Block 1

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Overview

Block 1 is located in the Mafia Deep Basin off-shore from the Rovuma and Rufiji deltas on the border with Mozambique. Water depths range from 100 to 3,000 metres. It is operated by Shell with 60% working interest. Ophir Energy and Pavillion Energy each hold 20%.[1] Six discoveries have been made in Block 1 since 2010 within 100 kilometres of the shore and in water depths of 900 to 1,600 metres. Four of these are Tertiary reservoirs (Chaza, Jodari, Jodari North and Mkizi) and two are Cretaceous (Mzia and Taachui). Mzia (4.7tcf total gross resource) and Jodari (4 tcf total gross resource) are both classified as giant discoveries. Four Drill Stem tests have been conducted on Jodari, Mzia (two DSTs) and Taachui. [2]

Chronology

  • In May 2010, Ophir Energy farmed down a 60% stake and operatorship in Block 1 to the BG Group. [4]
  • In April 2011, Ophir Energy and BG announced their first gas discovery in Block 1. The discovery was made in the Chaza-1 exploration well. The well is located 18 km from the coastline 952m deep in water. The well has a high quality gas bearing reservoir.[5]
  • In March 2012, the success registered at Jodari-1 well in Block 1 was announced. The estimated recoverable mean resource numbered 3.4 TCF.[6]
  • In May 2012, BG and Ophir Energy first announced a gas discovery in the Mzia-1 well with mean recoverable resources estimated at 3.5 TCF with a significant potential upside. The well is located 45km off the coast of Tanzania and 45km north of the Mozambique maritime border.[7]
  • In September 2012, it was announced that additional seismic and petrophysical analysis has increased the expected mean in-place resources for the Mzia discovery to 6 TCF.[8]
  • In February 2013, Ophir Energy and BG announced the successful results of their appraisal programme on the Mzia field and the commencement of their Block 1 flow-testing programme.[9]
  • In March 2013, the operating companies announced the successful completion of the Drill Stem test on the Jodari-1 well in Block 1. The test was the first deep-water, offshore production test in the Tanzania waters. The test validated the resource potential of the Jodari Field.[10]
  • In May 2013, BG and Ophir Energy announced the successful Mzia-2 Drill Stem Test. The test increased the estimated mean recoverable resources from the Mzia Field from 3.5 TCF to 4.5 TCF.[11]
  • In July 2013, the success of the Mkizi-1 well in Block 1 was announced. The well is located 1,301m deep in water between the Mzia and Jodari discoveries in Block 1. It is estimated that the recoverable resources from the discovery are 0.6 TCF.[12]
  • In November 2013, Ophir and BG announced the successful appraisal of the Mzia discovery in Block 1. The Mzia-3 appraisal well was drilled 6km north of the Mzia-1 discovery well. The well has confirmed reservoir quality in line with that of Mzia-1 and Mzia-2 wells. Provisional interpretation of the Mzia-3 results has increased the overall mean contingent recoverable resource for the Mzia discovery by 0.7 TCF to 5.3 TCF.[13]
  • In 2013, GAIL India and Pavillion Energy bid to acquire stakes in blocks 1, 3 and 4. In December, Pavillion Energy announced having entered an agreement with Ophir Energy to purchase 20% interest in Blocks 1, 3 and 4 from the latter for a sum of USD 1.288 billion.[14]
  • In June 2014, Ophir and BG announced the success results of the Taachui-1 and subsequent Taachui-1 ST1 well in Block 1 which has resulted in a new gas discovery. The Taachui-1 well is located near the western boundary of Block 1 and was drilled to a total depth of 4,215m. Estimates for the mean recoverable resource from the discovery are at 1.0 TCF.[15]
  • In April 2015, Shell announced that it had reached an agreement to acquire BG Group for $70 billion.[16] The sale was completed on 15 February 2016.[17] Shell thereby also took ownership over BG’s assets in Tanzania and became operator of Block 1. [18]
  • In December 2016, Ophir and Shell announced that they completed drilling of the Kitatange-1 well and encountered good quality reservoir but no hydrocarbons. The wells were drilled with Noble Corp.’s drillship Noble Globetrotter 2 which started operations off Tanzania at the end of October and drilled in waters up to 2300 meters deep.[19]
  • In April 2017 it was announced that Shell has been awarded an extension of its Block 1 license for a further 3 and a half years by the Government of Tanzania. The bridging license will allow Shell to complete pre-FEED and FEED phase ahead of final investment approval. [20]




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References

  1. Shell comes up dry offshore Tanzania”, “offshoreenergytoday”, retrieved 5 September 2018.
  2. Where we work”, “BG Group”, retrieved 05 December 2014.
  3. Tanzania Licensing Rounds”, “TPDC”, retrieved 02 December 2014.
  4. Farm-out agreement with BG International Tanzania”, “Ophir Energy”, retrieved 05 December 2014.
  5. Gas discovery Block 1 offshore Tanzania“, “Ophir Energy”, retrieved 05 December 2014.
  6. Result of Jodari-1 well in Block 1 offshore Tanzania”, “Ophir Energy”, retrieved 05 December 2014.
  7. Mzia-1 gas discovery Block 1 offshore Tanzania”, “Ophir Energy”, retrieved 05 December 2014.
  8. East-Africa operations Update”, “Ophir Energy”, retrieved 05 December 2014.
  9. Mzia-2 appraisal announcement”, “Ophir Energy”, retrieved 05 December 2014.
  10. Jodari-1 Results”, “Ophir Energy”, retrieved 05 December 2014.
  11. Mzia-2 Results”, “Ophir Energy”, retrieved 05 December 2014.
  12. Tanzania Block 4 successful Ngisi drilling upgrades resources in Block 4”, “Ophir Energy”, retrieved 05 December 2014.
  13. Successful Mzia-3 appraisal well”, “Ophir Energy”, retrieved 05 December 2014.
  14. Tanzania blocks Ophir Energy gas block”, “Economic Times”, retrieved 05 December 2014.
  15. Taachui Gas Discovery, “Ophir Energy”, retrieved 05 December 2014.
  16. "Royal Dutch Shell to Buy BG Group for Nearly $70 Billion", “The New York Times”, 27 August 2018.
  17. "Shell Annual Report 2016 Note 4 -Acquisition of BG Group Plc", “Shell”, 27 August 2018.
  18. Shell Tanzania, “Shell”, retrieved 05 September 2018.
  19. Shell comes up dry offshore Tanzania”, “offshoreenergytoday”, retrieved 5 September 2018.
  20. ”[www.oilnewskenya.com/shell-gets-42-month-extension-in-block-1-tanzania/ Shell Gets 42 month extension in Block 1, Tanzania]”, “OilNewsKenya”, retrieved 5 September 2018.