London — PRESIDENT Jakaya Kikwete has said there are prospects for high revenues from the latest encouraging gas discoveries that have seen British Gas Group achieve 100 per cent success rate in Tanzania's virgin exploration basin so far.
He said on Thursday during a visit to the BG Group's global headquarters in Reading, outside London. He had talks with the Chief Executive Officer of BG Group, Sir Frank Chapman, where he was told that BG has so far achieved a 100 per cent success rate in this virgin Tanzania exploration basin and that it was extremely encouraging.
"The stage they have reached is so promising. Let us give them more time, they will get more. We are at a good stage which gives good prospects for high revenues, power for industries and domestic purposes among other things. It's a stimulant for development," said President Kikwete.
The Chief Executive Officer of BG Group, Sir Frank Chapman, said he was delighted to welcome President Kikwete to the BG Group's global headquarters during his visit to the UK.Sir Chapman said BG Group entered Tanzania some 24 months ago and has been operating for the last 12 months within which time they have made five consecutive discoveries.
"Naturally, achieving a 100 per cent success rate in this virgin Tanzania exploration basin is extremely encouraging," he said.
He said much work remains to be done to explore the further potential of the acreage and study development and export schemes and that they look forward to working with the government and its people as the country makes transition to a new major natural gas producer and exporter.
BG Group is a world leader in natural gas, active in more than 21 countries across five continents and has a broad portfolio of exploration and production, Liquedified Natural Gas and transmission and distribution business interests.
The Group's production volumes in 2011 were 234.1 million barrels of oil equivalent; natural gas accounted for approximately 70 per cent of that volume.
It ranks amongst the ten largest companies in the UK with a market capitalisation of some $80(about 125 trillion/-).It entered the country in 2010 acquiring interests in offshore blocks 1, 3 and 4.Blocks 3 and 4 cover approximately 20,850 square kilometres of the Mafia Deep Offshore Basin and northern portion of the Ruvuma basin and comprise areas where no previous exploration activity had been conducted.
Soon after its entry into Tanzania, BG along with its partner Ophir Energy mobilized a deep water drilling rig to commence a 3-well exploration drilling campaign.In October 2011,the Pweza -1 gas discovery was made, in April 2011, a third gas discovery was made at the Chjaza -1 well.
He said the second drilling work which commenced in January this year has been another success, with the first well at Jodari-1 having completed in March and is also a gas discovery. The second exploration well Mzia has also been a further gas discovery, he said.