Page 64: of Offshore Engineer Magazine (Jul/Aug 2013)

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East Africa

Tanzanian investment

Tanzania has become hot to continue property, with BG Group and Statoil eying LNG export from the gas-rich offshore region.

anzania’s recent rise up the resource rankings has However, recent gas fnds have changed Tanzania’s fortunes. been fast, despite it having taken a long time to reveal BG and partner Ophir have made six consecutive discoveries in its potential reserves. deepwater Blocks 1, 3, and 4, while Statoil and partner ExxonMobil

T

While drilling offshore started in the 1950s, the frst production have made three discoveries in Block 2. did not happen until 2004, from the 1974-discovered Songa Early design studies are now being worked on for the country’s

Songa gas feld. frst LNG processing trains, with plans to reach a fnal invest-

Nearly 10 years on, Songa Songa, operated by Orca Explora- ment decision by 2016-17.

tion, a subsidiary of Toronto-listed PanAfrican Tanzania’s government estimates there are

Energy, is one of only two felds producing. The 41.7Tcf of recoverable natural gas reserves in

Mnazi Bay development, gas from the Mnazi and the East African Rift Valley and in deep water

Msimbiti felds, is the second. Mnazi Bay produc- offshore. The country is working on new policies tion currently supplies the local Mtwara Power for the upstream sector, including restructuring

Plant but the Tanzanian government recently the state-run Tanzanian Petroleum Development

BG’s licenses offshore received Chinese bank support to fund a 532km Corporation (TPDC), which sets exploration and

Tanzania pipeline to the capital Dar-es-Salaam. production policies, making operators list on a

Historically, lack of infrastructure, along with little 2D data, local stock exchange, and creating a gas revenue fund. th has hindered further development in the country, which ranks 152 The country’s delayed 4 licensing round is expected to launch out of 185 in the lower quartile of the Human Development Index. in October, with seven deep offshore blocks to be offered.

Petrobras-led JV with Shell added Block 6 to its acreage, fol-

Early days

More than 102,000 sq km of deepwater offshore acreage has lowed by Block 8. been awarded off Tanzania in total, most since 2000. Tanzania’s frst deepwater drilling campaign was operated

Shell was awarded Blocks 9-12 in 2003, but it is still wait- by Ophir, in Blocks 1 and 4 in 2010, partnered by BG Group. ing to agree a production sharing agreement to allow it to However, before deepwater exploration could start, the start exploration activities. country needed investment in port and logistics infrastruc-

During 2005-06, Ophir was awarded Blocks 1, 3 and 4, ture, as well as agreements on commercial contracts with covering 20,850sq km of the Deep Mafa Offshore basin and government. northern portion of the Rovuma basin, Statoil was awarded Over two years, Ophir negotiated terms for an LNG gas

Block 2, with partner Exxon, and Petrobras, as operator in a commercial project for Blocks 1, 3 and 4 withTPDC. Ophir 50% owned joint venture with Shell, Block 5. In 2006, the Energy and Petrobras also agreed in 2009 to join forces and

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