In Summary
  • A Canadian exploration company, Africa Oil, and its partner, Tullow Oil Plc, Tuesday announced fresh discoveries of oil and natural gas in the Ngamia-2 well, in Turkana.
  • Africa Oil also announced a gas discovery at block 9 in Marsabit, which it operates jointly with Marathon Kenya Oil Limited.
  • The new discovery added to the Turkana finds which have already been assessed to be commercially viable with the government preparing to start production by 2018.
  • President Uhuru Kenyatta has urged Turkana residents to convert their land into equity in the pipeline to earn dividends and secure a long term source of revenue.

More oil and gas has been discovered in Kenya, raising the prospects of turning the country into an oil and gas producer.

A Canadian exploration company, Africa Oil, and its partner, Tullow Oil Plc, Tuesday announced fresh discoveries of oil and natural gas in the Ngamia-2 well, in Turkana.

The well is located 1.7 kilometres from Ngamia-1 where the maiden discovery was made in March 2012.

Africa Oil also announced a gas discovery at block 9 in Marsabit, which it operates jointly with Marathon Kenya Oil Limited.

According to a statement from the firm, the Sala-1 well was drilled to a total depth of 3,030 metres.

A third party independent assessment of the larger Bogal area, which covers up to 200 square kilometres, revealed that it could be containing up to 1.8 trillion cubic feet of gas which experts said was significant.

“Africa Oil is pleased to announce it has made a gas discovery in Block 9 onshore Kenya,” the firm’s CEO, Keith Hill, said in note to shareholders. 

Bogal-1 well was abandoned in 2010 by Chinese state-owned explorer, CNOOC, after it encountered no oil.

The announcement comes a week after British Gas Group announced the first offshore (deep water) oil discovery in Lamu’s block L10A which it operates jointly with Australia’s Pan Continental and Thailand’s PTTEP.

The new discovery added to the Turkana finds which have already been assessed to be commercially viable with the government preparing to start production by 2018.

The ministry of Energy is preparing to issue an international tender for the construction of a crude oil pipeline connecting the Turkana oil field with Lamu port.

The pipeline has a completion date of 2016.

According to Africa Oil, drilling of Ngamia-2 well encountered up to 39 metres of oil and 11 metres of natural gas.

Page 1 of 2