BG Group Plc (BG/), the U.K.’s third- largest natural gas producer, said it plans to drill more wells off Tanzania to find enough reserves to underpin development of a two-unit land-based plant to liquefy the fuel.
The company has already discovered more than 500 million barrels of oil equivalent in three wells off the East African nation, said Chief Executive Officer Frank Chapman. It has conducted seismic studies in the area and plans to start a new drilling campaign later in the year.
“We’ve got our sleeves rolled up, the guys are working up a bit of a sweat and we’ll see where it goes,” Chapman told analysts on a conference call.
Reading, England-based BG is exploring for East African oil and gas to supply clients in Asia. In March, it secured interests in two Kenyan blocks, the company said today in a statement.
Separately, Chapman today said BG may delay one of two exploration wells in Egypt into next year because of unrest in the country.
The company’s second exploration well in China has failed, he said.
“We are currently analyzing the implications of that failure and we are planning to drill yet another well in China later this year,” he said.
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