Shell, JV Partners gear up to commence drilling programme in Tanzania

Shell and its joint venture partners, Pavilion Energy and Ophir Energy have announced the start of its drilling programme covering two wells in Block 1 and 4, located in the Mafia Deep basin off Tanzania.

The rig supporting the programme – the Noble Globe Trotter 2 – is expected to commence operations towards the end of October 2016 and will be drilling in waters up to 2300 metres deep.

The joint venture partners will be investing close to $80M into the well drilling programmes.

The two wells will meet the remaining exploration requirements as per the exploration licences issued by the Ministry of Energy and Minerals (MEM). Shell became the operator of the two blocks in February 2016, after its combination with BG Group, and has been working closely with the Tanzania Petroleum Development Corporation (TPDC) and MEM to deliver these wells safely.

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 and its Block 1 and 4 partners are working with TPDC and other Block 2 partners on future development of Tanzania LNG. The project is being developed at a time of great industry change and historic low oil prices. In the current investment climate, there is a critical need to have strong project fundamentals, including government support and cooperation.