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Data reveals potential for rich oil wells near Lamu

Data reveals potential for rich oil wells near Lamu
Written by Jim Onyango

05-June-2007: Two international oil and gas exploration firms say they have acquired new data that reveals potential for 1.1 billion barrels of oil near Lamu.
Australia-based Gippsland Offshore Petroleum and its partner, Pancontinental Oil & Gas, say they have completed a geophysical survey of Lamu basin by air and gathered data that will be processed in Melbourne.

The information will be integrated with recently acquired seismic data, and the companies say they hope to commence mapping the drillable sites in August.
Kenya has yet to discover any oil or gas reserves, but the country is riding a boom in exploration interest in east Africa.
Northern neighbour, Sudan, which started exporting oil in 1999, has become the third largest oil producing country in Africa, yielding about 400,000 barrels of crude oil a day out of reserves of 563 million barrels.

Uganda’s reserves are estimated at 250 million barrels with initial production of up to 10,000 barrels a day, expected to begin in 2009.
“The area is poorly explored and understood, but wells in the block indicate prospects of oil and gas,” said Gippsland in a release. “To date, mapping in the block has located four key leads with potential to house an un-risked 1.1 (billion barrels) of oil and 5.5 (trillion cubic feet) of gas.”
In a joint venture with Pancontinental, also based in Australia, the firm has rights to Block L6, which has a mixture of on and off-shore area.
The airborne survey is considered key in linking onshore and offshore geology.

“Kenya, with its high petroleum potential, attractive Government commercial terms, proximity to the growing East African and Indian energy markets, is a high quality component of Gippsland Offshore’s ongoing exploration portfolio” said the firm.

If sustainable drill targets are identified, said Gippsland, the project will move to drill two wells within four years. Gippsland Offshore holds a 60 per cent operating interest in the block rights, with Pancontinental holding the rest.

Gippsland has a wide portfolio of exploration projects, including a large offshore project in Jamaica, as well as operations in France. Before the Kenyan exploration, the company had operations in Madagascar.

L6 is one of 17 blocks that the National Oil Corporation of Kenya has made available to interested foreign firms.
Another Australian exploration firm, Woodside Energy Ltd, announced last year that the results of a well it dug in nearby offshore block L5 had not shown any petroleum deposits.

The Government has extended Woodside’s oil exploration contract by 16 months, to July next year.

In 2004, Woodside withdrew from Afrex, a joint venture with Pancontinental for exploration in L6 as well as L8, another coastal block.
At a recent United Nations oil and gas conference in Kenya, the Government said it would issue more exploration licenses in a bid to thrust Kenya into global oil exploration and to capitalise on booming interest in Africa’s energy.

Six exploration licences have so far been issued by the government, and Energy Minister Kiraitu Murungi said large, promising areas onshore and offshore had yet to be investigated.

Players at the recent conference on gas and oil trade spoke highly of east Africa’s potential for petroleum discoveries. Poor quality data collected in the 1960s and 1970s was said to have wrongly painted the region as likely to contain gas but no or little oil.

Experts have said the geology of east Africa is more complex than that of West Africa, where the continent’s biggest reserves have been found so far. Now, however, the latest seismic and geochemical techniques could be harnessed to find deposits.
 

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1.1 billion barrels - that's pretty good.

If you can get up to about 15 billion barrels you can consider yourself a major oil-producing nation. :)
It would be great if Kenya were to join the league of major oil producing nations. After the oil discovery in Uganda, there is suddenly an increased interest in the East African region. I just hope the countries can manage the oil revenues well.
 

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But where in Black Africa have oil revenues ever been managed well? Chad was supposed to be the "new model" of how oil money should be spent and that didnt even really work. I think Ivory Coast is quite good, they produce enough oil to be self-sufficient with some surplus to sell.

But 1billion barrels, thats a sure lot of oil. Hopefully the gas can be used for power generation too. My advice is to buy shares in the company, one can make a huge profit from investing in small companies which have discovered oil.
 

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kenya without any major natural rescource has a fairly good economy. i cannot even begin to imagine what the oil maney would do to the kenyan economy. kenya is among the top seven economies in africa and it is a stable country, when you inject oil money kenya would be a second south africa
 

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But where in Black Africa have oil revenues ever been managed well? Chad was supposed to be the "new model" of how oil money should be spent and that didnt even really work. I think Ivory Coast is quite good, they produce enough oil to be self-sufficient with some surplus to sell.

But 1billion barrels, thats a sure lot of oil. Hopefully the gas can be used for power generation too. My advice is to buy shares in the company, one can make a huge profit from investing in small companies which have discovered oil.
Well, you may be right to be skeptical about some things with regards to Africa's history with oil. But do remember that there have been nations in Africa, such as Gabon and possibly the republic of the congo that, while still dealing with things like corruption, have done reasonably when in developing decent living standards with their oil revenues. I'm sure that kenya, given it's already good economic standing among african nations, will manage to do even better.
 

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Gabon has done better than the others but its all relative. It still did really badly. When you compare it to what Nigeria did (or didnt) do with oil revenues it looks good in comparison. Bongo's daughter was on TV the other day, looking for a $30million mansion in Beverly Hills, where did she get the money from?

There are two Gabons, one where people pay $11 for eggs imported from France, drink Champagne on a regular basis. Then the rest of the population is poor.

Only Arab-Africa has really managed oil revenues well. I think the Kenyan economy is going the be THE story of Africa in the next decade. I believe 10% grwoth rates is only a few years away. I fear that oil, if found in large amounts, may destabilise the country, destroy the strong agricultural sector and generally have negative consequences.
 

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I dont understand why you think oil would destabilise kenya. Just because other african countries have not been able to manage there oil resources wel doesnt meam the same wil happen in kenya. Kenya has a gvnt that is transparent and accountable to its people. Those coments realy sound absurd.
 

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As I siad, no black Afrian country has ever managed to manage its oil reserves well. I wouldnt trust any SS African country outside of SA, Namibia and Botswana to manage oil well. Even my in own Ghana, which is much less corrupt than Kenya, I would weep the day they foung a lot of oil.
 

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As I siad, no black Afrian country has ever managed to manage its oil reserves well. I wouldnt trust any SS African country outside of SA, Namibia and Botswana to manage oil well. Even my in own Ghana, which is much less corrupt than Kenya, I would weep the day they foung a lot of oil.
:eek:hno: :eek:hno: :eek:hno:
 

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Gabon has done better than the others but its all relative. It still did really badly. When you compare it to what Nigeria did (or didnt) do with oil revenues it looks good in comparison. Bongo's daughter was on TV the other day, looking for a $30million mansion in Beverly Hills, where did she get the money from?

There are two Gabons, one where people pay $11 for eggs imported from France, drink Champagne on a regular basis. Then the rest of the population is poor.

Only Arab-Africa has really managed oil revenues well. I think the Kenyan economy is going the be THE story of Africa in the next decade. I believe 10% grwoth rates is only a few years away. I fear that oil, if found in large amounts, may destabilise the country, destroy the strong agricultural sector and generally have negative consequences.


What if the oil revenues are parked away in a trust fund that may only be accessed after a certain period of time or for emergency purposes? I think this would work as Kenya would still keep the money from oil and the country would still continue to concentrate on the agricultural, tourism,
Industrial and commercial sectors that are sustaining it today.
 

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May i ask, how much oil in barrels does Nigeria, Algeria and Angola have in reserve
Algeria: 11 billion bbl (2006 est.)

Nigeria: 36.25 billion bbl (2006 est.)

Angola: 25 billion bbl (2006 est.)

Source: https://www.cia.gov/library/publications/the-world-factbook/geos/xx.html

Note: The reserves for Angola will probably go up, and in fact already have in the last year-it's still a bit underexplored overall, since the war ended just recently(5 years so far). It might take a few mor eyears of exploration to fully uncover the nation's potential.
 

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Thanks Dante. Wow, with that amoumt of oil and its relatively small population Angola should be a little heaven in Africa in a decade or so
 
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