Statoil Finds More Gas Offshore Tanzania

Statoil today announces that the Lavani-2 exploration and appraisal well has resulted in a new natural gas discovery offshore Tanzania. The Statoil-operated Lavani-2 well successfully appraised the Lavani-1 discovery reservoir in the Palaeogene. When deepening the well to the second target, a separate and significant gas bearing reservoir in the Cretaceous was encountered.

Statoil and its co-venturer ExxonMobil Exploration and Production Tanzania Limited will announce updated total volumes in Block 2 next year. An increase in the upside potential of the Block is expected following further evaluations of the well. The Lavani-2 discovery is the venture’s third discovery in 2012.

“These three discoveries continue to support our confidence in the Block 2 potential in Tanzania. The Lavani-2 well tested the deeper Saffron target and this new discovery looks promising,” says Nick Maden, senior vice president in Exploration International in Statoil.

The discovery is important for Statoil’s international growth and demonstrates how Statoil’s exploration strategy of focusing on high-impact opportunities is paying off. The Lavani-2 well also provides information that will be incorporated into models to help determine the optimal development concept for a possible natural gas development in Tanzania.

“The Lavani-2 is the third well in an ambitious drilling campaign of four wells within one year. The next well will be the appraisal of the Zafarani discovery. In parallel the venture is acquiring new 3D seismic to help us identify additional targets in Block 2,” adds Maden.

“We are pleased to hear about additional gas resources in Block 2 and eagerly awaiting for further information,” says Minister for Energy and Minerals, Hon. Prof.Sospeter Muhongo.

The Lavani-2 well was drilled to a total depth of 5270 metres in water depths of 2580 metres. The well was drilled by Ocean Rig Poseidon. The Lavani-2 well is located about 5 kilometres southeast of the Lavani-1 discovery well and 20 kilometres south of the Zafarani-1 well.

Statoil operates the licence on Block 2 on behalf of Tanzania Petroleum Development Corporation (TPDC) and has a 65% working interest, with ExxonMobil Exploration and Production Tanzania Limited holding the remaining 35%. Statoil has been in Tanzania since 2007, when it was awarded the licence for Block 2.

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Press Release, December 21, 2012