Browsing: Oil exploration in kenya

Kenya first announced the discovery of oil in Block 10BB and 13T in Turkana in March 2012.

This became a beacon of hope for the nation, to massively spur economic growth through the so-called ‘petro-dollars’. Currently, Tullow is the project operator and has a 50 per cent stake, while Africa Oil Corp and Total Energies hold 25 per cent each. However, the country is yet to fully commercialize crude oil production. Hitherto, Kenya’s petrodollar dream has only experienced delays and missed deadlines. The project stalled as the companies’ focus was on mitigating debt and finalizing its development programme.

The major road block has been a lack of sufficient working capital, which has led to a scale back in activities to minimize capital investment, until both a strategic partner and the Final Development Plan (FDP) are approved. Since the start of the year, the firm has been engaged in discussions with the government, on the approval of its FDP and securing their deliverables thereof. Currently, the government has extended the review period of the FDP to the November 6, 2022.

“These items require satisfactory resolution before the Group can take a final investment decision. Due to the binary nature of these uncertainties, the Group was unable to adjust the cash flows or discount rates appropriately,” Tullow explained.

NOCK completed a Magnetotelluric (MT) exercise on the Magadi sub-basin at the end of the previous year, intending to gather data as the company strives to improve the quality of its data on the block to assist in the identification of drill-able prospects within the block.

The exercise was designed to gather more data because the Corporation wants to help identify drill-able prospects within the block. The Corporation is currently conducting a number of further studies for the purpose of data collecting, which will assist in marketing the block to prospective farm-in partners.

As a result of the completion of the initiatives, the Corporation’s connection with the communities that live within the block has significantly improved.