Shell readies for exploration drilling off Tanzania’s coast
Shell became operator on the blocks after taking over BG Group in February
What you need to know:
OPHIR EXPENDITURE PLAN FOR SECOND HALF
• Thailand - completion of the Bualuang water debottlenecking project $11 million
• Indonesia – seismic data on the West Papua and Aru blocks $11 million
• Tanzania – 2 well programme on Blocks 1 and 4 operated by Shell $20 million
The $20m drilling program, due to start in the fourth quarter, will comprise two wells on Blocks 1 and 4 and targets more than one trillion cubic feet of gas
Dar es Salaam. Oil major Shell is planning to start exploration drilling offshore Tanzania later this year, according to partner Ophir Energy.
The $20 million drilling program, due to start in the fourth quarter, will comprise two wells on Blocks 1 and 4 and targets more than one trillion cubic feet (TCF) of gas, Ophir said as it announced its six-month results ending June 30, 2016.
Shell became operator on the blocks after taking over BG Group in February this year.
“We have experienced an increased Government focus on key items to enable the development and there is now a political impetus to accelerate the project. This was confirmed by the award of the land for the location of the midstream facilities,” the firm said in a statement published yesterday.
The well on Block 1 will target Kitatange, with an estimated mean recoverable volume of 1.1 TCF. The well on Block 4 will target Bunju with an estimated 1.4 TCF. The wells, which have been given 40 per cent chance of success, will fulfill outstanding exploration requirements on the licenses.
Meanwhile, pre-front end engineering and design (FEED) is progressing on an onshore Liquefied Natural Gas (LNG) plant, which would take in Blocks 1 and 4, as well as Block 2, held by Statoil and ExxonMobil. FEED is expected to start following the completion of the LNG site acquisition, the geotechnical investigations and engineering studies.
Concept selection for the upstream part of the project which will determine the configuration and production rates from each of the fields. Ophir’s chief operating officer Mr Bill Higgs said: “Shell sees this as an LNG project that ranks well in their portfolio. Shell is currently looking for ways to reduce the cost structure for the LNG project.”
Meanwhile, Ophir has reduced the expected cost to first gas on its Equatorial Guinea Fortuna floating LNG project from $450-500 million down to $450 million.
