has the right to acquire 10 per cent of the working interest from joint venture partners.
However, he pointed out that the government is working on a new law that will stress transparence in natural gas and mining contracts because according to him, secrets in the current mining contract are due to the weak laws.
Short of specifying the exact month that the law will come, he said the ministry is in the final stages of presenting it to the National Assembly and it will do so ‘any time from now’ he said.
“The Mdalasini-1 discovery marks the completion of the first phase of an efficient and successful multi-well exploration programme offshore Tanzania,” explained Nick Maden, Senior Vice Presidents for Statoil's exploration activities in the Western Hemisphere.
“Since the start of the programme in February 2012, we have drilled 13 wells and made eight discoveries, including Mdalasini-1,’ he went on to detail.
“We still see prospectus in the area, but after appraising the Tangawizi-1 high-impact discovery, which was made in March 2013, there will be a pause in the drilling to evaluate the next steps and to mature new prospects,” the firm’s official added.
According to him, Statoil operates the license on Block 2 on behalf of Tanzania Petroleum Development Corporation (TPDC) and has a 65 per cent working interest.
Tanzania has so far discovered a total of 50 trillion cubic feet of natural gas (TCF) onshore and offshore fields at the Mnazi bay in Mtwara and at the remote Island of Songo Songo in Lindi Region, according to the Petroleum Development Cooperation (TPDC) report ending June 2014.
Economic moguls have estimated that the huge gas deposits will earn the country an income of UDS2.5 billion annually in coming years.
Gas and oil industry sources say the ongoing exploration exercise of the highly lucrative resource seems to be paying off as 18 offshore wells out of 19 drilled so far have abundant gas deposits.
TPDC maintains that more drilling works will be intensified as prospects for gas and oil findings are hopefully high in various places across the country.
As Mtwara and Lindi hold a key role in the gas industry development, it is envisaged that residents there will have a large share of the benefits accrued from the resource including electricity supply, water, education, tarmac roads, jobs and industries.
SOURCE: THE GUARDIAN
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