1. Status of Oil & Gas Exploration in Kenya
Dr. Peter K. Thuo, PhD
E&P Team Leader
National Oil Corporation of Kenya

2. Kenya at a Glance Social: Government type: Democratic Rep.
(Coalition Government)
Size: 582,646 sq. km
Religion: Christian 78%,
Muslim10% others 12%
Capital City: Nairobi
Main seaport: Mombasa
National language: Kiswahili
Official language: English
Economic:
Population: million (2008)
Currency: (KSh.)
GDP Growth Rate: 7.1% (2007); 1.7% (2008)
Major GDP earners: Tourism, tea, horticulture, Coffee

3. Kenya Sedimentary Basins
Area
Km2
Wells
Drilled
Approx.
Sediment
thickness
Lamu
132,770 17
12,000m
Mandera
51,920 2
10,000m
Anza
94,220 11
Tertiary Rift
38,904
4,000m
Total wells drilled 32

4. Geophysical Database Existing Data 2D Seismic: 73,389 km
3D seismic: 820 sq km
Aeromag: >268,000 km
Gravity : >12,313 km
Data Digitization Project ongoing

5. Acreage Status
BLOCK LEASE STATUS:
CNOOC 2 Blocks (9, L2)
Origin Energy 1 Block (L8)
Flow Energy 1 Block (L6)
Camec Kenya 1 Block (11)
Africa Oil Corp. 2 Blocks (10A,10BB)
Vangold Resources 2 Blocks (3A, 3B)
EAX 2 Blocks (1, L17/18)
Lion Petroleum 1 Block (2B)
Sohi Gas Lamu 1 Block (L4)
Sohi Gas Dodori 1 Block (L13)
Platform Resources 2 Blocks (12A, 13T)
Anadarko Petroleum 5 Blocks (L5, L7, L11A, L11B, L12)
Centric Energy 1 Block 10BA
Total No. of Blocks Leased 22, Total No. of Operating Companies 13

6. Oil & Gas Shows Well Year Operator TD Result Pandangua-1 1960 BP-Shell
Upper Eocene
DST 12.7MSCF/D (C1-C2)
Dodori-1
1964
Palaeocene
DST 3.1MSCF/D (C1-C5)
Pate-1
1971
Eocene
Kick, flowed wet gas (C1-C4)
Kipini-1
Campanian-Maastrichtian
Wet gas shows (C1-C5)
Simba-1
1978
Total
Campanian
Dry
Maridadi-1
1982
Cities Services
Middle Eocene
Oil & gas (C1-C5) shows
Kofia-1
1985
Union Oil
Maastrichtian
Oil & Gas (C1-nC4) shows

7. Block L8 (Origin Energy)
Acquisition of 900 sq km of the first ever 3D in Kenya completed in Dec. 2009
Data being interpreted to identify a drilling location

8. Block L17/L18 (EAX)
Acquisition of 410 km shallow water -transition zone 2D seismics currently underway
Specially-adapted boat to acquire data in as shallow as 2m water depths
Part of the Lamu Basin with high potential for oil and gas (Pemba island oil seeps just to the south and Tanzania Songo Songo Gas field further south)

9. Blocks L4 & L13 (SOHI)
Seismic acquisition planned for later part of 2010
Pate-1 well in Block L-4 kicked gas thus blocks have huge potential for gas discovery

10. Lamu Deep Offshore (Anadarko Petroleum)
Acquisition of 5000 km of 2D seismic data to commence in April 2010
Lamu continental margin wells have encountered oil shows
Anadarko hopes to undo the negative publicity resulting from the Pomboo well drilled by Woodside

11. Block 1 (EAX)
Block in Mandera Basin which has the only known oil seep in Kenya (Tarbaj oil seep)
Mandera Basin is an extension of Ogaden Basin in Ethiopia (with Calub & Hilala Gas discoveries being developed by Petronas)
1276 km of 2D seismics to commence in Q2 2010

12. Block 9 (CNOOC)
Drilling Bogal-1-1 Well by CNOOC recently terminated at depth of 5054m
Well logging and evaluation currently ongoing
Anza Basin comparable to the South Sudan Rifts with proven production

13. Block 10A (Africa Oil Corp.)
Acquisition of 750 km onshore 2D Seismics to commence Q3 2010
Block in Anza Basin, has 3 wells drilled, one well had significant oil shows
Anza Basin is the southern termination of the Central African Rif System CARS, associated with major oil fields

14. Block 10BB (Africa Oil Corp.)
Acquisition of 600 km of 2D seismic to
commence in may 2010
Block is in Tertiary Rift Basin, comparable to the Albertine Basin in Uganda (recent discoveries)
Loperot-1 well in the block encountered very significant oil shows with minor amounts recovered by DST

15. Petroleum (Exploration & Production) Act, 1986
The Petroleum Act provides legal framework and regulates the negotiation of Production Sharing Contracts (PSC) with oil companies.
The PSC’s are subject to negotiations and are governed by:
The Petroleum Act, Cap 308, 1986
The petroleum (expl. & Prod.) Regulations
The income tax (amendments) Act
Environmental management & Coordination Act 2000 – NEMA
Work programme - Negotiable
Exploration Period - Negotiable, (typically 3,2,2)
Acreage surrender - Negotiable, (typically 25%)
Surface fees - Negotiable, (typically 3, 5, 8 USD/sq Km)
Training fees - Negotiable
Dev. & Prod. Period - Negotiable (typically 25 years)
Govt participation - Negotiable (typically 15%)

16. Thank you and
welcome to Kenya