this thread is only dedicated oil exploration project in kenya

The Government has stepped up oil exploration though no deposits have yet been discovered.


The National Oil Corporation MD Mwendia Nyaga (centre), the Standard Group team led by MD Paul Wanyaga (second right) and Assistant Commercial Lawrence Njiru (right) when they paid a courtesy call on the Corporation’s head offices in Nairobi. Partly hidden is Jane Njoroge (second left) and Corporate Affairs Manager Chris Karanja. Photo: Jonah Onyango/Standard

National Oil Corporation of Kenya (NOCK) Managing Director Mwendia Nyaga, however, said chances of finding oil were high and more explorers had shown interest.

The State-owned corporation that distributes oil products also co-ordinates exploration.

"There are high prospects as we have received positive indicators from the wells drilled," said Mr Nyaga, when he received Standard Group Managing Director Paul Wanyagah in his office on Thursday.

"These indicators have attracted more explorers and in case of discovery, the process will be accelerated."

So far, 31 wells have been drilled and more than Sh1 billion spent in collecting data that would help in further exploration.

Exploration is concentrated in four regions that include the Coast, the basin between Lamu and Lake Turkana, Rift Valley block that extend from Kerio Valley to Magadi and the Mandera basin that covers northern Kenya.

Nyaga said the basins have been sub-dived into 36 exploration blocks where more than ten multinational companies have been licenced to explore seven.

Wanyagah praised the Government for creating the organisation and charging it with the responsibility of co-ordinating exploration. He said with the high oil prices in the global market, discovery of commercial oil deposits would be a boost to the economy.

"We urge you to keep updating Kenyans on exploration efforts especially now that oil prices have been escalating," said Wanyagah.

On oil prices, Nyaga said he shared in frustrations expressed by motorists who have not benefited from the prevailing low crude oil prices in the global market.
desert burner is online now Report Post Edit/Delete Message

After a threat from prevailing global economic recession, oil exploration efforts are looking up once again.
Africa Oil Corporation— a Canadian oil firm— has re-jigged the efforts through a new partnership to explore black gold in the arid northern Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.eastandard.net/mag/InsidePage.php?id=1144017012&cid=457&#) region.
Africa Oil Corporation signed the agreement with the Dubai-based oil exploration firm, Black Marlin Energy Ltd (BMEL) to seek for oil and gas resources in Anza basin, thought to hold part of the oil wealth extending to South Sudan.
http://www.eastandard.net/images/tuesday/fj160609_08.jpgAn engineer at an oil exploration site. The renewed oil search is a major boost to Kenya’s oil exploration initiative. [PHOTO: FILE]
They would prospect oil in Block 10A in the Anza Basin of northern Kenya.
The agreement also extends to exploration of potential oil fields in Ethiopia and lead towards drilling if commercial quantities of oil are found in northern Kenya and in Ethiopia’s Ogaden Basin in southern Ethiopia. In Kenya, Africa Oil will transfer a 20 per cent license interest to Black Marlin Energy subsidiary, East African Exploration Ltd (EAXL) in the Production Sharing Contract.
Black Marlin Energy Chief Executive Jeff Hume announced last week, the firm plans to invest Sh770 million over the next three years in the exercise. He said Africa Oil brings strong technical experience to the Joint Venture while Black Marlin’s business model offers high quality seismic services.
gas potential
"I am very pleased to be able to announce this strategic and exciting transaction and look forward to working very closely with Africa Oil Corp," he said last week.
Hume believes there is good oil and gas potential in the Anza Graben in Kenya. "We believe that oil and gas will be discovered somewhere in Kenya in the next two to three years," he said.
Hume said in the prospective Block 10A Production Sharing Contract, Africa Oil has executed a seismic contract with BMEL’s Upstream Petroleum Services Ltd, a geosciences services unit.
EAX is an operator in Block 1 in Kenya with a 50 per cent interest and is 40 per cent partner in Block L17/L18 near Mombasa.
Kenya represents EAX and Black Marlin’s largest exploration commitment worldwide. Africa Oil holds a 100 per cent interest in Block 10A and has farmed into Block 9 with a 30 per cent interest. Africa Oil Corp farm-in transaction with BMEL is however subject to government approval. The oil exploration agreement is a boost to the country’s oil exploration initiative as it comes against a continued global economic downturnhttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.eastandard.net/mag/InsidePage.php?id=1144017012&cid=457&#) that has restricted the operations of many oil-prospecting companies.
facilitate growth
Opening the fourth East African Petroleum Conference in Mombasa recently, Energy Minister Kiraitu Murungi said the economic crisis was a serious threat to the country's pursuit for oil deposits as most companies involved in the search were caught up in the situation.
In his Budget speech Finance Minister Uhuru Kenyatta said the Government has introduced new measures to reduce the cost and encourage private sector players to conduct oil exploration activities.
He said plans are in place to grant import duty exemption on equipment and inputs excluding motor vehicles imported by a licensed company for direct and exclusive use in oil, gas or geothermal exploration and development.
Uhuru said these would help fast-track ongoing exploration initiatives and complement Government’s efforts towards addressing the aspirations of the people and facilitate growth of the economy.
The measures in the 2009 Budget anchored on the Theme: "Overcoming Today’s Challenges for a Better Kenya Tomorrow" comes when local oil exploration efforts appears to be looking up again after encountering serious threat from the global economic recession.
Kiraitu said most companies engaged in oil exploration in the country had either put on hold or scaled down operations due to the capital intensity of the exploration process.
"I wish to confirm that Kenya 's exploration efforts have been seriously affected by the economic crisis," he said.

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Oil drillers Raytec and Lion in merger

http://www.theeastafrican.co.ke/image/view/-/653820/highRes/99649/-/maxw/600/-/i6k9nz/-/india-crude-oil.jpg Oil workers at a storage facility for crude oil at Mangala oil field at Barmer in the desert Indian state of Rajasthan. Drilling in CNOOC’s Block No. 9 in Kenya is expected to start soon. Picture: Reuters

Posted Monday, September 7 2009 at 00:00

Publicly-listed Cnadian oil exploration company Raytec Metals Corporation has announced that it has entered into negotiations to merge with Lion Petroleum Inc — the entity that has been allocated the rights by the Kenya government to prospect oil in two blocks in Mandera area of North Eastern Province.

A recent entrant into the oil exploration field in Kenya, Lion Petroleum has production sharing contracts with the government of Kenya on blocks 1 and 2B.

The news of the intended merger is the latest in the fast-changing oil exploration landcape in Kenya in response to an increasingly liberalised licensing exploration regime.

Until recently, Kenyan authorities were reluctant to approve mergers and farm-ins between oil exploration companies.

But it would apear that authorities now realise that as along as the country constinues to be regarded as a high-risk exploration frontier, the licensing regime must allow mergers and acquisitions if only to sustain the continued flow of foreign venture capital into the country’s oil exploration sector.

Block 1 — which is the subject of the new merger deal between Raytec Metals and Lion Petroleum — covers an area of approximately 31,781 square kilometres and is situated west of Mandera Town, extending into Somalia and Ethiopia.

The merger will also affect ownership of Block 2B which covers an area of approximately 7,807 square kilometres and borders block 9 where Chinese exploration company CNOOC will shortly commence the drilling of Kenya’s first on-shore oil wells in close to 20 years.

Last week, the chief executive of Lion Petroleum, Mike Devji, said the two companies had decided to unite to create a bigger and more dynamic oil exploration company.

Last year, Lion entered into a farm-in agreement with East African Exploration Ltd, a subsidiary of Black Marlin Energy Ltd of Dubai, that has rights over Bloc 1.

Under the deal, Black Merlin will do seismic work on some parts of block 1 in exchange for shareholding.

In a statement last week, Raytec’s president, Brian Thurston, described the relationship with Lion Petroleum as strategic, adding that the company was focused on the company becoming a significant player in the developing oil and gas industry in East and Central Africa.

Only recently, Raytec announced a farm-in agreement with Africa Oil Corp, a member of the Lundin Group.
According to the agreement, Africa Oil will transfer to Raytec a 10 per cent interest in the Block 9 , a 25 per cent license interest in the Block 10A and a 20 per cent interest in Block 10BB.

In July, Africa Oil Corp acquired Turkana Energy Inc which had a production sharing contract on Block 10BB.

The block is approximately 13,000 square kilometres in North Rift.

The block occupies within the tertiary rift trend of East Africa, which has recently yielded major oil discoveries by operators such as Heritage Oil Corp and Tullow Oil plc, both active in the Lake Albert region of Uganda.

In the sate of Puntland Somalia, Africa Oil will transfer a 15 per cent licence interest to Raytec in the Nogal and Dharoor Petroleum Production Sharing Agreements.

In May, 2009, Dubai based Black Marlin Energy Limited announced a farm-in agreement between its subsidiary East African Exploration Limited and Africa Oil Corporation on where Africa Oil will transfer a 20 percent license interest in the Block 10A Production Sharing Contract, located in the Anza Basin of northern Kenya.

In June, Lundin Kenya BV, a wholly owned subsidiary of Lundin Petroleum AB, anncouned that it had executed an agreement with CNOOC Africa to acquire a 30 percent particpating interest in Block 9.

In December, Taiwan’s government-owned refiner CPC Corp and China’s CNOOC signed a letter of intent to expand exploration and production in which it agreed to sell to CPC a 30 per cent stake in its No. 9 exploration block in Kenya.

Drilling in CNOOC’s Block No. 9 in Kenya will take place in August or September, CPC president Chu Shao-hua said.

Years after Kenya launched an off-shore oil exploration bid, multinational companies are still erecting rigs deep in the sea with the hope of striking the black diamond.

The latest entrant into the turbulent waters is Origin Energy (K) Limited, a subsidiary of Original Energy Limited, Australia.

The company is currently assembling a rig to explore Bloc L8 for oil and gas, 100 nautical miles east of Malindi.

The chief geologist in the Ministry of Energy, Mr John Omenge, told journalists at Eden Roc Hotel in Malindi on Thursday: “When you look at the zeal and enthusiasm displayed by these companies, you know it is not for nothing.”

Mr Omenge said there was a lot of hope that the companies would strike oil soon, and urged the relevant government departments to cooperate with the company so that it realised its objectives.

Huge reserves

He said Tanzania, which lies within the same Indian Ocean Basin as Kenya, had discovered huge reserves of gas, adding that it was almost automatic that the Kenyan Coast had similar reserves.

The Origin Energy (K) Ltd Company operations coordinator Neil Taylor said the survey and exploration programme could begin in November or December.

“It’s a US$ 10 million-dollar programme (about Sh760 million) that will take six weeks to complete,” said Mr Taylor, adding that a special ship for the job was expected in the country in the next few days.

Origin Energy has completed a similar survey in Bloc 9. The blocs have separate licences for exploration from the government and each covers about 700 square nautical miles. The company will use the 3D Sysmic Survey method for the study.

Environmental issues

Mr Taylor said environmental issues had been taken care of after the company held a meeting with environmental stakeholders earlier in the week.
“They survey will be carried out very carefully,” he said. “The process is designed in such a way that it does not interfere with the ecosystem.”

Mr Taylor raised concern over insecurity at the sea, but Malindi district commissioner Arthur Mugira assured the exploration company that tight security would be in place.


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I know there is so much Oil off Kenya and TZ coasts. they are just not serious about finding it that why nothing has come out yet.

I know there is so much Oil off Kenya and TZ coasts. they are just not serious about finding it that why nothing has come out yet.

I wouldn't be too overjoyed if they did find oil...at least not now.

I wouldn't be too overjoyed if they did find oil...at least not now.

im with you

I wouldn't be too overjoyed if they did find oil...at least not now.

Well, i'm not overjoyed, but i'm happy.

So it's ok for Kenya and TZ to continue being dependent on foreigners supplying you Energy?

But what's the point of sending money to the Middle East countries instead of own?


It will be a great thing for your economies. Kenyans and TZns will spend less money on oil for their cars. Which means they will have more purchasing powers.

It will be great for Business even more. Meaning they will spend less money on transposrtaion coast. meaning the agroculture industry will spean less money as well.


it's a great thing to produce your own oil.

Butembo,
Those of us from Kenya who are hoping that we never discover oil do so because of the fear of turning into what other mineral-rich countries have. Your own country is a classic example, but so are Nigeria, Angola, Equitorial Guinnea and the rest. The average African never seems to benefit from these rich because of corruption and resource looting that is encouraged by foreign companies.

Well, i'm not overjoyed, but i'm happy.

So it's ok for Kenya and TZ to continue being dependent on foreigners supplying you Energy?

But what's the point of sending money to the Middle East countries instead of own?


It will be a great thing for your economies. Kenyans and TZns will spend less money on oil for their cars. Which means they will have more purchasing powers.

It will be great for Business even more. Meaning they will spend less money on transposrtaion coast. meaning the agroculture industry will spean less money as well.


it's a great thing to produce your own oil.

Butembo,
Those of us from Kenya who are hoping that we never discover oil do so because of the fear of turning into what other mineral-rich countries have. Your own country is a classic example, but so are Nigeria, Angola, Equitorial Guinnea and the rest. The average African never seems to benefit from these rich because of corruption and resource looting that is encouraged by foreign companies.

I understand your fear.

Butembo,
Those of us from Kenya who are hoping that we never discover oil do so because of the fear of turning into what other mineral-rich countries have. Your own country is a classic example, but so are Nigeria, Angola, Equitorial Guinnea and the rest. The average African never seems to benefit from these rich because of corruption and resource looting that is encouraged by foreign companies.

^^i understand the fears but it will be useless to shun wealth for the sake of fearing the unforeseen risk.:lol: what is your take about the new minerals discovered if its true. see the from the links below

http://www.businessdailyafrica.com/Company%20Industry/-/539550/661038/-/item/1/-/mco6tp/-/index.html

http://www.businessdailyafrica.com/Company%20Industry/-/539550/651542/-/item/3/-/whx22d/-/index.html

^^this maybe could join us the league of mining nations:)

^^i understand the fears but it will be useless to shun wealth for the sake of fearing the unforeseen risk.:lol: what is your take about the new minerals discovered if its true. see the from the links below

http://www.businessdailyafrica.com/Company%20Industry/-/539550/661038/-/item/1/-/mco6tp/-/index.html

http://www.businessdailyafrica.com/Company%20Industry/-/539550/651542/-/item/3/-/whx22d/-/index.html

^^this maybe could join us the league of mining nations:)

We are not shunning wealth. I think its a better idea to first build up other sectors like agriculture, tourism, service and manufacturing industries before we start mining. Once oil money enters the equation at this point in time, many other sectors will take a back seat and we may loose the little gains that we have made.

^^ Kenya should learn from the mineral and Oil Giants DRC and Nigeria . Our mistakes should be your reference to how differently you can behave.

http://www.nation.co.ke/image/view/-/671430/highRes/107159/-/maxw/600/-/10aj6f2z/-/oil-rig.jpg An oil rig near the shores of Lake Albert in western Uganda. Unlike Uganda which has discovered oil, Kenya’s search for the resource will intensify with the beginning of drilling in the next two weeks. Photo/FILE
By MWANIKI WAHOMEPosted Monday, October 12 2009 at 17:32

Kenya’s search for oil will intensify with the drilling of oil at Boghal near Isiolo in the next two weeks.

Energy minister Kiraitu Murungi said the government had signed 18 oil production sharing contracts in the last 18 months noting that they were at various stages of exploration.

Speaking during the opening of the second South-South meeting on gas and oil management at Windsor Golf and Country Club in Nairobi, the minister said exploration had been stepped up in recent years. He said there were high hopes that the country could strike oil soon.

“For many years, Kenya has been part of the neglected East African exploration frontier. However, in the last five years, we have intensified the search for oil and gas in all our sedimentary basins,” said Mr Murungi.

He said China National Offshore Oil Corporation, which will undertake the drilling, was mobilising the equipment for sinking the well.

The minister said the well would be five kilometres deep and is estimated to cost the company $26 million (Sh2 billion).

This is the second major attempt at finding oil in recent years after an Australian company, Woodside Energy sank Sh5 billion into the three-kilometre deep well off the Lamu coast that bore no fruit.

“This will be the deepest well ever drilled in Kenya. With the discoveries in Sudan, Uganda and Tanzania, we believe Kenya is now standing at the door. It is only a matter of time,” said Mr Murungi.

He said there was need to sharpen negotiation skills to manage the anticipated oil revenue to benefit the people, noting that the country would learn from the ongoing conference.

Mr Murungi, however, warned that increased agitation by non-governmental organisations could slow down efforts at exploiting the country’s oil potential.

He said some associated oil exploration with dictatorship, imperialism, exploitation, neglect of agriculture, marginalisation and civil strife on the continent.

The minister said Kenya would strive to benefit the communities residing where oil will be discovered to alleviate poverty.
Vice-President Kalonzo Musyoka, who represented President Kibaki at the opening ceremony, said it was projected that oil and gas would account for two thirds of global energy consumption by 2020.

Out of this, 80 per cent in oil demand will be in developing countries, which will account for 46 per cent of the world oil consumption by 2025.

The conference ends on Thursday.


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http://www.theeastafrican.co.ke/image/view/-/673372/highRes/108137/-/maxw/600/-/43use4/-/home+pix.jpg China National Offshore Oil Corporation’s Xie Wensheng (right), former Chinese envoy Zheng Ming and Education Minister Sam Ongeri at Isiolo Stadium recently. The firm supported various community projects. Photo/FILE
By CATHERINE RIUNGU (email the author (javascript:void(0);))



Posted Monday, October 19 2009 at 00:00

Kenya is smelling petrodollars. The EastAfrican can authoritatively report that in two weeks, the country is expecting to join the league of oil producers on the continent.




Energy Minister Kiraitu Murungi was bubbling with optimism when he told this newspaper on Thursday, “In a matter of days, we could be celebrating. God willing, I shall be announcing a historical discovery at the end of the month.”

Christmas will indeed come early should the drilling of a five-kilometre deep well in Isiolo by a Chinese firm, set to begin next week on October 28, strike oil.

And this time around, unlike as with past attempts that ended in disappointment after sinking billions into empty wells, Mr Murungi insisted, “We have done our homework and all indications are that Kenya will join Uganda in celebrating the status of a new oil producer.

“We can’t tell the size of the deposits we have yet, and there is a remote possibility that they may not be sufficient to qualify for commercial drilling, but that too will be known at the end of the month,” he said.

He added that he was convinced the seismic trials undertaken over the past two years are not lying.

Kenya’s optimism is informed by the geographical location of the prospective deposits — “not too far” from oil-rich Southern Sudan, whose deposits, according to the Ministry of Energy, extend into the neighbouring areas of Kenya, and also feed Uganda’s newly discovered deposits, which are found even under Lake Victoria.

The China National Offshore Oil Corporation will start drilling for oil at Block 9, Bogal 1-1, near Isiolo in northern Kenya next week.

The company is expected to spend up to $20 million to drill the Bogal 1-1 well.

Over the past three years, the company has invested about $15 million to gather data and analyse it.

“The Anza basin well will be the deepest ever drilled in Kenya,” Mr Murungi said.

The company is also licensed to explore oil deposits in the Lamu basin.
To cement Kenya’s new status, the country is moving to join hands with international organisations to put in place prudent management systems for its envisaged oil wealth.




It is among the first supporters of the formation of a South-South Energy Fund that was proposed in a meeting held in Nairobi last Monday.

The fund’s mandate will be to train high-level energy experts such as reservoir engineers, petroleum economists, geoscientists and petroleum lawyers.

It will be managed by a secretariat based at the United Nations Development Fund in the country’s capital.

The personnel to be trained will be placed in selected universities around the world.

“(We) resolved to set up a South-South Energy Fund with a secretariat managed by UNDP in Nairobi,” Mr Murungi said, adding that Kenya is vying for the position of secretary general of the fund.

Kenya and Liberia have each pledged to contribute $100,000 as seed capital to fund the secretariat’s establishment. The UNDP has pledged $1 million.

Addressing the Second South-South High-Level Meeting on Oil and Gas Management at the United Nations headquarters in Nairobi, Mr Murungi said: “We in Kenya would like to manage our oil and gas resources in a manner that promises maximum benefit to our people, and to modernise our physical and social infrastructure.”

He invited petroleum exploration companies to apply for the remaining 14 blocks.

“We believe there is plenty of oil and gas in Kenya and we are confident that we shall make commercial discoveries.”

The minister said: “With discoveries in Sudan, Uganda and Tanzania, we believe that Kenya is now on the threshold, too. It is only a matter of time.”

“Africa’s economic salvation lies in its vast oil and gas reserves. As is evident in the Middle East, where oil and gas have transformed barren desert economies, well-managed oil and gas resources can be principal agents of socio-economic transformation in Africa. Accelerated development of Africa’s upstream industry is our quickest route out of poverty,” Mr Murungi said.
Out of the 30 investigative wells drilled in Kenya, 19 have shown traces of hydrocarbons, though none are in commercial production.




The country has signed 17 production-sharing agreements over the past 18 months, and there are 14 blocks available for oil and gas exploration.

In another planned investment in the industry, Origin Energy Ltd, an Australian company, aims to start gathering data for an exploratory study in the Indian Ocean near Malindi.

Mr Murungi struck a note of caution as well, saying: “There are those who see oil as evil. Oil extraction in Africa has been associated with dictatorship, tyranny, imperialism, exploitation, neglect of agriculture, corruption and abuse of human rights... Hence the question: ‘Is oil a blessing or a curse in Africa?’”

Meanwhile, Mr Murungi has been listed to present a keynote address at the 16th Africa Annual Oil Week to be held from November 4-6 in Cape Town, South Africa.



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Kenya has inched closer to joining the league of “big oil” African countries as exploration reports indicate existence of oil and natural gas reserves in the Upper eastern region and Coastal strip.




Last week, Kenya’ Energy Minister Kiraitu Murungi expressed optimism that increased oil and gas exploration activities in the country indicate prospects of striking the black gold.

According to Mr Murungi, Kenya’s search for oil has been stepped up in recent years, with indications that oil could be struck soon.

He said China National Offshore Oil Corporation (CNOOC), which will undertake the drilling in Upper Eastern province town of Isiolo, was mobilising the manpower and equipment for sinking the well. The drilling commences this month.

It is estimated that Kenya’s Coastal region has the potential of producing around 100 million barrels of crude oil and 600 billion cubic feet of natural gas.

The well to be drilled by the Chinese could produce an estimated 1.7 billion barrels of oil.

This, it is said, could turn around the economy of the country, which currently uses an estimated 80,000 barrels a day.

Kenya’s Coastal region has the potential of producing around 100 million barrels of crude oil and 600 billion cubic feet of natural gas annually.

The well in Isiolo is expected to be five kilometres deep and is estimated to cost the company $26 million.

This is the second major attempt at finding oil in recent years after an Australian company, Woodside Energy sank a Ksh5 billion into the three-kilometre deep well off the Lamu coast that bore no fruit.

“This will be the deepest well ever drilled in Kenya. With the discoveries in Sudan, Uganda and Tanzania, we believe it is just a matter of time before Kenya succeeds too. It is only a matter of time,” said Mr Murungi.

The minister was addressing a gas and oil management conference in Nairobi last week.
He said that the government has signed Production Sharing Contracts with SOHI Gas Lamu and SOHI Gas Dodori and hopes to strike natural gas following similar discoveries off the coast of Tanzania recently.




“There are a number of companies currently negotiating with the Kenya government for open acreage both onshore and offshore,” Mr Murungi said.

Geologists are optimistic that huge deposits could be struck in the area arguing that Kenya failed to strike oil and gas in earlier attempts due to low exploration activities in the past.

The country has so far drilled 40 wells in the 400,000 sq kms belt of exploration basins instead of 400.

Australia-based Gippsland Offshore Petroleum and its partner Pancontinental Oil & Gas say they have completed a geophysical survey of a 6300 kilometres of the Lamu basin by air and gathered enough data suggesting the existence of oil and gas reserves.

“For many years, Kenya has been part of the neglected East African exploration frontier. However we have over the last five years intensified the search for oil and gas in all our sedimentary basins,” said Mr Murungi.

The oil find in Kenya could herald a regional oil boom, following similar discoveries in Uganda and Tanzania.

The discovery in Uganda in 2006 sparked massive interest in Kenya’s oil search with 14 companies showing interest to undertake exploration in a span of less than two years.

Kenya has so far attracted 11 international exploration companies, National Oil Corporation of Kenya chief executive Mwendia Nyaga said recently.

Mr Murungi expressed optimism that natural gas reserves could be found in Lamu area even though earlier searches by Woodside Energy of Australia were unsuccessful.

The Australian exploration giant drilled Pambo well at an estimated Ksh7 billion in the deep sea, but hit fresh water instead of oil.

Mr Murungi said the government had signed 18 oil production sharing contracts in the last 18 months noting that they were at various stages of exploration.
Discoveries of oil in Uganda and gas in Tanzania and Rwanda has propelled the search in Kenya, where oil and gas exploration companies have blown up billions of shillings in search of reserves.




Uganda has struck substantial reserves of oil, while Tanzania has discovered four gas fields so far.

Australian oil exploration company, Hardman Resources discovered oil in Uganda in October 2006 where commercial production is expected to commence in two years with initial estimates of 6,000 to 10,000 barrels a day.

Uganda has already commenced the development of a small refinery, commonly known as a topping plant, which would have a processing capacity of 4,000 barrels a day.

This translates into 156,000 tonnes of fuel oil and 32,000 tonnes of white products (like diesel) a year.

The three fields in western Uganda, where the oil has been discovered, have reserves of between 100 million and 300 million barrels, with 30 million barrels ready for extraction at just more than 12,000 barrels a day.

However, even as oil search gathers full steam, there are fears that cash strapped National Oil Corporation of Kenya (Nock) risks locking the country into agreements that could prove costly in the long term.

The fears are hinged on the premise that lack of cash renders NOCK unable to carry out independent oil search and has to enter into agreements with multinationals on how to share revenues from oil finds.

This is seen as risky in the event that searches are found to have potential for oil and gas on commercial scale.

Nock has adopted a development model used by governments in most countries.

The agreements, known as production sharing agreements (PSAs) are sealed by production sharing contracts (PSCs).

And are largely political in nature; technically, they keep legal ownership of oil reserves in the hands of the State, but in reality, they give oil companies full control over the operations and management of established oil wells.

Any disagreements can only be resolved by international arbitration, guided purely by commercial rather than national interests or laws.




In effect, therefore, Kenya risks handing over any future oil wealth to the complete control of foreign companies.

Last year, the Government signed PSCs with international oil companies for 19 out of the country’s 38 blocks.

The companies that have signed PSCs for oil exploration so far are Origin Energy, Gippsland, Camec, Lundin Kenya Bv, Vangold, Lion Petroleum and Turkana Drilling Consortium.

Others are EAX, SOHI Gas Lamu, SOHI Gas Dodori, Platform Resources and China National Offshore Oil Corporation (CNOOC).

However, Kenya is said to have the longest history of oil and gas search in the region spanning 60 years, but initial indications for Kenya having oil and natural gas potential were made in a 1993 world geological survey conducted by the United States Department of interior.

There are 11 international oil companies carrying out petroleum exploration activities in the country’s 19 out of 38 acreage blocks.

Thirty one exploration wells have been sunk, some of which have shown oil and gas traces, but no discovery has been made so far of significant deposits.

Recently, Africa has emerged as a leading oil exploration frontier with prospecting companies repositioning themselves as the global economy recovers from financial crisis.

In the past the oil and gas exploration in Africa was dominated by European and American firms but the trend is changing with Chinese, Indian and other new entrants competing for a piece of the pie. Petronas of Malaysia, China National Offshore Oil Corporation and China National Petroleum Corporation are among the companies that have increased their operations on the continent.

Oil experts estimate that up to $300billion has so far been sunk in oil and gas exploration projects in Africa

^^lets hold our breath for the time being:) wacha ikulane:cheers:

^^the china government is alleged to have pledged to undertake the entire second corridor projects at one shot, so is there any correlations between this and the expected oil discovery by the china oil firm CNOOC? :dunno:

by John Njiraini
The political and economic configuration of the East Africa region is set for a critical economic transformation as countries engage in an unprecedented oil race — even as Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/InsidePage.php?id=1144026647&cid=4&#) declares it is ‘smelling’ oil.
Prime minister Raila Odinga, who is currently in China on official duties, has successfully brokered a deal that would see oil from Southern Sudan exported through Kenya after refinement at the port of exit.
The deal and the recent discovery of oil in Uganda puts Kenya at a strategic position to claim a slice of the billions of dollars from oil revenue to transform her struggling economy that almost ground to a halt after the disputed General Election of 2007.
But this strategy appears to be running parallel to the muted talk in Government that a statement on discovery of oil on Kenyan soil could be coming before end-month. Energy minister Kiraitu Murungi was this week quoted by a regional paper saying: "In a matter of days we could be celebrating. God-willing, I shall be announcing an historical discovery at the end of this month." It is believed to be another Chinese venture, at Isiolo, which is 5 kilometres deep. Kiraitu added: "We have done our homework and all indications are that Kenya will join Uganda in celebrating the status of a new oil producer."

But with the biggest oil companies in hot pursuit of the few remaining major energy players, and just in case the dream of a Kenya with oil wells is a stillborn, Raila is driving a harder bargain to position the country as a gateway to the unexploited oil riches of Uganda and Southern Sudan.
Raila says Kenya, which has no oil of its own and could benefit from the disadvantaged position of both oil baskets as landlocked, turned to China as a second option. The initial agreement was the Sh270 billion deals with Qatar in exchange for 40,000 hectares of land to grow crops; but the deal was signed between the two states.
Chinese companies
But in what could make or break the economic prosperity of Kenya, Uganda and Sudan, countries in the region are already plotting on how to maximise benefits from the ‘black gold’.
In recent days, Kenya, Uganda and Southern Sudan have been cutting deals with mainly Chinese companies in what is being interpreted as an oil race for petrodollars.
Kenya, which until recently has been a passive player, has joined the race with excitement on the prospects of striking its own oil, but could still cash in from the petrol fortunes by providing infrastructure should her wells turn out to be dry.
Create employment
Raila’s successful negotiations with the Chinese Government would see oil from Southern Sudan exported through Kenya.
The Chinese Government has agreed to fund the construction of key facilities that include rail and road network, a pipeline, and refinery. "This deal is good for us because it means Kenya will benefit from transportation charges and creation of employment," said Mwendia Nyaga, the managing director of state-owned National Oil Corporation (Nock).
Raila himself said when the deal went through: "The Chinese offer the full package." He was referring to the fact that China’s offers a one-stop shop in terms of the financing and technical expertise with which its banks and construction firms have placated Africa.
Conservative estimates show that Kenya could earn a Sh7.5 billion annually for transporting 2.5 million tonnes of oil from Southern Sudan through Kenya.
Necessary infrastructure
This is based on projections that Southern Sudan exports 50,000 barrels per day, which translates to 2.5 million tonnes per year and using the fact that Kenya Pipeline Company (KPC) charges $40 per every ton that passes through its facilities.
According to experts, the immediate challenges are in building the necessary infrastructure to connect the two countries considering that a massive $1.6 billion (Sh125 billion) is required to build the 1,600 km pipeline alone from Southern Sudan to Lamu.
Though the most feasible strategy would be to build a pipeline from Southern Sudan and another one from Uganda to meet at around Lake Turkana and proceed to Lamu as one pipeline, huge egos among countries is hampering co-operation. "The investments required are enormous and there is need for close co-operation among the three countries," said Patrick Obath, the chairman of Kenya Private Sector Alliance (Kepsa).
The decision to go alone could see the region become a haven for oil facilities that are largely underutilised. According to Obath, construction of multiple refineries and pipelines creates challenges for the region and could end up being a costly affair in the long run.
"You don’t need facilities that would be idle most of the time," he said. This view gives Kenya unenviable position owing to its location to host the two oil rich neighbours.
Only recently, the Government of Southern Sudan passed a resolution to safeguard its oil resources starting with the construction of a $1.5 billion refinery with a capacity to process 50,000 barrels per day.
Uganda question
Coming soon after the launch of a report dubbed ‘Fuelling Mistrust’ by Global Witness that said Southern Sudan has not been getting a fair share of oil revenues from the Khartoum Government, the move has been interpreted as preparing to secede.
Southern Sudan is preparing for a referendum in 2011 to decide whether it should be an independent state from the North in accordance with the Comprehensive Peace Agreement signed in Nairobi in 2005.
Then there is Uganda, which has been complicating the political relations in the region with chest thumping since discovering huge deposits of oil in Lake Albert Rift Basin.
The country is currently undertaking a feasibility study for construction of a refinery with a capacity of 150,000 barrels per day at an estimated cost of $2 billion.
However, being a landlocked nation, Uganda must still construct a pipeline to export the refined product is torn between using Kenya or Tanzania for political reasons.
Revive her refinery
Though building a pipeline to connect the oil richttp://www.skyscrapercity.com/newreply.php?do=newreply&noquote=1&p=44805220h country to Port of Mombasa is cheaper, Uganda is contemplating building one to the Port of Dar-es-Salaam due to political instabilities in Kenya going by the post-election violence last year.
And as Kenya undertakes the upgrading of the Kenya Petroleum Refinery after selling 50 per cent to Essar of India, Tanzania is seeking for an investor to revive her refinery, which is currently acting as a bulk storage facility.
With demand for oil in the region estimated to be around 250,000 barrels per month, there is high likelihood that most of the facilities could become a waste of money in building them.
And although the demand for oil in the region has been on a steady growth in recent years, the rate of economic growthhttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/InsidePage.php?id=1144026647&cid=4&#) is not in tandem with the production of the refineries.


http://www.standardmedia.co.ke/InsidePage.php?id=1144026647&cid=4&

^^that is good idea too if we could not strike it at home we still benefit from the stages of the value addition process if our neighbours accept the noble gesture to export and transport their oil products through Kenya.:) good work agwambo:cheers:

http://www.nation.co.ke/business/news/-/1006/675124/-/if8jqlz/-/index.html

http://www.businessdailyafrica.com/Company%20Industry/-/539550/678718/-/u5u860z/-/index.html

http://www.businessdailyafrica.com/Company%20Industry/-/539550/678718/-/u5u860z/-/index.html

I wonder how long do we have to wait for the good news..

I wonder how long do we have to wait for the good news..

^^same here:lol: but the result could be known late next year:bash:

^^same here:lol: but the result could be known late next year:bash:

Im kinda hoping we don't get news at all. At least not now.

I think the best news would be to hear that we have put in place the necessary structures to ensure that the country and not some few individuals benefit. We really don't need another Equitorial Guinea. On the postive side though, North Eastern and Eastern provinces will be opened up.

some of you guys are terrified by Oil.

some of you guys are terrified by Oil.

...And I think we have a reason to be scared.

...And I think we have a reason to be scared.

I don't blame you. i don't know what would happen if we produced more Oil than we do now.

I don't like Oil. I think producing something like 100-250,000/ day is better than more than like a 1 million and more/day .having some production is good. but Oil is so sweet that you can't limit yourself when you have it flowing.

Oil is a curse and a blessing at the same time.

Any country in the world that is scared of an Oil curse is a fragile establishment with pathetic leaders.

The only countries in this category are African countries and a few South American countries.

Any country in the world that is scared of an Oil curse is a fragile establishment with pathetic leaders.

The only countries in this category are African countries and a few South American countries.

I believe a time is coming when we will have better leaders for this country. Until then, if they do find oil, I hope they keep their mouths shut.

I believe a time is coming when we will have better leaders for this country. Until then, if they do find oil, I hope they keep their mouths shut.

amen.

we have struck titanium at the coast and coal in ukambani and there isn't much ado about it. oil won't make a difference.

Any country in the world that is scared of an Oil curse is a fragile establishment with pathetic leaders.

The only countries in this category are African countries and a few South American countries.

They know their leaders very well. so yea, they are right when they are don't trust their leaders in the face of Oil.

I would never trust any Mobututist to rule the country because we all know their mentality .



Its like having lions to be guards for antilopes

Kenya and US firm Anardako Petroleum Corporation have signed an agreement for the exploration of five offshore oil and gas blocks in Lamu basin.

The ministry of Energy said the pact for blocks L5, L 7, L11A, L11B and L12 was signed by the Government to intensify the search for commercial crude oil and gas deposits.

Senior superintending geologist, Mr Hudson Andambi, said Anardako was awarded all the blocks because it has vast expertise in deep-sea exploration.

“Anardako is set to start its work programme,” he said during an oil and gas workshop in Nairobi organised by the East Africa Environment Network and the World Wide Fund for Nature.

Anardako, the largest independent deep-water oil producer in the Gulf of Mexico, also has production or exploration interests in Alaska, Algeria, Brazil, China, Indonesia, Mozambique and West Africa.

Andambi said the Government is committed to promoting Kenya as an exploration frontier and investment destination because 19 out of the 31 wells drilled in Kenya have traces of gas.

China National Offshore Oil Corporation started sinking the $26 million (Sh2 billion) Boghal-1-1 exploratory well in Isiolo North district last October 28, 2009. Drilling proper does not begin until April 2010.

He said various prospective horizons aim to test the existence of oil deposits. Included in the items recovered will be scientifically tested. Boghal will increase Kenya’s drilled density to one well in every 12,500 sq.km of the country’s 400,000 sq km.

Andambi said Bogal-1-1 is being drilled in the Anza basin, where 10 wells have been sunk in the past few months, with the maximum depth being 3,000 metres, and seven of the wells showed traces of oil and gas.

He added that the ministry of Energy will work with NGOs to manage community expectations as it takes about seven years before commercial production of gas starts when a discovery is made.

East Africa Environment Network said civil societies and government agencies doing oil exploration need to work together for greater production.
http://www.nation.co.ke/business/news/-/1006/856460/-/hdaearz/-/index.html

http://www.nation.co.ke/business/news/Canadian%20firm%20to%20begin%20oil%20search%20%20in%20North%20Eastern%20%20/-/1006/882868/-/f8nnh6/-/index.html

we have struck titanium at the coast and coal in ukambani and there isn't much ado about it. oil won't make a difference.

Have you ever heard of a titanium or coal 'curse'?

Guyz I wonder what the minister for energy was trying to get at with his famous statement that after two weeks their will be good news on the oil prospecting front -was it a marketing gimmick to keep the Chinese(CNOOK), Australians(Woodside) & Canadian prospectors on the hoops or otherwise?.

The discovery of “very high concentrations of natural gas” by a Chinese firm doing exploration in northern Kenya has raised hopes that the country could soon strike oil.

Optimistic but guarded reports from Boghal in Merti division of Isiolo district indicated that the China National Off-shore Oil Corporation had discovered the gas after drilling a depth of 4,600 metres.

High concentrations of gas normally indicate the presence of oil.

The news has had top officials in the ministry of Energy excited and could herald the major announcement forecast by Minister Kiraitu Murungi when he announced the start of drilling in October last year.

Ministry’s officials are said to have described the development at the Bhogal well as “very encouraging” and “positive” and plan to establish additional wells in the area.

The National Oil Corporation of Kenya announced last month that with 4456 metres drilled then, there had been no traces of oil or gas and the remaining 1100 metres would determine the success of the project.

“We have one month of waiting and hoping. We expect the depth to be covered by the end of March or mid-April. This means we need to continue crossing our fingers,” said NOCK managing director Mwendia Nyaga.

He said the fact that no hydrocarbons had been found in the upper layers raised hopes of discovery as it indicated the oil or gas had not escaped.

Oil has been discovered in Sudan, Uganda and Tanzania and Kenya is optimistic that it could soon join the league of oil-producing countries.

The Chinese have revived interest in oil exploration in Kenya, which had waned after 2006 when Woodside, an Australian firm, left after fruitless drilling in the Lamu area.

The Bhogal well is the 31st to be drilled in a series of fruitless explorations and the government maintains more wells would be sunk.

“In your lifetime, there could even be the 40th well. We believe there must be oil somewhere in Kenya. As much as easy oil is over, maybe there will be difficult oil in Kenya,” said Mr Nyaga.

Virtual scramble

The prospects of striking oil have resulted in a virtual scramble by international firms to either start drilling or conduct surveys to find out the chances of the existence of oil in parts of Kenya.

Vanoil Energy Ltd, a Canadian oil company, announced on Friday it plans to spend $4.8 million (Sh370 million) on a survey to map potential oil and gas deposits in North Eastern Province.


http://www.nation.co.ke/News/Fresh%20hope%20for%20oil%20discovery%20after%20gas%20find%20/-/1056/883698/-/item/1/-/ecttpxz/-/index.html

Welcome in commodity business guys.:)

I didn't know oil was discovered in Tanzania. Is it recoverable oil or just traces of it?

I didn't know oil was discovered in Tanzania. Is it recoverable oil or just traces of it?

^^they have gas which currently they use for electric generation

http://www.businessdailyafrica.com/Excitement%20over%20oil%20discovery%20rekindles%20false%20find%20memories/-/539546/889752/-/item/0/-/uc66s8/-/index.html

With the drilling of Bogal-1-1 exploratory oil well in block 9 near Merti in Isiolo North District entering home stretch, anxiety is building up.

Kenyans are waiting for the government to make an announcement as to whether the well has crude oil or gas once China National Offshore Oil Corporation (CNOOC) finishes the work mid this month.

The firm started the $26 million exercise on October 28, 2009 and expects to drill to a depth of 5.5 kilometres.

Chief geologist John Omenge said the well has been sunk to a depth of five kilometres with work expected to end in mid April.

“CNOOC has done a lot of work in block 9 and the Minister for Energy Kiraitu Murungi will make an announcement about the outcome of drilling at an appropriate time as Kenyans have high expectations,” he said.

Oil firm Shell in 1991 got small quantities of good-quality oil in at Loperot in Turkana.

In 2006, Woodside Energy drilled an offshore well in Lamu which triggered misplaced activism among locals. The well was dry. The local community in Lamu in early 2006 demanded that baseline strategic environmental assessment (SEA) studies be conducted before drilling.

According to National Oil Corporation of Kenya (Nock), it will take six months for drill cuttings and cores among items recovered from the well to be tested scientifically to determine presence oil or gas.

“We have to be cautiously optimistic about discovering oil until it actually happens. A commercial discovery will enhance Kenya’s energy security,” said managing director Mwendia Nyaga.

He said two prospective horizons for hydrocarbons targeting 3,000 metres and 5,000 metres of Boghal will give better results by yielding more data to be used in future exploration work.

The well will increase Kenya’s drilled density to one in every 12,500 square kilometres of the country’s 400,000 square kilometres.

Mr Kiraitu said the government wants to manage properly expectations and to give Kenyans maximum benefits of oil and gas resources if a commercial discovery is made.

“Kenya would like to manage oil and gas resources in a manner that promises maximum benefits to modernise physical and social infrastructure,” he said.

According to Petroleum Focus Ltd, a consultancy firm, striking of oil in Kenya will not translate to creation of thousands of jobs because exploration and extraction is highly capital intensive.

“Although oil extraction is highly mechanised, there will be an influx of people to a place where a discovery is made leading to a strain on existing housing and other facilities,” said director George Wachira.
Land use issues are bound to increase in Kenya as the Energy Act does not provide for a mechanism of laying a claim and sharing proceeds if Kenya strikes commercial quantities of oil and gas.

Management and sharing of money from sale of crude oil would be contentious with government, local authorities and communities claiming a larger portion, saddling in exploration companies.

Lands surveyor Ibrahim Mwathane said it is prudent to enter current exploration commitments aware of attendant issues bound to arise if prospecting is successful.

“Land use and environment issues will be in focus as communities, local authorities and government try to maximise benefits,” said the former chairman of Institution of Surveyors of Kenya.

Under the current laws of Kenya, the government retains ownership rights to any land under which lies mineral wealth, a factor that could easily be misunderstood and contested.

Ownership of land by individuals is up to six feet underground. The law states that from that depth, it is the property of the government. Presence of minerals makes land a source of conflicts.

The discovery of what has been termed “very high concentrations of natural gas” by a Chinese firm drilling for oil in northern Kenya has raised hopes that the country could soon strike oil and save on a product that accounts for nearly a fifth of the import bill.

Energy minister Kiraitu Murungi said China National Off-shore Oil Corporation (CNOOC) had discovered gas in Boghal well in Merti division of Isiolo district after drilling 5,085 metres.

The well is within Block 9 in the Anza Basin of northern Kenya.

“There are strong signs of a gas discovery. Give us one month to do the tests to ascertain whether there are commercial quantities,” Mr Murungi told a regional energy conference that opened in Nairobi on Tuesday.

CNOOC, which is working with other investors with rights to the Isiolo bloc—including Africa Oil, Lion Energy and China Petroleum Corporation, will conduct further tests and have ordered some specialised test equipment to survey the quantities.

“CNOOC and its partners are in the process of carrying out further tests to ascertain whether the identified gas in the four zones is available in commercial quantities. Kenyans are praying for a commercial discovery,” Mr Murungi told potential investors.

Industry experts say an early discovery of gas would provide Kenya with a ready market for the product within the economy and that it would require less capital and time than oil to exploit.

The high concentrations of gas normally indicate the presence of oil.

A hydrocarbon discovery can be either oil or natural gas, and in some cases, can be oil accompanied by natural gas.

The Chinese began drilling last October and have revived interest in oil exploration in Kenya, which had waned after 2006 when Woodside, an Australian firm, left after fruitless drilling in the Lamu area.

The Bhogal well is the 32nd to be drilled in a series of fruitless explorations and the government maintains more wells would be sunk.

State owned National Oil Corporation (Nock) says there are re 22 leased blocks, with 13 different companies operating on some of them. Drilling is about to start.

Among them is in the acquisition of 900 square kilometres of three dimensional data by Origin Energy, which has already completed 3D seismic data in Block L8, Lamu Basin.

“The data is currently being interpreted to identify drillable sites on Mbawa prospect, after which drilling will begin,” said Mr Murungi.

Andarko—the second largest US independent natural gas producer has rights to five blocks across the four basinjs of the country.
Early this year, the US firm found found gas in deep water offshore in Rovuma basin in Mozambique, raising hopes that due to similarities in geology of Kenya’s deep water acreage to that of Mozambique, more exciting discoveries were under way should the US firm step up drilling in Kenya’s Coast.

Industry expert George Wachira said early discovery of gas would provide Kenya with ready market for the product.
http://www.businessdailyafrica.com/Company%20Industry/Natural%20gas%20find%20raises%20hope%20of%20Kenya%20striking%20oil/-/539550/916574/-/item/1/-/nrhpbg/-/index.html

^^how is the price of natural gas?

http://www.nation.co.ke/business/news/New%20rules%20to%20guide%20use%20of%20cash%20from%20natural%20gas/-/1006/916184/-/11fqorvz/-/index.html

Kenyans will in another two months find out whether natural gashttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009374&cid=14&story=Optimism%20grows%20as%20gas%20deposits%20found#) deposits found in North Eastern Province are commercially viable.
Energy Ministry Kiraitu Murungi said a firm that has been prospecting for oil in the region had discovered natural gas amounts in several layers in a well sunk in Isiolo.
"Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009374&cid=14&story=Optimism%20grows%20as%20gas%20deposits%20found#) found no oil but showed strong indications of gas," Mr Kiraitu told Reuters Tuesday.
He said the firm will be undertaking tests to establish whether the amounts found can be exploited on a commercial scale.
The firm, China National Offshore Oil Corporation (CNOOC), will commence the tests in June and state whether Kenya has gas by July.
"CNOOC is in the process of carrying out drill stem test to ascertain whether the gas identified in four zones in one of the wells is available in commercial quantities. The tests will take one month and are scheduled to begin next month," said Kiraitu.
CNOOC has sunk one of the deepest wells in Kenya’s exploration history in Isiolo, going over five kilometres deep but has not found oil.
Exploration Bids
Despite years of unsuccessful oil exploration, the minister invited more bids from international firms in the search for the commodity saying a substantial number of the blocks set aside for exploration are yet to be leased out.
The Government has earmarked Lamu in Coast Province and Anza, Mandera and the Tertiary Rift in northern Kenya — which have a combined surface area of 400, 000 square kilometres and subdivided in 38 exploration blocks — as among the areas with high potential for oil.
"Currently, 24 blocks are under production sharing contracts operated by 12 international oil firms," he said.

Kenyans will in another two months find out whether natural gashttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009374&cid=14&story=Optimism%20grows%20as%20gas%20deposits%20found#) deposits found in North Eastern Province are commercially viable.
Energy Ministry Kiraitu Murungi said a firm that has been prospecting for oil in the region had discovered natural gas amounts in several layers in a well sunk in Isiolo.
"Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000009374&cid=14&story=Optimism%20grows%20as%20gas%20deposits%20found#) found no oil but showed strong indications of gas," Mr Kiraitu told Reuters Tuesday.
He said the firm will be undertaking tests to establish whether the amounts found can be exploited on a commercial scale.
The firm, China National Offshore Oil Corporation (CNOOC), will commence the tests in June and state whether Kenya has gas by July.
"CNOOC is in the process of carrying out drill stem test to ascertain whether the gas identified in four zones in one of the wells is available in commercial quantities. The tests will take one month and are scheduled to begin next month," said Kiraitu.
CNOOC has sunk one of the deepest wells in Kenya’s exploration history in Isiolo, going over five kilometres deep but has not found oil.
Exploration Bids
Despite years of unsuccessful oil exploration, the minister invited more bids from international firms in the search for the commodity saying a substantial number of the blocks set aside for exploration are yet to be leased out.
The Government has earmarked Lamu in Coast Province and Anza, Mandera and the Tertiary Rift in northern Kenya — which have a combined surface area of 400, 000 square kilometres and subdivided in 38 exploration blocks — as among the areas with high potential for oil.
"Currently, 24 blocks are under production sharing contracts operated by 12 international oil firms," he said.

Good but Isiolo is in eastern province, alongside marsabit and moyale.

Good but Isiolo is in eastern province, alongside marsabit and moyale.

^^remember history and geography are not their best subjects in Kenya :lol::lol::lol: same like Americans :)

http://www.theeastafrican.co.ke/news/-/2558/918934/-/pf3ma9z/-/index.html

The government should open up their minds about this mentality that Oil can only be explored in a 'desert dry area' look at the delta regions of Nigeria, Uganda's L. Albert areas where oil find is concenrated; these are by no means your typical dry areas, they need to start moving to all potential regions and provinces and explore for the same.

Does any-one know the name of the rig used to dril the deepest well in Kenya by CNOOC?

oil does not guarantee wealth....Kenya has the best manpower in Africa and we are more than capable to achieve high level growth and sustained development.....oil producing countries economies are not all that in many areas.....I agree oil, gas or even diamonds will help.....but lets quit on spending too much time and energy HOPING. A BIRD AT HAND IS WORTH TWO IN THE BUSH.

@ Kabul..You are right.Oil/Gas doesnt guarantee wealth.Kenya has other potentials which if exploited well will bring more than what oil can bring here...talk of expert man power,agriculture,her strategic position in EA to drive the region's economy,tourism...we have leading companies like KCB,Equity bank etc which shows that we can do alot more than just having oil.

oil does not guarantee wealth....Kenya has the best manpower in Africa and we are more than capable to achieve high level growth and sustained development.....oil producing countries economies are not all that in many areas.....I agree oil, gas or even diamonds will help.....but lets quit on spending too much time and energy HOPING.

Oil makes money very fast. In facts nothing makes more money and faster than Oil. Diamond is if you have a small like like Botswana or Namibia (barely 2 million people in the whole country) and it also depends on how much diamonds you produce. Most of which goes to politicians anyways.

Oil can develop your country very fast. Or it can turn into a curse (massive corruption you ever seen and conflicts as we have seen), but it all comes with the kinds of leaders you have.

But indeed, true wealth of a nation is it people. Educated population, resilient , disciplined population is what makes nations be what they are.

Oil makes money very fast. In facts nothing makes more money and faster than Oil. Diamond is if you have a small like like Botswana or Namibia (barely 2 million people in the whole country) and it also depends on how much diamonds you produce. Most of which goes to politicians anyways.

Oil can develop your country very fast. Or it can turn into a curse (massive corruption you ever seen and conflicts as we have seen), but it all comes with the kinds of leaders you have.

But indeed, true wealth of a nation is it people. Educated population, resilient , disciplined population is what makes nations be what they are.

^^hapo umeseme mwanamume :)

SO.. I think this was the 30th well dug in Kenya, and hopes were really high that this was it. Unfortunately not so. Quite disappointing, especially if they drilled 5km down. And still nothing. Yet Uganda discovered an oceanful of oil, Sudan has vast amounts... maybe we just dont have any?

We African Countries need to start focusing away from Oil/mineral resources.Look at World's biggest economies:- US,Japan,China,UK,Germany etc...does not do this oil extraction in their own territories,meaning economies can be build without these fucking minerals..they bring conflicts....see DRC,Angola,Sudan.lol

http://www.bloomberg.com/video/84367840/ brace yourselves

We African Countries need to start focusing away from Oil/mineral resources.Look at World's biggest economies:- US,Japan,China,UK,Germany etc...does not do this oil extraction in their own territories,meaning economies can be build without these fucking minerals..they bring conflicts....see DRC,Angola,Sudan.lol
It depends. How about Middle Eastern countries depending and managing their oil so well?

We African Countries need to start focusing away from Oil/mineral resources.Look at World's biggest economies:- US,Japan,China,UK,Germany etc...does not do this oil extraction in their own territories,meaning economies can be build without these fucking minerals..they bring conflicts....see DRC,Angola,Sudan.lol


does not do this oil extraction in their own territories,...they bring conflicts....see DRC,Angola,Sudan.

....they dont extract in their own territories, but they extract from other countries' territories, and cause an endless conflicts to those territories....LIbya, IRAQ, DRC, SUDAN, AFganistan.....all the richest and the biggest oil companies belong to them.

in fact, resources are worthy, reason why, thousands of their own men have died on those territories. lets keep on searching, and lets keep them way from us.

:cheers:

....they dont extract in their own territories, but they extract from other countries' territories, and cause an endless conflicts to those territories....LIbya, IRAQ, DRC, SUDAN, AFganistan.....all the richest and the biggest oil companies belong to them.

in fact, resources are worthy, reason why, thousands of their own men have died on those territories. lets keep on searching, and lets keep them way from us.

:cheers:

How do you "keep them away" if it's THEIR companies doing the exploration?

3D Seismic shooting offshore is done.Now its data interpretation and drilling later in the year.

http://img100.imageshack.us/img100/9643/bggroup.png (http://imageshack.us/photo/my-images/100/bggroup.png/)

Uploaded with ImageShack.us (http://imageshack.us)

How do you "keep them away" if it's THEIR companies doing the exploration?

…by introducing a balanced distribution, and reject all forms of social division.

..so simple!



:cheers:

3D Seismic shooting offshore is done.Now its data interpretation and drilling later in the year.

http://img100.imageshack.us/img100/9643/bggroup.png (http://imageshack.us/photo/my-images/100/bggroup.png/)

Uploaded with ImageShack.us (http://imageshack.us)

The Mbawa project seems very promising. If the consortium finds oil, the Chinese company CNOOC that had virtual exclusive offshore drilling rights and walked away after fruitless attempts will be sorely disappointed.

It looks like getting a substantial amount of these minerals is a very huge task especially when you focus on it for a long time and you get nothing in return like CNOOC.

The Mbawa project seems very promising. If the consortium finds oil, the Chinese company CNOOC that had virtual exclusive offshore drilling rights and walked away after fruitless attempts will be sorely disappointed.

CNOOC never had exploration acreage offshore but in the interior around Marsabit.
Yes,indeed the Mbawa prospect is very promising especially with the reported oil slicks on the ocean floor and very huge by any standard.But so is Kifaru.We'll know by the end of Q3, 2012.

These guys are already here.Is hard to get rid of them.See Gadaffi got rid of them for long time....What happened later?Now Libya will never be what it was before.

…by introducing a balanced distribution, and reject all forms of social division.

..so simple!



:cheers:

CNOOC never had exploration acreage offshore but in the interior around Marsabit.
Yes,indeed the Mbawa prospect is very promising especially with the reported oil slicks on the ocean floor and very huge by any standard.But so is Kifaru.We'll know by the end of Q3, 2012.

My mistake, I thought they had off-shore licenses around the Lamu area. I'm surprised they didn't try to buy into one of those projects... or they might have tried and got turned down. I've always said, the region around Lake Turkana will be the first to produce oil moreso than Isiolo. We'll see. I'm keeping my fingers crossed.

Africa Oil Spuds Ngamia-1 Well in Kenya
VANCOUVER, BRITISH COLUMBIA, Jan 25, 2012 (MARKETWIRE via COMTEX) -- Africa Oil Corp. ("Africa Oil" or the "Company") /quotes/zigman/479790 CA:AOI +4.14% (omx:AOI) is pleased to announce the spudding of the Ngamia-1 well on Block 10BB, Kenya. Tullow Oil plc is the operator with a 50% working interest and Africa Oil holds the remaining 50%. Please see attached map: http://media3.marketwire.com/docs/AOI0125.pdf

The Ngamia-1 well will be drilled to a projected depth of 2,700 meters to test the oil potential in Miocene age sandstones. The well is located in the Lokichar basin, a north-south trending rift basin that is part of the East African Rift System. Live oil was encountered in the Lokichar basin by the Loperot-1 well which was drilled in 1992 and recovered 29 degree API crude from Miocene sandstones.

The Ngamia-1 well will test a prospect that is similar to oil prospects drilled by Tullow and its partners early in the exploration efforts in the Lake Albert Rift Basin of Uganda. Drilling and evaluation of the well is expected to take between 60 and 90 days. A number of prospects and leads have been mapped and would be prospective following a success of the Ngamia prospect. The Ngamia-1 will be the first well drilled on the block by the partnership and will mark the start of a multi-well drilling program in Block 10BB and adjacent blocks.

Keith Hill, President and CEO of Africa Oil, commented, "We are very excited to be drilling our first well with Tullow. They've had enormous success with the Lake Albert Rift Basin project where in excess of 1 billion barrels have been discovered and this shares many geological similarities with our Kenyan assets. Our Ngamia prospect could be a play opener for another great success in the region."

- Source: Tullow presentation - P50 Discovered and Prospective

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya, Ethiopia and Mali as well as Puntland (Somalia) through its 51% equity interest in Horn Petroleum Corporation. Africa Oil's East African holdings are in within a world-class exploration play fairway with a total gross land package in this prolific region in excess of 300,000 square kilometers. The East African Rift Basin system is one of the last of the great rift basins to be explored. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the major Albert Graben oil discovery in neighbouring Uganda. Similar to the Albert Graben play model, Africa Oil's concessions have older wells, a legacy database, and host numerous oil seeps indicating a proven petroleum system. Good quality existing seismic show robust leads and prospects throughout Africa Oil's project areas. The Company is listed on the TSX Venture Exchange and on First North at NASDAQ OMX-Stockholm under the symbol "AOI".

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Afren to start drilling eploratory well in June 2012.

Should try drilling in lake Victoria region

Should try drilling in lake Victoria region


They should, just what i have been thinking!! There is a particular area in the Lake Victoria region which is rumoured to have oil. Rumour also has it that the reason why Museveni is fighting over Migingo is because of the oil potential. He claims that 'Migingo Island is Kenyan but the waters belong to Uganda'. Museveni is not saying that for the sake of saying it.

Anyway, they obviously need more evidence than the above reasons (read: rumours) stated :lol:, but i wish they would try other regions than the ones they have been trying.

The precious sweet dark matter....

kenya+oil= no bueno(in my view, atleast as of right now)