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Canadian firm to begin oil search in North Eastern

By KENNEDY SENELWA

Posted Friday, March 19 2010 at 17:48

A Canadian oil company will spend $4.8 million (Sh370 million) on a seismic survey to map potential oil and gas deposits in North Eastern.

Vanoil Energy Ltd will undertake the survey in Block 3A to map out potential oil and gas deposits, according to its chief executive officer Dal Brynelsen.

The survey, to begin in May, will be undertaken by a contracted company. Actual field data will be available from July to August. Final results after data processing and interpretation is expected before year end.

Exploration in Block 3A dates back to 1970s when Chevron drilled one exploratory well. Mr Brynelsen said Vanoil had signed a production sharing contract with the Kenyan Government in 2007 for the exploration of Block 3A.

The block, situated in the Anza Graben basin, covers 12,192 square kilometres. Another company, Pancontinental Oil and Gas, has completed the survey of Block L8 offshore of Kenya to map out potential hydrocarbon deposits. Interim results are expected in the second quarter of 2010.

Pancontinental's chief executive officer Barry Rushworth said full results were expected in July and the firm, together with Origin Energy, will select a drilling location. Drilling is expected in the second half of 2010.

He said Fugro Geoteam SA acquired more than 800 square kilometres seismic data over Mbawa prospect in Block L8 under supervision of joint venture partner Origin Energy from December 2, 2009.

He said the current mapped area of Mbawa is 179 square kilometres and "slicks" of light oil or condensate are interpreted from satellite data on the sea surface.

"These are thought to result from sea floor leakage, suggesting the existence of an active petroleum generating system. Other prospects in L8 are also associated with interpreted slicks," he said.