Challenges Ahead As LNG Plans Advance
BMI View: Continued exploration success is paving the way for Tanzanian LNG to enter the market from 2021 according to our current forecast. While we see Tanzania trailing Mozambique, where we expect first LNG from 2018/19, our view is that while challenges will be similar in both countries, the above ground risks in Tanzania appear greater at the outset.
Drilling success offshore Tanzania continues, with both BG Group and Ophir Energy reporting the Pweza-2 app raisal well intersected some 20 meters (m) of net gas pay on Block 4 at the end of August. The drillship will now move to spud the Pweza-2 well in a further test of the Pweza field, where gross recoverable resource estimates are now some 47.6bn cubic meters (bcm) .
Exploration and appraisal activity on Blocks 1,3 and 4 operated by BG Group (60%) and Ophir (40%) continues to prove up Tanzania's offshore potential. Recoverable gas resource estimates across the three blocks are new in excess of 364bcm. Promising activity also continues on Block 2, with partners Statoil (65%) and Exxon (35%), where gas in place is now estimated between 420 and 476bcm.
|Risks Firmly To Upside As E&A Advances|
|Tanzania Oil, mn bbl & Gas, bcm Reserves|