Kenya strikes oil for first time

President Mwai Kibaki says that more wells will be drilled to ascertain the commercial viability of the discovery


http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2012/3/26/1332782812655/kenya-strikes-oil-008.jpg Kenya has discovered oil in the north of the country and is now working to ascertain the commercial viability of the find. Photograph: Bill Ross/Corbis

Kenya (http://www.guardian.co.uk/world/kenya) announced its first oil (http://www.guardian.co.uk/business/oil) discovery on Monday, saying it was found in the northern part of the country where Africa (http://www.guardian.co.uk/world/africa)-focused British firm Tullow Oil Plc has been exploring for oil, and was now checking on the commercial viability of the find.
President Mwai Kibaki said in a statement read on live television that Tullow had encountered in excess of 20 metres of net oil pay, and would drill more wells in the area to ascertain the commercial viability of the find.
"This is the first time Kenya has made such a discovery and it is very good news," Kibaki said. "It is, however, the beginning of a long journey to make our country an oil producer, which typically takes in excess of three years." Shares in Tullow jumped 2.5% in London immediately after the announcement of its oil find in Kenya.
Kenya and its neighbours in east Africa as well as the Horn of the continent have become a hot spot for oil and gas exploration in recent years, spurred by new finds.
South Sudan (http://www.guardian.co.uk/world/south-sudan), which split from Sudan (http://www.guardian.co.uk/world/sudan) in July under a 2005 peace deal that ended decades of civil war, is an oil producer, while commercial oil deposits were found in Uganda (http://www.guardian.co.uk/world/uganda), and there are vast natural gas deposits in Tanzania and Mozambique (http://www.guardian.co.uk/world/mozambique).
At a joint news conference with Tullow executives, Kenya's energy minister Kiraitu Murungi displayed a glass bottle of the "light, waxy crude oil" found by the company.
"We will make sure that the oil in Kenya is a blessing for the people of Kenya and not a curse," Murungi said, in reference to other countries whose people remain mired in poverty despite having struck oil.
Analysts said although it was still too soon to tell the significance of Tullow's discovery, with the exact quantity or deposits as yet unknown, it was worth noting that Tullow had stated the find went beyond their expectations. "This is likely to attract interest from other explorers in the coming months, keen to take advantage of this early find," London-based Marc Mercer, Africa associate at the Eurasia Group, a political risk consultancy, said.
"If considerable reserves are found along the quantity discovered in Uganda, then this is somewhat of a game changer for Kenya and they are well placed to develop the industry for export given their geographic location."

oil is only a curse when you make it one.

oil is only a curse when you make it one.
Yup, that's why finding oil in Ethiopian isn't exciting me, at least not anything big.

Yup, that's why finding oil in Ethiopian isn't exciting me, at least not anything big.

Not necessarily even volatile region like Sudan has benefited from oil. One needs to figure out how best to use it.

Not necessarily even volatile region like Sudan has benefited from oil. One needs to figure out how best to use it.
Sudan? It's probably one of the worst examples you could had pulled out, considering the fact that almost all their oil is gone with South Sudan. Their economy is also heavily dependent on oil, it's now that they are starting to diversify. Even with that oil for all these years, their infrastructure isn't that impressive even compared to Ethiopia or other poorer countries.

I want to see much less corruption and much more political freedom before we hit the jackpot. But smaller finds could be used to fund infrastructure projects.

Kenya is certainly ready to hit it big, we aren't.

^^ yes Sudan. I have limited information on Sudan but I am assuming it is better than yours. You can correct me if I make factual error. Sudan didn't have oil for many years unlike you are inclined to believe. It has been exploring for a while but because of instability, not related with the oil, significant exploration cannot be made. Some sort of peace agreement with SPLA opened up the space and results started to show up between 1997-99 (I don't see that as all those years). Somehow the peace agreement is derailed and SPLA targeted the pipeline. A more sustainable peace agreement started to form beginning 2003. During the peace agreement, Sudan is able to build up itself quickly.
1. Merowe Dam costed 1.2 euro - capacity 1250 MW - 400 mill euro paid by Sudan in 2004 and by 2011 the probably have paid quite a lot so no debt pressure.
2. Sudan has attracted massive FDI over the years and this will help even when the oil is not there anymore. (just google Sudan FDI)

I might have overlooked things, but Sudan has made good choice. South Sudan is leaving the joint regardless of the oil story. If Sudan held on to South Sudan with or with oil, it would have been much worse today. They made a strategic choice of accepting a referendum down the line and in the meantime used the proceed from oil to build their country.
Now explain to me how Sudan is worse off because of oil.

^^ They used the oil in the South to develop Khartoum and other parts of the North. If you look at the infrastructure in the North compared to the South, it was like completely different countries. If they had developed all parts of Sudan equally and respected the South's diversity, they wouldn't been in this situation.

I'm not saying that Ethiopia would be "worse off", but it certainly won't use it's maximum capacity under this regime. Limited political freedom together with corruption is risky.

^^ yes Sudan. I have limited information on Sudan but I am assuming it is better than yours. You can correct me if I make factual error. Sudan didn't have oil for many years unlike you are inclined to believe. It has been exploring for a while but because of instability, not related with the oil, significant exploration cannot be made. Some sort of peace agreement with SPLA opened up the space and results started to show up between 1997-99 (I don't see that as all those years). Somehow the peace agreement is derailed and SPLA targeted the pipeline. A more sustainable peace agreement started to form beginning 2003. During the peace agreement, Sudan is able to build up itself quickly.
1. Merowe Dam costed 1.2 euro - capacity 1250 MW - 400 mill euro paid by Sudan in 2004 and by 2011 the probably have paid quite a lot so no debt pressure.
2. Sudan has attracted massive FDI over the years and this will help even when the oil is not there anymore. (just google Sudan FDI)

I might have overlooked things, but Sudan has made good choice. South Sudan is leaving the joint regardless of the oil story. If Sudan held on to South Sudan with or with oil, it would have been much worse today. They made a strategic choice of accepting a referendum down the line and in the meantime used the proceed from oil to build their country.
Now explain to me how Sudan is worse off because of oil.

Dude, all your arguments are based on assumptions. The only fact you state correctly is that Sudan started generating revenues from its oil in the mid to late 1990s. Everything else you're staying is baseless. Get your facts straight first and then we can discuss.........

Oil is not necessarily a curse but handled in a bad way it can bring massive inequalities.

Dude, all your arguments are based on assumptions. The only fact you state correctly is that Sudan started generating revenues from its oil in the mid to late 1990s. Everything else you're staying is baseless. Get your facts straight first and then we can discuss.........

Can you point out the assumptions esp. the assp. you did not like? The fact that Sudan's public investment has been increasing (as % of GDP) after its oil export took off in 1999 (not mid 1990s) is a fact. The fact that Sudan's FDI (as % of GDP) is increasing following its oil boom is another fact. You can use google public data, it is not that complicated. That fact that private investment (be it domestic or foreign) is the driver of growth is a stylized fact. You can call it an assumption if you like but it is an assumption supported by data time and time again.
P.S. በነገራችን ላይ ኢትቪ ሰርተሀል ...baseless blah blah ...we are debating here not campaigning

If you read your previous post, this was your opening sentences: " I have limited information on Sudan but I am assuming it is better than yours."
So you said it, not me. And yes we're debating here that's why I'm pointing out what you said, not baselessly blah blah blah...as you assumed once again.

If you read your previous post, this was your opening sentences: " I have limited information on Sudan but I am assuming it is better than yours."
So you said it, not me. And yes we're debating here that's why I'm pointing out what you said, not baselessly blah blah blah...as you assumed once again.

You need to work on your comprehension skills amigo. I will simplify it for you.
I Assumed
My information set > Yoni's information set
This is because I have noticed some errors in his information set. However, I haven't assumed anything about Sudan nor did I imply that anywhere. If I were as rude as you, I would have simply said I have better information than Yoni. But that is neither true nor modest as I don't know about Yoni's entire info on Sudan.
comprende, amigo?
adios
-ላንተ ስፓኒሽ ይሻልሃል ብዬ ነው

no señor, no quiero comprender todo lo que está diciendo

ይሄ ቡና ቤት እንዴት ነው ጃል ፈዛል እኔ እና ^^ ብቻ ነን እንዴ የምንነታረከው