(Ecofin Agency) - Ophir Energy on Thursday announced that its partner, Shell, is making preparations to commence exploration drilling offshore Tanzania, later this year.

According to Ophir, the drilling program worth $20 million is scheduled to commence in Q4 and will cover two wells on Blocks 1 and 4 and target more than 1 Tcf of gas.The well on Block 1 will target Kitatange, with an estimated mean recoverable volume of 1.1 Tcf while the well on Block 4 will target Bunju with an estimated 1.4 Tcf. The wells are expected to accomplish the remaining exploration necessities on the licences.

In the meantime, pre-front end engineering and design (FEED) is moving ahead on an onshore LNG plant, which would take in Blocks 1 and 4, as well as Block 2, held by Statoil and ExxonMobil.

“Shell sees this as an LNG project that ranks well in their portfolio. Shell is currently looking for ways to reduce the cost structure for the LNG project,” Bill Higgs, Ophir's COO, told OE Digital.

Shell became the operator of the blocks after taking over BG Group at the beginning of this year.

Anita Fatunji