Tuesday, December 17, 2013

Exact amount of oil to be known in 2014

PHOTO | FILE An oil rig at Ngamia 1, 25km from Lokichar in Turkana County on March 27, 2012. Kenyans will know the exact quantities of oil deposits at two of Tullow Oil’s wells in the first quarter of 2014.

PHOTO | FILE An oil rig at Ngamia 1, 25km from Lokichar in Turkana County on March 27, 2012. Kenyans will know the exact quantities of oil deposits at two of Tullow Oil’s wells in the first quarter of 2014.   NATION MEDIA GROUP

By IMMACULATE KARAMBU
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Kenyans will know the exact quantities of oil deposits at two of Tullow Oil’s wells in the first quarter of 2014.

The British firm recently announced oil discoveries at the Etuko-1 and Ekales-1 wells located in the Northern part of the country.

In a statement, Tullow said that plans are under way to carry out tests at the wells to determine the exact quantities of the deposits, with results expected early next year.

“Following the discoveries made at Etuko-1 and Ekales-1, preparations are underway to flow test the wells with results expected early in the first quarter of 2014,” Tullow said in its latest exploration update for East Africa.

Flow test results are important as they give direction in the country’s progress towards becoming an oil producer.

While announcing the Etuko-1 discovery, Tullow, in its half-year report for 2013, indicated that Kenya’s oil resources that have been discovered so far have already met the minimum threshold for development.

The British firm estimates the local oil resources to be in excess of 300 million barrels.

With the expected test flow results, this figure could be revised upwards.

Geologists argue that Kenya’s geological structure is similar to that of Uganda, which has already struck oil in commercially viable quantities.

SIMILAR TO UGANDA'S

Since the first oil discovery in Kenya made by Tullow Oil in March 2012 at the Ngamia-1 well located in Block 10BB, a series of other discoveries have been made both for oil and natural gas deposits.

However, the commercial viability of the latter is yet to be established.

Tullow has announced plans to commence drilling of a new exploration well, Ewoi-1 by the end of this year.

The company has so far drilled six wells in the blocks it operates with Africa Oil corporation out of which four have led to discoveries of oil.

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