Corporate News
Oil and gas reserves have been discovered in Kenya, attracting more
investors seeking a piece of the multi-billion-shilling business. PHOTO |
FILE | NATION MEDIA GROUP
By GERALD ANDAE
In Summary
London Stock Exchange-listed oil explorer Afren Plc
seeks to start drilling in Mandera and Wajir counties following the
release of an environmental impact report.
National Environment Management Authority (Nema) has issued
the study on the drilling of hydrocarbons and oil in Bur Wein in Mandera
and at Konton in Wajir. Afren had filed environmental disclosure with
Nema for Block-1 that falls under Mandera basin.
“Environment Management Authority (Nema) has
received an environmental impact assessment study report for the
proposed project,” reads a gazette notice.
The proposed activities include site preparation,
equipment assemblage, well foundation, rig building, drilling and
restoration of the well site. The first results of exploration will be
issued in five months after the start of drilling.
Oil exploration in Kenya has gathered pace with the
discovery of reserves in Turkana by British prospector Tullow, which is
also drilling additional wells in the Kerio basin (Epir-1) and Northern
Turkana (Engomo-1).
Australian oil firm Pancontinental announced in
June that it had discovered oil and gas after drilling the Sunbird-1
well in Block L10A, situated off the coast of Mombasa. The proximity of
the Wajir drilling site to the Somalia border, which lies just 10
kilometres away, could pose a security worry.
There has been an ongoing dispute between Kenya and
Somalia over the maritime border of the two countries which lies in an
area with potential oil reserves in the Lamu basin, prompting Somalia to
move to a UN court seeking determination of the boundary.
On Thursday last week, Tullow Oil announced a
discovery of oil at the Etom 1 exploration well that it said extended
the already proven South Lokichar basin significantly northwards. It
said that following the success of the South Lokichar basin, the site
would be extended to cover a further 247 square kilometres in the
northern area.
About 30,000 square kilometres in Marsabit, Lamu
and Turkana counties were last year issued to oil companies to carry out
exploration.
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