Shell Unlucky In Tanzania’s Block 1 and 4 Offshore Drilling

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Block 1 and 4 operator shell failed to encounter any hydrocarbons at the Kitatange-1 well in Block 1 and Bunju-1 well in Block 4 both in Tanzania. According to Shell, after evaluation the operator confirmed that good quality reservoir was encountered in both wells.

The Noble Globetrotter 2 rig which has been drilling the wells has been demobilised from site.

The two wells which cost close to $80M into the well drilling programmes fulfill the final exploration commitments as per the exploration licences issued by the Ministry of Energy and Minerals (MEM).

Subsequent to the completion of drilling Kitatange-1, a bridging licence has been awarded for the existing discovery Locations in Block 1.

To date 17 Tcf of natural gas have been discovered in the two blocks. Among discoveries in Block 1 include: Taachui, Mzia, Mkizi, Jodari and Chaza while those in Block 4 include: Chewa, Ngisi, Kamba, Fulusi and Pweza.

The development of Blocks 1 and 4 is part of the Tanzania LNG project, which is a critical part of Tanzania’s national energy policy under the umbrella of the Vision 2025.

Shell formerly BG Tanzania has 60 percent interest in Block 1 and 4 while the other two joint venture partners in the blocks Ophir and Pavilion Energy retain 20 percent each.

Hussein Boffu runs a consultancy helping elite entrepreneurs reach their goals through actionable business planning. Contact him via email at hussein.boffu@tanzanapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.