Gas explorer to sink second well on offshore block

• Energy minister Kiraitu Murungi said Apache Corporation had indicated it would likely drill a second well on the Block in late 2013.
• A consortium of companies led by Apache prospecting for oil and gas on the block announced on Monday that it had discovered about 52 metres of natural gas reserves on the Mbawa-1 — the first ever substantive hydrocarbon find for Kenya within its Indian Ocean territory.
• The deposit of natural gas was struck at a depth of 2,065 metres against a primary target of 3,275 metres. No trace of oil was found.
• Mr Murungi said drilling on Mbawa-1 well had now been suspended at a depth of 3,151 metres after explorers failed to intercept petroleum reserves in the lower secondary target.

A second well is set to be sunk on an offshore block where explorers discovered significant reserves of natural gas in an effort to establish the commercial viability of the reservoir.

Energy minister Kiraitu Murungi said Apache Corporation had indicated it would likely drill a second well on the Block in late 2013.

“The total amount of gas found is not sufficient in isolation to be commercial. We are, however, encouraged that a reservoir containing hydrocarbons has been found,” Mr Murungi told a media briefing in Nairobi Tuesday.

A consortium of companies led by Apache prospecting for oil and gas on the block announced on Monday that it had discovered about 52 metres of natural gas reserves on the Mbawa-1 — the first ever substantive hydrocarbon find for Kenya within its Indian Ocean territory.

READ: Kenya strikes offshore natural gas deposits

The deposit of natural gas was struck at a depth of 2,065 metres against a primary target of 3,275 metres. No trace of oil was found.

The minister, however, said a second well was likely to be sunk on the block following the discovery of hydrocarbons on the Mbawa-1 well.

“The next well to be drilled on the block will likely result into a bigger discovery because of the geological information gathered from Mbawa-1,” the minister said.

Block L8 is run as a joint venture led by America’s Apache Corporation that has a majority stake of 50 per cent.

The other partners are Origin Energy Limited (20 per cent), Tullow Kenya BV (15 per cent) and Pancontinental Oil and Gas (15 per cent).

Mr Murungi said drilling on Mbawa-1 well had now been suspended at a depth of 3,151 metres after explorers failed to intercept petroleum reserves in the lower secondary target.

“Apache has, therefore, stopped drilling at this depth and is currently carrying out wireline measurements on the lower part of the well to determine formation properties before plugging it,” Mr Murungi said.

Apache Corporation country director Tim Gilblom said the discovery of natural gas reserves on Mbawa-1 well offered an impetus for further exploration off the Kenyan coast.

“We had planned to drill for oil, but the fact that we have discovered hydrocarbon sands below the basin gives us hope of future success,” he said.

The discovery is also expected to trigger an exploration frenzy among other firms that hold rights for blocks within the offshore location.