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UK firm reports oil and gas find
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By ZEDDY SAMBU The EastAfrican

Posted Saturday, March 15 2014 at 12:26
IN SUMMARY

Energy Cabinet Secretary Davies Chirchir, who termed the discovery as a significant find, said it was also unique in the sense that both minerals were discovered in the same well.
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British gas has discovered off-shore oil and gas deposits in Lamu at the Kenyan Coast.

This becomes the second company to find the precious resources in Kenya after Tullow, which discovered oil in Turkana in 2010.

Energy Cabinet Secretary Davies Chirchir, who termed the discovery as a significant find, said it was also unique in the sense that both minerals were discovered in the same well.

“This is a very prospective discovery, though we are yet to determine whether it commercially viable,” Mr Chirchir said on Friday while addressing a forum of energy sector players in Nairobi.

The company, which is licensed to explore gas, made the twin discovery on the offshore Block L10A and will now carry further tests to determine commercial viability. “The block is situated near the Mbawa1 and L4 with a high potential for gas,” Mr Chirchir said.

Titanium, rare earth and niobium have been discovered in Kwale County also on the Kenyan coast.

The latest oil and gas discovery, if confirmed to be commercially viable, will significantly alter the economic importance of the coastal region. It will also boost to the planned Lamu Port and Southern Sudan-Ethiopia Transport (Lapsset) Corridor project.

Lapsset incorporates refineries, pipelines, railways, roads and resort cities and is expected to link Kenya with its two northern neighbours, Southern Sudan and Ethiopia, while opening up the marginalised northern areas.

The block is owned by BG Group with a 45 per cent interest. Other partners are Thailand’s PTTEP (15 per cent) and Pancontinental Oil & Gas (15 per cent).

Another company, Premier Oil, withdrew its 20 per cent stake from the block last year.