Appears that the Kenyan Government has no doubt that the second well will be undertaken and with only 20% of Kenya's oil prospects left the joint venture would want to pursue it in accordance with the agreement with the Kenyan Government
The Nation (Nairobi) 29 May 2007 Posted to the web 29 May 2007 Kennedy Senelwa Nairobi
Three Australian firms will next year drill three offshore exploratory oil wells in Kenya.
Energy director, Don Riaroh, said the three firms, Woodside Energy, Gippsland Petroleum and Origin Energy, will sink the wells in different oil exploration blocks along the coast in accordance to the agreements signed with the Government.
Contracts signed by the Government and the three Australian firms require wells be sunk within an agreed time frame when the Indian Ocean's current's are not strong as the exercise is expensive.
Speaking during the just concluded African oil and gas, trade and finance conference in Nairobi, Mr Riaroh said Kenya had steeped up the search for commercial viable quantities of crude oil (hydrocarbons).
Kenya currently has very few open blocks remaining for exploration. The Government has stepped up promotion of the country for oil exploration by offering good incentives and low cost entry requirements to investors.
The National Oil Corporation of Kenya (NOCK) and Somken Upstream, which has teamed up with East Africa Exploration (EAX) are among the companies that have applied for award of licences. Up to 80 per cent of Kenya's exploration blocks have been leased, and an inter-ministerial committee is set to meet soon to deliberate on awarding of licences for the remaining acreage to investors.
Despite 31 wells having been sunk dating from Kenya's pre-independence period, luck is yet to strike.
Woodside Energy said Kenya has the best prospects n East Africa. General manager Peter Grant, said information from Pomboo well in block L5 off the coast of Lamu are still being studied.
"The well was plugged in January this year upon reaching a depth of 4,887 metres. Whilst the presence of significant reservoir sands was encouraging, hydrocarbons (which indicate presence of oil) were not encountered," he said.
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