Statoil and its co-venture partner ExxonMobil has made a gas discovery in block 2, located offshore Tanzania.
During the drilling of Tangawizi-1 well, the companies discovered four to six trillion cubic feet (TCF) of natural gas in the sandstone of tertiary age.
It is the third high impact discovery made by the companies in the block 2. The gas was found 10km from the previous two discoveries in the block, Zafarani and Lavani.
Tangawizi-1 well located in water depth of 2,300m was spud using the Ocean Rig Poseidon drilling rig.
Statoil Exploration executive vice president Tim Dodson said the discoveries in the block 2 are a result of an ambitious drilling campaign.
"We have so far completed five wells within 15 months and will continue with further wells later this year," Dodson added.
"Recoverable gas volumes in the range of 10-13 TCF brings further robustness to a future decision on a potential LNG project."
Statoil with 65% working interest operates the licence on Block 2, on behalf of Tanzania Petroleum Development, along with ExxonMobil Exploration and Production Tanzania holding the remaining 35% interest.