Natural gas find raises hope of Kenya striking oil

The discovery of what has been termed “very high concentrations of natural gas” by a Chinese firm drilling for oil in northern Kenya has raised hopes that the country could soon strike oil and save on a product that accounts for nearly a fifth of the import bill.

Energy minister Kiraitu Murungi said China National Off-shore Oil Corporation (CNOOC) had discovered gas in Boghal well in Merti division of Isiolo district after drilling 5,085 metres.

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

“There are strong signs of a gas discovery. Give us one month to do the tests to ascertain whether there are commercial quantities,” Mr Murungi told a regional energy conference that opened in Nairobi on Tuesday.

CNOOC, which is working with other investors with rights to the Isiolo bloc—including Africa Oil, Lion Energy and China Petroleum Corporation, will conduct further tests and have ordered some specialised test equipment to survey the quantities.

“CNOOC and its partners are in the process of carrying out further tests to ascertain whether the identified gas in the four zones is available in commercial quantities. Kenyans are praying for a commercial discovery,” Mr Murungi told potential investors.

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.

The high concentrations of gas normally indicate the presence of oil.

A hydrocarbon discovery can be either oil or natural gas, and in some cases, can be oil accompanied by natural gas.

The Chinese began drilling last October and have revived interest in oil exploration in Kenya, which had waned after 2006 when Woodside, an Australian firm, left after fruitless drilling in the Lamu area.

The Bhogal well is the 32nd to be drilled in a series of fruitless explorations and the government maintains more wells would be sunk.

State owned National Oil Corporation (Nock) says there are re 22 leased blocks, with 13 different companies operating on some of them. Drilling is about to start.

Among them is in the acquisition of 900 square kilometres of three dimensional data by Origin Energy, which has already completed 3D seismic data in Block L8, Lamu Basin.

“The data is currently being interpreted to identify drillable sites on Mbawa prospect, after which drilling will begin,” said Mr Murungi.

Andarko—the second largest US independent natural gas producer has rights to five blocks across the four basinjs of the country.

Early this year, the US firm found found gas in deep water offshore in Rovuma basin in Mozambique, raising hopes that due to similarities in geology of Kenya’s deep water acreage to that of Mozambique, more exciting discoveries were under way should the US firm step up drilling in Kenya’s Coast.

Industry expert George Wachira said early discovery of gas would provide Kenya with ready market for the product.