Fresh hope for oil discovery after gas find

The discovery of “very high concentrations of natural gas” by a Chinese firm doing exploration in northern Kenya has raised hopes that the country could soon strike oil.

Optimistic but guarded reports from Boghal in Merti division of Isiolo district indicated that the China National Off-shore Oil Corporation had discovered the gas after drilling a depth of 4,600 metres.

High concentrations of gas normally indicate the presence of oil.

The news has had top officials in the ministry of Energy excited and could herald the major announcement forecast by Minister Kiraitu Murungi when he announced the start of drilling in October last year.

Ministry’s officials are said to have described the development at the Bhogal well as “very encouraging” and “positive” and plan to establish additional wells in the area.

The National Oil Corporation of Kenya announced last month that with 4456 metres drilled then, there had been no traces of oil or gas and the remaining 1100 metres would determine the success of the project.

“We have one month of waiting and hoping. We expect the depth to be covered by the end of March or mid-April. This means we need to continue crossing our fingers,” said NOCK managing director Mwendia Nyaga.

He said the fact that no hydrocarbons had been found in the upper layers raised hopes of discovery as it indicated the oil or gas had not escaped.

Oil has been discovered in Sudan, Uganda and Tanzania and Kenya is optimistic that it could soon join the league of oil-producing countries.

The Chinese have revived interest in oil exploration in Kenya, which had waned after 2006 when Woodside, an Australian firm, left after fruitless drilling in the Lamu area.

The Bhogal well is the 31st to be drilled in a series of fruitless explorations and the government maintains more wells would be sunk.

“In your lifetime, there could even be the 40th well. We believe there must be oil somewhere in Kenya. As much as easy oil is over, maybe there will be difficult oil in Kenya,” said Mr Nyaga.

Virtual scramble

The prospects of striking oil have resulted in a virtual scramble by international firms to either start drilling or conduct surveys to find out the chances of the existence of oil in parts of Kenya.

Vanoil Energy Ltd, a Canadian oil company, announced on Friday it plans to spend $4.8 million (Sh370 million) on a survey to map potential oil and gas deposits in North Eastern Province.

For a detailed report and analysis check The EastAfrican this week.