Update on Oil and Gas Exploration Activities in Kenya
Kenya has a total of 63 exploration blocks demarcated across its four (4) sedimentary basins; Tertiary Rift Basin, Anza Basin, Mandera Basin, Lamu (Onshore & Offshore) Basin. Currently, there are 19 oil and gas companies operating in Kenya as sho
Kenya has a total of 63 exploration blocks demarcated across its four (4) sedimentary basins; Tertiary Rift Basin, Anza Basin, Mandera Basin, Lamu (Onshore & Offshore) Basin. Currently, there are 19 oil and gas companies operating in Kenya as shown in the table below:
Operator Block(s)
1. A-Z Petroleum L1A & L3
2. Africa Oil Corporation 9* (pending relinquishment)
3. Anadarko L11A, L11B & L12
4. CEPSA 11A
5. Delonex Energy 12A
6. ENI L21, L23 & L24
7. FAR Ltd L6 & L9
8. Imara Energy L2
9. Lamu Oil & Gas Ltd L14
10. Lion Petroleum 2B
11. Milio E&P L20
12. National Oil Corporation of Kenya 14T
13. Octant Energy 1, L17 & L18
14. Rift Energy L19
15. Shell L10A & L10B
16. Simba Essel Energy 2A
17. Total L22
18. Tullow Oil 10BA, 10BB, 12B & 13T
19. Zarara Oil & Gas L4 & L13
Table 1: Oil and Gas Companies operating in Kenya
The map below illustrates the International Oil and Gas Companies operating in Kenya as well as their respective Blocks:
Map 1: Kenya Exploration Block Map
Tullow Oil, Blocks 10BB & 13T
Blocks 10BB & 13T, located in Turkana County, are operated by Tullow Oil with a 50% ownership interest. Other Joint Venture Partners include Africa Oil Corporation and Total both having a 25% working interest each. Activities at the oil fields in the two Blocks, dubbed the South Lokichar Basin Project, located in Turkana County are now at the pre-development phase.
Tullow Oil anticipates spending $80 million in pre-development phase and $90 million in exploration and appraisal in Kenya, totalling to about $170 million (approx. KES 17 billion shillings).
Tullow Oil has reported a reduction of the oil resources to 560 million barrels in place (2C contingent resources), a reduction from the previously announced 766 million barrels.
The Joint Venture Partners have proposed for Phased Development (as captured in the Map below) of the South Lokichar Basin project, with the initial development phase planned to commence at the Amosing and Ngamia fields. This will involve;
An initial 210 wells through 18 well pads at Ngamia and 70 wells through 7 well pads at Amosing,
A planned 60,000 to 80,000 barrels of oil per day (bopd) Central Processing Facility (CPF), and
A crude oil export pipeline from Lokichar to Lamu.
Map 2: South Lokichar Development Phases (Source: Africa Oil Corp September 2018 Presentation)
Front-End Engineering and Design (FEED)and Environmental and Social Impact Assessments (ESIA) activities for the above developments are currently ongoing, with the Joint Venture Partners expected to make a Final Investment Decision by end of 2019, with First-Oil targeted for 2021/22. Contracts for FEED of the upstream project and the pipeline have already been awarded to WorleyParsons and Wood PLCrespectively.
Zarara Oil and Gas Ltd, Block L4
Drilling of natural gas at the Pate-2 well, located at Lamu County’s Pate Island, commenced on 26th April 2018. The well was initially drilled to a top-hole drilling depth of 300 metres by a small powered drilling rig (pictured as Rig 1) as the company waited for the arrival of the Sakson rig (pictured as Rig 2) in mid-July 2018 that continued drilling of the well to a targeted total depth of 4,500 metres.
The company also plans to drill a second well, Pate-3, which will be dependent on the success of Pate-2.
Rig 1: Drilling Spares & Services Ltd
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Octant Energy, acquired Blocks 1, L17 & L18 from Afren’s subsidiary East Africa Exploration (EAX) Limited in 2015. Octant plans to carry on with exploration activities in its three blocks, with plans to concentrate on the drillable prospects already identified in the Blocks in a program that will see the acquisition of additional 2D seismic data and the possible drilling of four exploration wells.
The company plans to acquire 2D seismic over the El Wak prospect, Mandera Basin, in Block 1. Oil seeps have in the past been identified in the Block, with the most notable one being the Tarbaj oil seep, confirming the presence of an active hydrocarbon system.
Exploration activities in the block are currently suspended. FAR’s planned 2D seismic survey program continues to be delayed due to continued issues concerning land access in its area of operation situated in Lamu County. To this end, Ministry of Petroleum and Mining has granted FAR a temporary suspension of its work permit commitments for its second exploration period as the Government of Kenya continues its effort towards resolving the land issue.
FAR recently announced that it has terminated its farm-in negotiations with Milio International Group, its partner on the onshore part of the block. "Enduring land access issues to the Kipini Conservancy was the prevailing factor as efforts to negotiate an alternative farm-in agreement could not be reached”, FAR reported in a recent update.
The company’s activities are therefore pegged on land accessibility at the Kipini Conservancy. Once this issue is resolved, FAR plans to continue with its exploration program with the acquisition of a 2D seismic survey as well as conducting an onshore drilling Environmental Impact Assessment (EIA) study.
Map 4: Map showing FAR’s Block L6
Delonex Energy, Block 12A
During the year, operatorship of Block 12A was transferred from Tullow Oil to Delonex Energy. This was then later on followed by a farm-out agreement between the two partners whereby Delonex Energy increased its interest to 60%.
Following its 2D seismic survey campaign that was undertaken earlier in the year, we anticipate that the company is currently analyzing the data to identify drillable prospects. Activities in Block 12A, located in the Kerio Valley Basin, were buoyed by the success of the Cheptuket-1 well drilled in 2016 that encountered significant oil shows over a 700m interval. This indicates the presence of an active hydrocarbon system, and is thought to be the most significant well result to date in the East African Rift outside the South Lokichar basin.
Map 5: Map showing Delonex Energy’s Block 12A
Africa Oil Corporation, Block 9
Media reports suggest that Africa Oil Corporation has issued a notice to the Government of Kenya (Ministry of Petroleum and Mining) on its intent to relinquish its Block 9 100% operating interest. The company has drilled two wells in the block, Sala-1 and Sala-2, with the former being a natural gas discovery. However, Sala-2 appraisal well was termed as a dry well.
Map 6: Map showing Block 9
Simba-Essel Energy, Block 2A
The company plans to commence a 3D seismic survey program, previously planned to commence in Q1 2018, which is expected to acquire approximately 160 square kilometers of seismic data. The 3D survey program is anticipated to derisk the 29 prospects leads identified from a previous 2D seismic survey program.
After completion of the 3D seismic program and the identification of drillable targets, the company plans to drill an exploration well of approximately 3,000 metres, possibly in 2019.
Map 7: Map showing Simba-Essel Energy’s Block 2A
Lamu Oil and Gas Ltd, Block L14
Lamu Oil and Gas Limited, a joint venture between Edgo Energy and QFB, plans to conduct an infill 2D seismic survey program over prospective areas identified through the previously 2D seismic survey campaign which acquired approximately 734 kilometres of data. Drill preparatory works will commence after seismic interpretation of the infill seismic data and a suitable drillable target has been defined and de-risked.
The Company is also currently considering approaches by parties interested in farming into Block L14.
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Update on Oil and Gas Exploration Activities in Kenya
Kenya has a total of 63 exploration blocks demarcated across its four (4) sedimentary basins; Tertiary Rift Basin, Anza Basin, Mandera Basin, Lamu (Onshore & Offshore) Basin. Currently, there are 19 oil and gas companies operating in Kenya as sho