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Oil companies to scale up drilling activity in 2014

Saturday January 04 2014

Oil majors exploring in Kenya are expected to increase their drilling activity this year with at least five new wells planned for the quarter to March.

Africa Oil Corporation is temporarily leaving the Bahasi after failing to encounter commercial natural gas in the exploration area based in northern Kenya with the hope of testing it in future.

The Canadian firm and joint venture partner Marathon Oil Corporation are now set to start drilling on Sala prospect, another well to be completed by the end of the first quarter of this year.

The average cost of sinking a well for crude oil and natural gas onshore in Kenya is $25 million. Africa Oil and other partners started drilling of the Bahasi well in Kenya and Tutule in Ethiopia in September 2013.

“While we are disappointed Bahasi and Tutule wells did not find commercial hydrocarbons, we look forward to aggressively pursuing other exploration opportunities,” said Africa Oil’s chief executive officer Keith Hill.


He said the firm has confidence in unlocking other productive areas, although exploration and development studies in South Lokichar basin in northwestern Kenya where oil has been discovered will be their focus.

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Africa Oil and Marathon each own 50 per cent share of area 9 north of Isiolo town in Kenya. Tullow Oil Plc has a 50 per cent stake Africa Oil, 30 per cent and Marathon 20 per cent  equity in the South Omo acreage in Ethiopia.

Data obtained from Bahasi and Tutule wells will be analysed to determine future exploration in the locality. The OGEC rig is being moved to Chew Bahir basin to drill Shimela prospect in the eastern part of South Omo area as Tutule well was dry.

Africa Oil and Tullow Oil Plc are set this year to jointly drill Ngamia West, Ekunyuk, Etom and Ekosowan wells in South Lokichar basin. Africa Oil recently raised $450 million to fund exploration activities until 2015.

This comes as Bowleven Plc and ERHC Energy with other companies are undertaking various work programmes in compliance with production sharing contracts for exploration signed with the Ministry of Energy.

Bowleven has completed airborne survey of onshore area 11B in northwestern Kenya.

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