Mnazi Bay natural gas wells drilling billed for early 2025

By Guardian Reporter , The Guardian

Published at 11:31 AM Oct 02 2024

Photo: Correspondent

Attendants to the meeting between PURA and M&P that took place on September 30, 2024, aimed at discussing the project for the drilling of three wells in the Mnazi Bay Block

A FRENCH exploration and drilling firm is expected to start drilling in three natural gas wells at the Mnazi Bay Block in Mtwara Region early next year.

The Petroleum Upstream Regulatory Authority (PURA) said in a statement yesterday that the drilling work involves an estimated budget of $80.2m (218bn/-), affirmed after discussions on Monday with Maurel et Prom Exploration Production (T) Ltd (M&P).

The block's operator expects its gearing to finalise plans for the significant initiative, with the meeting involving top officials of the two parties including Simon Nkenyeli, the PURA exploration and production manager, and Sylvain Pichelin, the M&P’ (T) general manager,.

M&P provided clarification on the proposed project budget, an important step before PURA authorised contractual expenditure, the regulator affirmed, noting that of the three wells, two (MB5 and MS2) are intended for starting production, and one (Kasa) is at an exploratory stage.

An environmental impact assessment for the project has been completed and compensation for affected people slated to start after the verification exercise is finalised, it said.

The discussions also focused on local service providers in the project as well as in carrying out the work, with PURA reminding M&P “to ensure compliance with the local content legal and regulatory requirements.”

M&P’s General Manager, Mr. Sylvain Pichelin (second from left) during a meeting between PURA and M&P that took place on September 30, 2024, at the PURA offices in Dar es Salaam.

PURA will be closely monitoring project implementation to ensure that local service providers are fully involved, it further noted.

The Mnazi Bay Block has five wells already producing natural gas at an average of 74.24m standard cubic feet per day, with the M&P operating firm holding 60 percent participating interest in production activities, while TPDC retains a 40 percent stake.

Drilling at the three wells will facilitate the availability of more geological data regarding the gas availability extent in the block, a further step in exploring natural gas for more than 50 years.

The first local natural gas discovery was made in 1974 on the Songo Songo Island (Lindi Region) followed by Mnazi Bay (Mtwara Region) in 1982, and eventually at the Kiliwani North fields, adjacent to Songo Songo.

Natural gas from Songo Songo was first commercialized in 2004 and from Mnazi Bay in 2006, propelling further exploration in onshore and offshore sites.

Since 2010, Tanzania has witnessed further natural gas discoveries with the latest estimated natural gas reserves (2016) pegged at 57trn cubic feet, it added.