Statoil’s latest gas discovery in Block 2, offshore Tanzania, has given a further boost to plans for a major subsea-to-beach LNG project in the newest East Africa play.

The discovery of an additional 28-60bcm at the Mdalasini-1 well, brings the total up to over 620bcm in Block 2. Statoil says that if the project is eventually sanctioned, development will be done subsea.

This will comprise a subsea production system, pipelines to an onshore LNG plant, LNG exports to international gas markets plus gas transmission to the domestic market.

A Statoil spokesman told SEN that there are still a number of issues that need to be sorted out with the Tanzanian authorities before a final investment decision can be made, perhaps next year.

The Tanzanian government has asked Statoil, ExxonMobil and partners in neighbouring blocks, including Ophir Energy and BG, to come up with joint plans for a two-train onshore LNG plant for the project.

The Mdalasini-1 discovery, which was made in Tertiary and Cretaceous sandstones, is located in 2,296m at the southernmost edge of the block.

Nick Maden, Statoil senior veep for exploration, Western Hemisphere, said, ‘Since the start of the programme in February 2012, we have drilled 13 wells and made eight discoveries, including Mdalasini-1. We still see prospectivity in the area, but after appraising the Tangawizi-1 high-impact discovery, which was made in March 2013, there will be a pause in the drilling to evaluate the next steps and to mature new prospects.’

Previously Statoil and co-venturer ExxonMobil have made seven discoveries in Block 2, including the five high-impact gas discoveries Zafarani-1, Lavani-1, Tangawizi-1, Mronge-1 and Piri-1, as well as the discoveries in Lavani-2 and Gilligiliani-1.

Statoil (65%) operates on Block 2 on behalf of Tanzania Petroleum Development Corp with ExxonMobil holding the balance.