SOURCE: Zeus Development Corporation

Zeus Development Corporation

November 03, 2009 13:25 ET

Gas Increasingly Monetized -- Not Flared, Finds Zeus Development Survey

HOUSTON, TX--(Marketwire - November 3, 2009) - Energy research and consultancy, Zeus Development Corporation, has conducted a survey of some 2,700 oil-associated gas fields that concludes gas is increasingly being monetized in Africa and Latin America rather than left stranded or flared.

"Natural gas in these formerly deemed frontier, abandoned, or undeveloped areas is being developed as a result of the quality and size of the discoveries, recognition of the need for long-term low-carbon fuel, and growing local and regional demand for gas," said Zeus upstream analyst Chris Cothran. "We see very clearly that China, for example, is getting serious about finding and developing more gas reserves."

Several observations were drawn from the survey: the Atlantic basin increasingly has plays on both sides due to presalt oil discoveries high in gas content. On the eastern side of the Atlantic, Sub-Saharan Africa is receiving increased attention, as Eni and ExxonMobil enter Ghana after a number of promising oil discoveries with associated gas in the last two years.

GNPC and Oando are forming a joint venture to harness gas produced from the Jubilee oilfield. The government of Mozambique is seeking investment for an $85 million gas pipeline project. Maurel & Prom is farming into the prospective Rovuma Delta. Discoveries off Sierra Leone and new seismic shoots off Liberia and Guinea bring further attention to the underexplored waters off West and Northwest Africa.

On the western side of the Atlantic, recent gas finds may cause explorers to reexamine the potential of formerly explored areas after as much as 8 tcf of gas was discovered offshore Venezuela in Deltana Platform (Perla discovery). And, as Petrobras devises its strategy for monetizing associated gas produced from the Santos and Campos presalt oilfields, possible gas reserves there are rising into the tens of trillions of cubic feet (trillions of cubic meters). Demonstrations of new liquefaction ships next decade may herald the time when gas flaring all but ceases worldwide.

Zeus surveys gas developments worldwide on a monthly basis with the Zeus Gas Monetization Report, which covers gas-field development efforts in 7,500 blocks, 360 basins and 153 countries around the globe. The report is integrated with and online database of global gas reserve profiles. See for more details.

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