Monday, November 28, 2011

East Coast Africa as a Natural Gas Play (Reuters)

I spent some time in east Africa (Tanzania) in 1992-96 on several projects, one of which was a natural gas play. The Songo Songo project was a very memorable experience and rates high among my most enjoyable travels.  In reality - it was a personal tour of Africa from a helicopter and included an offshore processing facility, 24km subsea pipeline, and 200km land pipeline to Dar es Salaam.

Some recent discoveries could prove to be monstrous to several global players in the gas market - including BG Group, Statoil, and Exxon.

Mon Nov 28, 2011 9:55am EST

* Reserves could be three times last estimate

* Cove shares rise, could attract bids

* Anadarko shares up 6 pct

LONDON, Nov 28 (Reuters) - U.S. oil company Anadarko Petroleum Corp said its major gas finds offshore Mozambique were around twice as large as it earlier thought, adding support to hopes that East Africa will become another major gas production centre.

Anadarko said on Monday that the results of its Barquentine-3 appraisal well showed its fields had recoverable reserves of 15 to over 30 trillion cubic feet (Tcf) of natural gas -- compared to total UK gas reserves of 9 Tcf, according to the BP Statistical Review of World Energy.

"This could be one of the most important natural gas fields discovered in the last 10 years," said Anadarko Chairman Jim Hackett.

Previously, Anadarko said the fields, in which Japan's Mitsui & Co Ltd and Dublin-based Cove Energy Plc have stakes, held "at least 10 Tcf" of gas.

Cove shares traded up 10 percent at 87.25 pence, outperforming a 1.9 percent rise in the STOXX Europe 600 Oil and Gas index . Shares of Andarko climbed 6 percent in early New York Stock Exchange Trading to $76.50.

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