Tag Archives: Northern Kenya

Tullow Oil, Africa Oil receive 1 year extension in block 10BB, 13T

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The Kenyan government has approved extension of the exploration license in blocks 10BB and 13T by one year following delays in acquisition of 3D seismic.

Following the approval exploration periods for block 10BB and 13T will expire in July 2017 and September 2017, respectively.

This year the partners in both blocks have acquired a 704 square kilometer 3D seismic program over the discoveries and prospects along the Basin Bounding Fault Play in the discovered basin in Northern Kenya.

Ongoing is a further 274 square kilometers to include Etom and the surrounding structures which was initiated following the positive results from the Etom-1 well. This expanded survey is expected to complete during the fourth quarter.

“The ongoing drilling in the discovered basin in Northern Kenya has been quite helpful in understanding the distribution of the best reservoir facies and will no doubt be enhanced by the ongoing 3D seismic survey which is to be completed by the end of 2014,” says Africa Oil CEO Keith Hill.

Other completed acquisitions include a 674 kilometer 2D seismic program in Block 12A which was completed in the first quarter as well as in Block 10BBwhere a 750 kilometer North Kerio Basin 2D seismic program was completed in the first quarter.

In 2015 the explorer partners plan to drill six new basin opening wells by mid-2016. Epir-1 (Block 10BB) will test the North Kerio Basin and Engomo-1 (Block 10BA) will test the North Turkana Basin; both wells will spud shortly.

In addition, wells are being planned at the North Samaki prospect (Block 10BA) in the North Turkana Basin, the Tausi prospect (Block 13T) in the North Lokichar Basin, the Kerio Valley Basin (Block 12A) and the Turkewll Basin (Block 13T).

“We are looking forward to the results of three new basin opening wells to be drilled in late 2014 and early 2015 which have the potential to unlock significant value in terms of new prospects and resources. Our goal is to open up at least one new basin and to move a significant number of barrels from prospective to contingent resources by the end of 2014 and into 2015 as we move the field development program forward,” concluded Hill.

Tullow Oil is the operator in both blocks 10BB and 13T with 50 percent withholding interest while Africa oil holds the remaining 50 percent interest in both blocks.

Taipan Resources Adjusts Estimated Prospective Resources on Kenya’s Block 1

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Taipan Resources has announced that an independent assessment of the Company’s prospective resources on Block 1, northern Kenya has been completed by RPS Energy in the United Kingdom raising the total gross aggregate mean prospective resources on Block 1 by 82 percent from the earlier estimated 715 MMbbls gross prospective resources to an estimated 1,303 MMbbls 1 oil (260 MMbbls Taipan working interest) .

According to the report dated October 15 2014, the largest identified feature is the El Wak lead with gross mean prospective resources of 728 MMbbls 1 (146 MMbbls Taipan working interest) with the high estimate of prospective resources for El Wak now being 1,911 MMbbls 1 (382 MMbbls net to Taipan).

“Due to the size of the structure and the presence of hydrocarbons in the area, indicated by an oil seep to the west at Tarbaj Hill, El Wak should prove to be an intriguing and attractive target to drill,” says Exploration Manager for Taipan Paul Logan.

A 290 km 2D seismic shoot, estimated to cost around $2m net to Taipan, is planned over the El Wak lead, a four-way dip closed structure at surface overlying 1200 sq km of gravity high, .before the end of the year.

Taipan holds a 20% working interest in Block 1 (5.497 million acres / 22,246 sq km) which is operated by East Africa Exploration (Kenya) Ltd, a subsidiary of Afren Plc with the latter having a two well commitment in the current exploration period in Block 1 with the first set for H2 2015.

The Geological Probability of Success of Aggregated Volume for any Hydrocarbon type = 27%.

Tullow Oil faces industrial action in Northern Kenya

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British explorer Tullow Oil has said it has been dealing with a limited industrial action in Northern Kenya where it is currently exploring for oil and gas.

“Negotiations between the county and central government representatives, workers’ representatives, Tullow and its supplier regarding the limited industrial action in Northern Kenya have concluded successfully. The small number of workers affected are now returning to work,” Tullow said in an updated holding statement.

Although the company did not name the affected sites Tullow Oil it is believed to have occurred in Turkana where the company has interests in three blocks including Block 10BA, Block 10BB and Block 13T.

According to Reuters Turkana governor Josphat Nanok has admitted that the company had faced unrests in his county and some employees and contractors of Tullow have been moved out of the drilling site, and some of them have been taken to Nairobi for safety.

“I was informed that there was unrest after employees contracted by Tullow expressed their grievances,” Nanok is quoted by Reuters.

Among work ongoing in Kenya and which could have been affected by the industrial action include the drilling of Ekosowan-1 which spud Sept 2014, drilling of Kodos-1 to test Kerio Central sub-basin in Sept 2014, drilling of Epir-1 to test Kerio North sub-basin in Q4 2014, drilling of Engomo-1 to test Turkana NW sub-basin in Q4 2014 and the five more sub-basins to be tested.

This is not the first time that the company has faced unrests in Northern Kenya as in 2013 workers went on strike to protest over alleged harassment, low wages and lack of insurance cover.

Africa Oilfield Logistics Ltd seeks to fully acquire Ardan Logistics Kenya Limited

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Africa Oilfield Logistics Ltd has announced that the Board has decided to exercise the call option granted to it pursuant to the framework and option agreement announced on 28 March 2014 to acquire the entire issued share capital of Ardan Logistics Kenya Limited.

Exercise of the Call Option constitutes a reverse takeover under the AIM Rules and is therefore conditional, on shareholder approval which will be sought at a general meeting to be held on 22 October 2014.

At the General Meeting, shareholder approval will also be sought to change the Company’s name to “Atlas Development & Support Services Limited” and to make certain amendments to the Company’s articles of incorporation.

Africa Oilfield logistics has also announced the resignations of Mr Phil Edmonds and Mr Andrew Burns from the board – with Mr Ian Mann taking up the position of Chairman – together with the appointments of Mr Lachlan Monro as Chief Operating Officer and Mr Barry Lobel as Chief Financial Officer, with immediate effect.

“The acquisition of the entirety of Ardan’s operations is the next step in the Company’s objective of becoming the leading professional, efficient and profitable turn-key development and support services group in sub-Saharan Africa.  Under the new branding of “Atlas Development & Support Services”, we intend to take a joined-up approach to the expansion and delivery of our industry-leading services, extending the current contract base, new business pipeline and geographic reach of operations and further enhancing the revenue generation of the Group,” says Chief Executive Officer of Africa Oilfield Carl Esprey.

A fortnight ago  Africa Oilfield Logistics Ltd has announced that Ardan Risk & Support Services had entered into a 15 year lease over a sizeable land plot in Northern Kenya to be used for warehousing, fuel distribution, cold storage and fleet maintenance.

Africa Oilfield Logistics Limited to Establish Logistics Hub in Northern Kenya

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African focussed support services and logistics company Africa Oilfield Logistics Ltd has announced that Ardan Risk & Support Services the Company’s primary investment, has entered into a 15 year lease over a sizeable land plot in Northern Kenya, which will be used for warehousing, fuel distribution, cold storage and fleet maintenance.

This land Ardan says will be developed into the first of several planned logistics hubs and will support Ardan’s Technical Division as well as its expanding operations in Northern Kenya centered on the rapidly growing oil exploration and production industry in the region.

“Establishing a logistics hub in the burgeoning energy and natural resource destination of Northern Kenya will be a key differential for our business over the coming years,” said Chief Executive Officer of Africa Oilfield Carl Esprey.

In addition to the lease, negotiations are ongoing for an option over a further 25 acres of land in the vicinity to further support the Company’s long term regional expansion plans.

“The development of warehouses and infrastructure for fuel distribution, cold storage and fleet maintenance will enable us to meet the needs of companies in the region, and in time, we will also be able to offer warehouse space directly to our clients on a lease basis creating an additional revenue stream,” he concluded.

East Africa’s oil pipeline consultant bid to be advertised by July

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The Kenya, Uganda, South Sudan oil pipeline consultancy bid advertisement is expected   to be out in the next two to three weeks according to Kenya’s ministry of energy.

The pipeline that will stretch from the Hoima refinery in Uganda through Northern Kenya to the Kenyan coast will seek a single consultant as the East African states seek to ensure same quality and a single supervisor.

Uganda is expected to produce about 60,000 barrels a day once the Hoima refinery is fully functional half of which will be used internally and the rest exported through the pipeline.

South Sudan oil which will join the pipeline at Isiolo as per the earlier agreement signed in August 2012 was to transport between 700,000 barrels to 1 million.

The production has since however dropped significantly to just about 200,000 barrels following a civil war that has rocked the country since December 2013.

Initially Kenya and South Sudan were to construct a 2000 kilometer oil pipeline together at a cost of $3 billion with the works having set to begin in June 2013.

“The three states want to procure one supervisor for the entire pipeline to ensure uniformity,” Joseph Njoroge, the Energy and Petroleum Ministry’s principal secretary, told reporters.

The sourcing of a single consultant and transaction adviser was approved early last month by the five member states of the East African community and South Sudan.

In January Tullow and partners announced they had agreed with the government of Kenya to commence development studies for an oil pipeline with the development plans expected late next year.

The entire pipeline is expected to be 1380 kilometers in length and was one of the initial proposals for the project with the other being a pipeline through Nairobi to Mombasa with a length of 1300 kilometers and lastly another through Tanzania that would have been covering a total of 1950 kilometers.

The current option was preferred as it would result to shared burden as it would be a joint venture among the three countries.

The project expected to be sanctioned by 2016.

Tullow Oil loss of Kenya’s Block 10 adds to Kshs. 38.4 billion group profit dip

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British explorer Tullow Oil which held the license to exploration Block 10 in Northern Kenya’s Marsabit county has booked a 6.8 billion shilling loss after losing the expired permit.

Block 10 which was licensed to tullow and its partner African Oil which had 30 percent stake saw Tullow’s loss add to a total of 21 billion shillings that the group lost putting in consideration to expenditure and changes to future work programmes.

“The Group has written off $280 million (Sh21 billion) in relation to prior years expenditure and fair value adjustments as a result of licence relinquishment and changes to future work programmes. These included write-offs in Kenya ($79 million) (Sh6.8 billion) due to the relinquishment of Block 10A,” Tullow said in its annual report.

The explorer has however said it will drill another 40 exploratory wells  in 2014/15 even as Tullow Kenya manager said that the company could still bid for the license which is now in the government’s hands while its partner African Oil has forsaken its interest in the area.

“The partnership has elected not to continue into the next exploration phase in Block 10A in Kenya and the previously planned test of the Paipai well has been cancelled due to concerns over economic viability,” Africa Oil was quoted by Business daily.

In total Tullow Oil Plc profits dipped from 57 billion in 2012 to just 18.66 billion shillings a drop of over 60 percent.

The British firm did not indicate how much money it will spend in Kenya, but said that it has set aside $1 billion (Sh87 billion) for exploration in Mauritania, Norway, Kenya and Ethiopia and Guinea.

 

Tullow Oil opens community resource offices in northern Kenya

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British explorer has opened community resource offices in northern Kenya to encourage dialogue and partnerships with communities in the area where it has been prospecting oil.

“Tullow community resource offices in Northern Kenya now open, reinforcing our partnerships with host communities,” the company posted on its twitter handle.

According to the company the offices will help foster relations with the communities after growing tensions in the last few months that culminated in protests by the Turkana community who accused the company of not creating employment opportunities to its people.

This led to a halt in exploration activities at Twiga South-1, Ngamia-1 and Etuko-1 sites only to resume operations following dialogue with Turkana elders.

In a statement thereafter the company said it considered relationships with the local communities extremely seriously and the decision to suspend exploration and appraisal operations was taken to prevent further escalation of the demonstrations while discussions to resolve this issue for the long term are ongoing.

“The company is fully committed to utilizing as many local workers and local services as possible and currently employs over 800 people from the Turkana region out of the 1,400 people currently employed on Tullow’s Kenyan operations,” read a statement from the company.

This new move could be then a move in the right direction to create better relationships with the Turkana and other neighboring communities.