Oil and Gas Projects, Africa
42% equity interest

The investment in Signet Petroleum is a central part of Polo’s strategy to increase its exposure to the oil and gas sector. The company has acquired and interpreted 3D seismic data over Mnazi Bay (Tanzania), which has confirmed the substantial up-dip extension of the BG/Ophir Chaza-1 discovery well and launched a process to examine strategic alternatives, which is being led by First Energy Capital LLP.

Tanzania

• During 2012, Signet acquired 110 square kilometres of high quality 3D seismic data over the offshore Mnazi Bay North Block, Tanzania. This new data, in addition to the 2D data acquired in 2011 provides a very strong indication of the up-dip extension of the BG/Ophir Chaza-1 discovery drilled by the Ophir on behalf of the BG/Ophir consortium on the Signet/BG/Ophir block boundary in 2011 as well as a number of additional prospective targets.
• The company is well positioned as an early development opportunity for the domestic energy market (unsatisfied domestic demand for natural gas is estimated at over 500 mmscf/d).
• The new Mtwara to Dar es Salaam Gas Pipeline project was inaugurated by the Government of Tanzania on 21 July 2012. The 532-kilometre pipeline will link the Mnazi Bay gas field to Tanzania’s largest city. Construction is underway and is expected to take 12-24 months to complete.
• Natural gas will be transported to large-scale electricity producers, other industrial users and major population centres in Tanzania.
• Plans for a new Mnazi Bay 300MW gas fired power plant were announced by Government of Tanzania on 13 October 2011.

Additional projects

• Signet acquired historical technical data on its Burundi licence, Block C, southern offshore Rusizi Basin. Evaluation is advancing.
• The joint venture with Surestream Petroleum Limited has purchased a 50 per cent interest in the seismic vessel, the ‘Tanganyika Explorer’, which will undertake 2D multi-client seismic services on Lake Tanganyika. The Surestream joint venture gives Signet a technical advantage across Lake Tanganyika.
  

Signet holds a portfolio of earlier-stage exploration projects in a number of other territories, including a 10 per cent stake in licence block SL 7A-10 in Sierra Leone and a 90 per cent working interest in Block 3 (2,863 square kilometres), offshore Benin.