Statoil and ExxonMobil to invest up to USD 30 billion in LPG production in Tanzania
In the next ten years, up to USD 30 billion will be invested by Norway's Statoil and United States based ExxonMobil for LPG production in Tanzania.
Over USD 1 billion have already been spent in drilling exploration wells at Zafarani, Lavani and Tangawizi, situated between Kilwa and Mtwara in the deep sea. A part of the investment will also be earmarked for construction of pipelines and LPG processing plant at a location, which will be decided later.
Statoil and ExxonMobil have deployed an exploration team that is drilling more wells in the deep sea. The team comprising of about 20 locals as well as foreigners will conduct the exploration for the next 36 months.
The exploration began after Statoil and ExxonMobil discovered three trillion cubic feet of natural gas at Lavani well and one trillion cubic feet along with an earlier 5 Tcf discovery in the Zafarani sidetrack in the same block.
The officials are hopeful that after the exploration they will be able to find the minimum recoverable volumes of natural gas to go into commercial production by 2016 or 2017 and thereafter production can actually begin in 2021. Market performance, especially price of gas will also determine the decision to go into commercial production.
In this partnership, Statoil holds a 65 per cent stake and an operating licence on 5,500-square-kilometre Block 2 on behalf of Tanzania Petroleum Development Corporation (TPDC), while ExxonMobil has a 35 per cent stake.
More of similar updates will be shared at Africa LPG Trade Summit on 07-09 May, 2014 in Accra, Ghana.
For latest updates on the event, visit the official website, or contact Ms. Huiyan firstname.lastname@example.org / call +65 6346 9113.