BG and Ophir unveil Tanzania gas potential

OIL companies BG Group and Ophir Energy got a boost yesterday from a joint drilling programme offshore Tanzania, as they confirmed it had found good quality gas.

Finishing an appraisal programme, the drill stem test on the Jodari-1 well in the Jodari field – in which BG Group holds a 60 per cent interest and Ophir holds 40 per cent – flowed at a rate of 70m cubic feet of natural gas, with better-than-expected reservoir properties.

It also showed that the development wells could produce at higher rates, BG said yesterday.

The test is one of three successful wells in the field, in 1150 metres of water and around 39 kilometres off the coast of southern Tanzania.

Now the Jodari appraisal is complete, BG Group and Ophir will move to the adjacent Mzia-2 well.

BG Group has already produced seven natural gas discoveries offshore Tanzania.

Nick Cooper, chief executive of FTSE 250-listed Ophir Energy, said the company would continue to “chase the significant resource potential” of the field.

“This excellent flow rate is an important milestone in delivering Tanzania’s first LNG development,” he added yesterday.

“The test results confirm the Jodari reservoir’s world-class quality; and the potential for the field to underpin the LNG development.”

Separately, FTSE-listed BG Group announced its first production from the Everest East expansion project in the UK North Sea, marking the second of seven projects due to be brought on stream this year.