BG Tanzania finds unexpected huge gas field

DAR ES SALAAM, TANZANIA – BG Tanzania has disclosed that tests show a larger than expected natural gas field about 45 kilometres off the Mtwara coastline.
The test on the Mzia-2 well the southern Tanzanian waters flowed at a maximum rate of 57 million standard cubic feet of natural gas per day.
BG announced that it had completed another successful drill stem test in Block 1 offshore Tanzania, with initial results from the Mzia-2 well showing better than expected properties.
“This is more gas than was expected to flow from this well, and therefore a positive development,” the BG Group’s Chief Executive, Chris Finlayson told East African Business Week.
A drill stem test is a standard procedure within gas exploration activities, and helps to determine the properties of the gas reservoir.
Finlayson said the successful Mzia-2 drill stem test follows completion of a multi-well appraisal programme earlier this year on the nearby Jodari field.
He said results from the current campaign demonstrate the excellent quality of their discoveries along offshore Tanzania, where their resources, and those of other participants in the region, are helping support plans for a multi-train LNG (Liquid Natural Gas) export project.
“While we continue exploration and appraisal offshore, BG Group and its partners are also jointly studying suitable sites for a potential onshore LNG terminal and anticipate providing proposed locations to the Government of Tanzania in the next few months,” he said.
An LNG plant is required to commercialise the gas finds, so Tanzania can fully benefit from its natural gas, Finlayson said.
BG Group’s President and Asset General Manager for East Africa, Derek Hudson said that the successful drill stem test on Mzia-2 is another important milestone in developing Tanzania’s natural gas resources, coming less than 12 months after the original Mzia discovery.
“This swift progress reflects the commitment of all stakeholders, particularly the government and the communities, in which we operate, to ensuring the full benefits of the country’s natural gas resources are realized,” Hudson said.
The drillship Deepsea Metro-1 has now relocated to Block 4 to drill an exploration well, Ngisi-1, adjacent to the existing Pweza and Chewa discoveries.
BG Group will use data from the current exploration and appraisal campaign and a recently completed 3-D seismic survey to help identify new offshore targets for a third exploration programme beginning in late 2013. 
These ongoing activities represent significant investments by BG Group in Tanzania and are indicative of our positivity for the gas industry in the country, he added.

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