Chinese explorers upbeat as drilling of oil well begins

China on Wednesday started drilling a well at Boghal, near Isiolo town — a region geologists believe contains hydrocarbons, the main components of fossil fuels, which include petroleum, coal and natural gas.

“Based on our post drilling tests, we are likely to discover oil,” said Mr Zhang Yuqing, the director general of China’s National Energy Administration “We will work hard to discover oil in Boghal as soon as possible.”

The Chinese oil explorer will spent about $26 million to drill the Boghal well.

The start of drilling in Isiolo is part of China’s exploration of Africa to feed its industrial sector hungry for natural resources such as oil and other natural resources.

Most African countries have welcomed China mostly because of its less stringent demands on human rights and democracy.

“We welcome China to do business with us. We hope the Chinese oil firm will help us to discover oil” said James Rege, the chairman of the Parliamentary Committee on Energy.

Beaming the exploration activities live from Isiolo via satellite video link, the Chinese government-controlled China National Offshore Oil Corporation (CNOOC) said in Nairobi that it had put machinery and its manpower at work to help Kenya strike oil as soon as possible and turn the country into an economic powerhouse in the region.

Oil and gas finds have buoyed African economies such as Nigeria, Libya and Angola.

Kenya threatens to topple the Sudan from the east African oil wealth chart with its anticipated discovery sometime in April but regional states such as Uganda and Tanzania have also gone steps ahead with the discovery of oil and natural gas respectively.

“I believe that CNOOC will help transform Kenya’s investment potential and competitiveness,’ said China’s ambassador to Kenya, Mr Deng Hongbo.

CNOOC is sinking a five-kilometre deep well — the deepest well ever drilled in Kenya —to possibly tap into Kenya’s oil reserves.

This is Kenya’s 32nd exploratory well, all the rest have turned dry.

Kenya is deepening its exploratory processes to catch up with neighbours like the Sudan, which is already reaping the benefits of oil wealth.

Uganda is preparing to start commercial production of up to one billion barrels a day in its mid-western district of Hoima.

Although Sudan’s case is the most advanced in eastern Africa, Kenya has made strides in recent years following the National Oil Corporation’s vigorous marketing of Kenya as a destination for exploration and getting sharing contracts.

The start of drilling works in Boghal has thrust Kenya into the exploration limelight again two years after Woodside Energy of Australia abandoned a well off the coast of Lamu.

“We are looking forward to great success in the drilling” said Mr Wu Guangqi, the executive director of CNOOC which signed two production sharing contracts with Kenya in 2006. “I believe we are going to discover oil in northern Kenya, God willing,” said Energy minister Kiraitu Murungi.

However the government has warned the country against early celebrations, saying the well was for exploration and that actual work may start next year if the drilling turned positive.

“We must be cautiously optimistic about discovering oil in the well,” said Mr Murungi. “I appeal for patience as the well is drilled and necessary scientific tests are carried out.”

The revelation of Kenya’s crude oil and natural gas potential was made in a 1993 world geological survey conducted by the United States Department of Interior.

The survey which sought to establish the stock of unidentified crude oil and natural gas in the world, established that Kenya’s coastal region has the potential for producing around 100 million barrels of crude oil and 600 billion cubic feet of natural gas.