UK Gas Company Test Results Support Tanzania Natural Gas Hub Project

UK-based BG Group plc has reported results from a second drillstem test (DST) offshore in the Southern Tanzania Mzia discovery, which shows higher than expected flows of gas and provides additional support for the construction of a hub to supply the onshore Tanzania liquefied natural gas (LNG) project.

The DST on the Mzia-3 appraisal well, showed a sustained gas production at a maximum flow rate of 101 million cubic feet per day, which almost doubles the flow rate measured at the Mzia-2 appraisal well last year.

According to Sami Iskander, BG Group’s COO, results from the Mzia-3 DST support the company’s efforts to optimize the value of a development in the block 1 discoveries.

“The excellent results from this latest drillstem test further reduce reservoir risk, a critical factor as we progress design of the upstream production facilities and infrastructure,” said Iskander.

The BG Group has partnered with Statoil, Exxon Mobil, and Ophir Energy on a plan to construct a two-train LNG export terminal that is projected to begin operations in early 2020 with a final investment decision scheduled for 2016.

The BG Group is the operator of 1, 3, and 4 offshore Tanzania, holding a 60% interest in the blocks, with Ophir Energy and Pavilion Energy each holding 20%.

RELATED:  UK Pledge USD 450 M to Support Tanzania Development