Lack of infrastructure delays Statoil gas production in Tanzania

Statoil has had a presence in Tanzania since 2007 with the goal of exploring natural gas. Statoil has had a presence in Tanzania since 2007 with the goal of exploring natural gas. However, the Norwegian international energy company recently said it may be as long as 10 years before it can begin commercial production of gas in the African nation.

A lack of infrastructure and facilities needed for the production is delaying production, the company said.

Statoil Tanzania AS has a 65 percent working interest in Block 2 off the Tanzania coast. The approximately 2,123-square-mile area sits in water depths of between 4,921 and 9,842 feet. Genevieve Kasanga, Statoil's head of communications, said the area has proven recoverable gas resources of 15 trillion to17 trillion cubic feet in four wells.

"It will take us between seven and ten years to start commercial production," Kasanga said.

Statoil plans to build a $14 billion liquefied natural gas terminal in east Africa that will service Asian markets, All Africa reported.

It is estimated that more gas is located off the coast of Tanzania, Kenya and Mozambique than Nigeria, the current largest energy producer in Africa, the source said.

PennEnergy's research area offers more information on offshore drilling operations.

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