Oil explorer Zarara plans to drill Lamu block by March

Oil and gas extraction work at the Lamu block is expected to begin in March next year.

Geophysical surveys done by Zarara Oil and Gas Company in 2013 through a 400km stretch in Lamu East confirmed that the area had oil and gas.

The surveys were conducted in L4 and L13 blocks on Pate Island.

The company revealed that it intends to drill 102 wells to extract gas.

Addressing the public in Faza Town yesterday, Zarara County Manager Peter Nduru said Sh1.1 billion had already been spent on a seismic survey.

Mr Nduru, who visited Faza to hand over books worth Sh2.5 million as part of the company’s corporate social responsibility work, said the second phase of drilling wells will be more expensive.

“For a well to be drilled and completed, that’s a process which takes three phases and that alone costs Sh3 billion. Between 2013 and 2014 we were dealing with data processing and data interpretation. Indications show that there could be gas. Until drilling is done we cannot prove the quantity,’’ said Mr Nduru.

Mr Nduru said the company plans to begin drilling by March 2017. He said an environmental impact assessment had already been done and the report handed over to the National Environment and Management Authority.

Lamu County leaders welcomed the oil company's move and assured it of maximum cooperation.

For his part, Governor Issa Timamy urged investors in the project to ensure they sign a memorandum of understanding with the Lamu government on how the project will benefit the locals.

“We want constructive engagement. Before exploration begins we need to have an MOU to agree on [jobs for residents]," said Mr Timamy, adding that the company should say what educational skills residents need to have to get those jobs.

He urged the project investors to set aside for the county government a certain percentage of the revenue generated.

The government has given Zarara an 18-month license extension that expires in June 2017 for the two blocks.