Anxiety over oil find as drilling in Isiolo nears a close

With the drilling of Bogal-1-1 exploratory oil well in block 9 near Merti in Isiolo North District entering home stretch, anxiety is building up.

Kenyans are waiting for the government to make an announcement as to whether the well has crude oil or gas once China National Offshore Oil Corporation (CNOOC) finishes the work mid this month.

The firm started the $26 million exercise on October 28, 2009 and expects to drill to a depth of 5.5 kilometres.

Chief geologist John Omenge said the well has been sunk to a depth of five kilometres with work expected to end in mid April.

“CNOOC has done a lot of work in block 9 and the Minister for Energy Kiraitu Murungi will make an announcement about the outcome of drilling at an appropriate time as Kenyans have high expectations,” he said.

Oil firm Shell in 1991 got small quantities of good-quality oil in at Loperot in Turkana.

In 2006, Woodside Energy drilled an offshore well in Lamu which triggered misplaced activism among locals. The well was dry. The local community in Lamu in early 2006 demanded that baseline strategic environmental assessment (SEA) studies be conducted before drilling.

According to National Oil Corporation of Kenya (Nock), it will take six months for drill cuttings and cores among items recovered from the well to be tested scientifically to determine presence oil or gas.

“We have to be cautiously optimistic about discovering oil until it actually happens. A commercial discovery will enhance Kenya’s energy security,” said managing director Mwendia Nyaga.

He said two prospective horizons for hydrocarbons targeting  3,000 metres and 5,000 metres of Boghal will give better results by yielding more data to be used in future exploration work.

The well will increase Kenya’s drilled density to one in every 12,500 square kilometres of the country’s 400,000 square kilometres. 

Mr Kiraitu said the government wants to manage properly expectations and to give Kenyans maximum benefits of oil and gas resources if a commercial discovery is made.  

“Kenya would like to manage oil and gas resources in a manner that promises maximum benefits to modernise physical and social infrastructure,” he said.

According to Petroleum Focus Ltd, a consultancy firm, striking of oil in Kenya will not translate to creation of thousands of jobs because exploration and extraction is highly capital intensive.

“Although oil extraction is highly mechanised, there will be an influx of people to a place where a discovery is made leading to a strain on existing housing and other facilities,” said director George Wachira.

Land use issues are bound to increase in Kenya as the Energy Act does not provide for a mechanism of laying a claim and sharing proceeds if Kenya strikes commercial quantities of oil and gas.

Management and sharing of money from sale of crude oil would be contentious with government, local authorities and communities claiming a larger portion, saddling in exploration companies.

Lands surveyor Ibrahim Mwathane said it is prudent to enter current exploration commitments aware of attendant issues bound to arise if prospecting is successful.

“Land use and environment issues will be in focus as communities, local authorities and government try to maximise benefits,” said the former chairman of Institution of Surveyors of Kenya.

Under the current laws of Kenya, the government retains ownership rights to any land under which lies mineral wealth, a factor that could easily be misunderstood and contested.

Ownership of land by individuals is up to six feet underground. The law states that from that depth, it is the property of the government. Presence of minerals makes land a source of conflicts.