Kiliwani North gas remains `stranded’

Commercialization of the Kiliwani North gas discovery off Tanzania is proceeding slowly, according to partner Key Petroleum.

Offshore staff

PERTH, Australia -- Commercialization of the Kiliwani North gas discovery off Tanzania is proceeding slowly, according to partner Key Petroleum. The Kiliwani North 1 well in the Nyuni block tested 40 MMcf/d in June 2008.

The Nyuin joint venture partners have been waiting for the Tanzanian government to approve Songas’ plan to expand gas processing facilities on nearby Songo Songo Island, and also for environmental approval for a proposed gas pipeline between the well and the island’s gas plant.

Joint venture operator Funguo Petroleum has held further commercialization discussions with other parties in Tanzania, but Key says progress has been slow.

Last July, the joint venture completed in-fill seismic over Songo Songo Island to improve its understanding of the Kiliwani North structure’s size. Processing of the data is nearly complete, and mapping of the discovery should start shortly.

In the West Songo Songo block, where Key has a 50% stake, the joint venture is reviewing leads that could be drilled. Much of the block’s existing seismic will be re-processed to improve definition of the Chocha, Afisis, and Miza leads. Key adds that the new data may also provide seismic attributes that could upgrade the Late Cretaceous play at Afisi and Miza.

02/01/2010

Other Kiliwani stories:

Kiliwani partners close to gas supply deal

Kiliwani partners assess gas export routes

More in Pipelines