Equinor Taking Write-down On Tanzania Gas Project

- Feb 02, 2021-

STAVANGER, Norway – Equinor will write down the book value of its Tanzania LNG project (TLNG) by $982 million.

After signing a production-sharing agreement with the Tanzania Petroleum Development Corporation (TPDC) in 2007, the company, as operator of offshore block 2, made nine gas discoveries with estimated in-place gas volumes of 20 tcf.

ExxonMobil is the other partner.

Over the past few years the partners have been working on a commercial framework for TLNG, but the expected breakeven price remains well above Equinor’s portfolio average.

The company plans to continue its engagement with Tanzania’s government on a commercial, fiscal and legal framework that may provide a viable business case for TLNG in future.