Failure to strike gas opens door to new opportunities

Indications are that the Isiolo well, which is nearly five kilometres deep, will not yield commercial quantities of natural gas after all.

As much as Sh2 billion of risk capital has been sunk into the venture.

It is painful when an oil and gas explorer winds up an operation following failed drilling.

One fact has, however, been established; that there exists a likelihood of natural gas in commercial quantities somewhere in the vicinity of Isiolo.

The question is: who will be the next in line to invest in another well in the vicinity after China National Offshore Oil Corporation (CNOOC) and its partners have abandoned their unsuccessful venture?

The reality of oil exploration is that proof of the presence of hydrocarbons is via drilling to the hydrocarbon reservoir.

There is no short-cut to this critical manoeuvre.

Some drilling, like in Uganda, will be shallow and not very expensive while others, like Isiolo, will be deep and expensive.

Attention seems to be shifting to Turkana and Keiyo regions as well as the coast.

So hope is not lost as time might deliver blessings to Kenya, like has happened with our neighbours.

However, Kenya needs to focus on what we have — and that is the transit opportunity presented by our neighbours who have already discovered either oil or gas.

Uganda and Southern Sudan will need transit infrastructure if their oil has to access outside markets.

Kenya should focus on exploiting this opportunity.

There is need for pipelines, ports, jetties and refineries to handle oil from the neighbouring countries.

Already, Kenya plans to link the gas fields of Tanzania to Mombasa and put the energy to good use.