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Fresh drilling lifts hope of striking oil in Kenya

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Workers at a site where a Chinese firm had been prospecting for oil deposits in Chelap in Isiolo District in August 2008. Photo/FILE

Workers at a site where a Chinese firm had been prospecting for oil deposits in Chelap in Isiolo District in August 2008. The Chinese National Offshore Oil Corporation has been prospecting for oil in Kenya’s arid north. Photo/FILE 

By KEN OPALA
Posted  Friday, March 13  2009 at  21:49

In Summary

  • The drilling, in August, will be carried out by the Chinese company CNOOC which has been prospecting for oil in Kenya’s arid north.
  • Should commercial quantities be found, it could take at least another five years before the oil can flow into the pipelines.
  • In the past 18 months, 14 exploration licenses have been awarded to 11 international companies – compared to only five in the past 48 years.

The drilling by the Chinese company in August is likely to give an indication on the quality and quantities available in the Marsabit area. Should commercial quantities be found, it could take at least another five years before the oil could flow into the pipelines.

Huge discoveries

On average, an exploratory well such the one planned in Marsabit costs $100 million (Sh7.8 billion) to drill, while a production well costs many times this figure.

Kenya has stepped up oil exploration following huge discoveries in neighbouring Uganda, which shares the same oil-latent rocks with Kenya.

The most hopeful of the four prospecting blocks, the 400,000 sq.km Tertiary Rift Basin, comprises Nyanza and parts of the Rift Valley. “We are looking at it seriously because its geology is the same (as Uganda’s),” said Mr Omenge.

In the past 18 months, 14 exploration licenses have been awarded to 11 international companies – compared to only five in the past 48 years.

Kenya, with a long history of exploration activities, appears the only country in the region yet to discover gas or oil. Uganda stumbled on substantial deposits in the western part, Tanzania is already mining gas while Rwanda has discovered methane gas around Lake Kivu.

Additional reporting by Benjamin Muindi

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Add a comment (20 comments so far)

  1. Submitted by nicoleaketch

    I cannot believe the misperception people have in this country about the oil exploration and the possible finds. Even if the oil is found now, it will take a while before we see any Kenyan oil flowing into our pumps and trust me the politicians now will definitely not be there.

    Posted  October 09, 2009 05:01 PM  
  2. Submitted by naliweliwalo

    I cannot believe the comments of people wishing that Kenya should not strike oil! Do you know how much local and foreign earnings would flow into our national coffers? Yes, there is corruption, but we are soon going to elect a new breed. Let us hope for oil, and export it to Uganda and TZ. We are obviously better of with oil than without it! Let us think positively sometimes!

    Posted  March 15, 2009 03:52 PM  
  3. Submitted by somoinaa

    Persons in our Military will attest this presence of oil in Northern Kenya from personal knowledge of the evidence. And our War Games have components for include full-scale defensive operations in the north from invasion by Ethiopia, Sudan, and Somalia. Because African Wars are proxy-resources conflicts, to exploit the Northern Resources demand a capacity to defending them - and hence the recent aggressive build-up of our Armoured Division, our Anti-tank Air Calvary capacity and robust Ground Support Air-wing, and strategic Combat interceptor Aircraft. Does the T-72 saga clarify now? Shut up and let us do our thing for you civilians!!

    Posted  March 15, 2009 08:54 AM  
  4. Submitted by NaturalSceptic

    Lets vote majimbo first, and include a referendum for each jimbo to decide whether to secede or remain Kenyan.

    Posted  March 15, 2009 04:30 AM  
  5. Submitted by petert

    Not time yet, we wont get oil while corrupt leadership is in power., wait and see. Till 2012 or later.

    Posted  March 15, 2009 12:23 AM  

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