Tullow’s Ngamia 1 oil exploration site in Turkana: The British firm says
it will resume exploration as Kenya plans crude exports by 2017. PHOTO |
FILE
By ALLAN ODHIAMBO, aodhiambo@ke.nationmedia.com
In Summary
- The firm had heavily cut back on exploration activity within the basin on the effects of low global oil prices and instead focused on evaluating drilled wells to lower pressure on its work budget.
- Kenya has expanded the area targeted for exploration on blocks 10BB and 13T following the recent discovery of oil in three fields within the Lake Turkana basin.
- Kenya is considering moving its crude oil to Mombasa by road and railway as part of an “early harvest” programme.
UK’s Tullow Oil has raised reserves estimates in
Turkana up to one billion barrels and targets to resume exploration to
consolidate recoverable oil ahead of next year when Kenya plans crude
exports.
The firm had heavily cut back on exploration activity within
the basin on the effects of low global oil prices and instead focused
on evaluating drilled wells to lower pressure on its work budget.
“The group continues to review options for
re-starting the exploration campaign in this basin to de-risk the
overall upside potential of one billion barrels,” Tullow said on
Thursday even as it raised its recoverable oil estimates in Kenya by 25
per cent to 750 million barrels.
Tullow with its partners Africa Oil and A.P.
Moller-Maersk had previously put recoverable reserves within the South
Lokichar basin at 600 million barrels.
“Ongoing assessment of recently completed South
Lokichar appraisal programme in Kenya indicates potential to increase
recoverable resources up to 750 million barrels with further exploration
potential supporting an upside of 1 billion barrels,” it said.
Kenya has expanded the area targeted for
exploration on blocks 10BB and 13T following the recent discovery of oil
in three fields within the Lake Turkana basin.
An update by the Petroleum Directorate said the
move follows discoveries on Etuko, Ewoi and Ekunyuk prospects —making up
the nine discoveries for the proposed field development plan area in
the South Lokichar basin.
The British firm in March announced an additional
discovery of potential oil reserves in the Cheptuket-1 well in the Kerio
Valley Basin, which could mean opening up a second oil basin for
development in the country where finds have been made in south Lokichar
basin.
Tullow said it will focus on developing the oil
wells, buoyed by higher reserve estimates and a decision by Kenya to
build its own crude pipeline.
“Tullow will now work with the Government of Kenya
and our partners on a range of options for the independent development
of these resources including early production using existing
infrastructure which would provide valuable reservoir data ahead of a
full field development with an export pipeline” the explorer said.
Kenya is considering moving its crude oil to Mombasa by road and railway as part of an “early harvest” programme.
The Energy ministry has offered Rift Valley
Railways a contract to move the oil over a distance of more than 800km
from Eldoret to Mombasa.
Energy and Petroleum secretary Charles Keter told a
parliamentary committee that the country targets to start exporting
2,000 barrels of crude oil per day by rail and road as it awaits the
completion of a planned oil pipeline linking Lokichar to Lamu through
Isiolo.
The pipeline is projected to cost Sh425 billion and is marked for completion by the second quarter of 2021.
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