Kenyan Oil in Turkana

After years and years of prospecting, Kenya finally made a breakthrough in March 2012; by striking oil in Turkana County in the north by British Tullow Oil.

Focus is now shifting to exploring its commercial viability. The discovery of the light, waxy oil was made in a half-way drilled Ngamia-1 exploration well, raising expectations that there could be huge reserves once the total depth of 2,700 metres is reached.

The well had been drilled to an initial depth of 1,041 metres and it will continue to a total depth of about 2,700 metres to explore for deeper potential in this prospect.

This is really good news to Kenya since China National Offshore Oil Corporation (CNOOC) drilled a 5,085 metres deep well in 2010 but did not find any oil forcing them to pull out.
The Turkana find was however beyond expectations even for the company and marks the start of a ‘multi-well exploratory drilling campaign’ which is set to be undertaken over the next three years.

he oil discovered has an American Petroleum Institute (API) gravity greater than 30, which is a measure of how heavy or light a petroleum liquid is compared to water.

If the commercial viability is determined, then it would take up to seven years before commercial production can commence. In addition, the government now plans to intensify the exploration by giving out more blocs to interested firms.

Industry player Patrick Obath said time was ripe to implement the Extractive Industries Transparency Initiative (EITI) which would clearly outline how monies from these activities would be used and help country avert the African-black gold ‘curse’. This is a very transparent way of accounting for the revenues that come out of extractions for not just oil but gold, diamond activity and even Tiomin,” Obath said.

The area where Tullow discovered oil deposits in Turkana South has been placed under tight security. The site called Ngamia 1 in Kalapata Location will now remain under permanent watch as more than 150 policemen were deployed to secure the area following a request by Tullow.

Local residents have expressed joy at the announcement of oil discovery in the area, saying it will help free them from poverty. It is actually a new beginning for the locals.

Petroleum Energy is central to the realisation of Vision 2030, and as we accelerate our efforts towards the attainment of the vision we are witnessing increased demand for the petroleum products. NOC was completing a feasibility study to develop Kenya’s second petroleum jetty in Mombasa to address the problem of product supply disruptions caused by delays in offloading petroleum cargo.

On the political front, pressure is mounting on the government to make public details of the contractual agreement it entered into with companies prospecting for oil in Turkana. Members of Parliament from the area say Kenyans need to know what the contracts entail and what the country stands to gain should commercially viable oil be found.

It has been alleged that some land and mining rights were sold by senior government officials and politically connected individuals at Sh3 billion with none of the proceeds going to the local community. At the centre of the controversy is four blocks among them Block 10BB where oil was discovered and which measures about 8,000 square kilometres. The Turkana County Council was the first to raise the red flag on Friday last week when it complained that the land in Ngamia 1 was sold without their consent and involvement.

Kenya is believed to have substantial quantities of minerals such as coal, Tiomin, goal and iron ore which if exploited have the potential to drive industrial development and enable the country to quickly realise the goals outlined in its development blueprint, Vision 2030.

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Source: VK/Capital