Chinese firm begins tests on Isiolo gas pits

By the time of abandoning the search for oil, CNOOC Africa had drilled a total of 5.08 kilometres out of the expected 5.56 kilometres. Photo/FILE

Kenya’s hopes of striking oil in Isiolo have been dashed with the Chinese firm prospecting in the region now shifting its activities to establishing whether the natural gas discovered there two months ago can be commercially exploited.

The China National Offshore Oil Corporation (CNOOC) is expected to bring in equipment this week that will help reopen the Boghal well in Merti division to ascertain the quantities and quality of the gas found there.

“The equipment will be used to test whether the gas deposits are of commercial value,” said Patrick Nyoike, permanent secretary for Ministry of Energy.

Mr. Nyoike also indicated that explosive used for opening up wells had arrived in the country.

The explosives will be used to carry out what is referred to as ‘dream test’ to blow out mud which have blocked the wells during the search for oil.

He said the outcome of the tests would be known in a month’s time.

By the time of abandoning the search for oil, CNOOC Africa had drilled a total of 5.08 kilometres out of the expected 5.56 kilometres.

The drilling was called off after internal temperatures rose to over 1,000 degree Celsius effectively making it impossible to find any oil deposits.

With the test for natural gas, the government is optimistic that it will join the other regional countries such as Tanzania which have discovered gas of sufficient economic quantity.

Similarly, Uganda has struck oil and it’s in the process of pumping out for sale.

“Following evaluation of the test results, the JV partners will meet to discuss the plan for potential Bogal 1-1- Well appraisal work in addition to exploring marketing scenarios to best commercialise gas in East Africa,” said Mr Keith Hill, the chief executive officer of Africa Oil, CNOOC’s partner in the search.

The discovery of what had been termed as “very high concentrations of natural gas” had raised hopes that the country could soon strike oil and save on a product that accounts for nearly a fifth of the import bill.

The well is within Block 9 in the Anza Basin of northern Kenya.

Industry experts say an early discovery of gas would provide Kenya with a ready market for the product within the economy and that it would require less capital and time than oil to exploit.

Whereas failure to strike oil deposits is likely to affect the ongoing drive to prospect for oil, the potential availability of natural gas will sustain the interest of exploration in the country, which had started waning especially after 2006, when Woodside of Australia quit the search after hitting a dry well in the Lamu area.

In 2006 the Ministry of Energy demarcated new exploration blocks which have created interest in the exploration across the country.

Since then, several licenses have been awarded by the National Fossil Fuels Advisory Committee (NFFAC), an inter-ministerial committee created that year to take over the responsibility of negotiating acreage with prospectors.

The companies granted licenses included East Africa Oil Exploration of the United Kingdom, Lundin Petroleum (now Africa Oil), Vangold Resources and Turkana Oil Drilling.

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