Tullow plans more drilling after new discoveries

An oil rig worker at Ngamia 3 in Turkana. Tullow Oil said its Etom-1 exploration well on Block 13T had encountered about 10 metres of oil. PHOTO | FILE

What you need to know:

  • The UK firm said its Etom-1 exploration well on Block 13T had encountered about 10 metres of oil, enough to warrant further drilling.
  • The firm said two other wells are expected to be drilled by the end of the year in Kerio Basin (Epir-1) and North Turkana (Engomo-1).

Explorer Tullow Oil says it plans to drill more wells in an expanded acreage over the next two years, spurred by a string of successes achieved in the northern Kenya blocks.

The UK firm said its Etom-1 exploration well on Block 13T had encountered about 10 metres of oil, enough to warrant further drilling.

“Based on this result the ongoing 550 square kilometre 3D seismic survey in the South Lokichar basin has been extended to cover a further 247sq km in this northern area, including several similar prospects which are scheduled to be drilled in 2015,” the company said.

Tullow Oil exploration director Angus McCoss said the company would now stop work on Etom-1 and move equipment to the new sites. Drilling of the first well is expected to take place next month.

“The next basin-opening test will be in the neighbouring Kerio Basin, with the Kodos-1 well expected to spud in early September,” said Mr McCoss in a statement.

The firm said two other wells are expected to be drilled by the end of the year in Kerio Basin (Epir-1) and North Turkana (Engomo-1).

Tullow jointly operates Blocks 10BB and 13T with Canadian firm Africa Oil Corporation. The two have equal proprietary ownership in both blocks.

Africa Oil chief executive Keith Hill said: “Our development activities are progressing in support of a Lokichar basin oil development project sanction at the end of 2015/early 2016. We have an exciting exploration portfolio in the new basin opening wells, of which we plan to drill 6 by the end of next year.”

Mr Hill said they expect the results from at least one of the wells to be similar to the previous findings.

“We are confident that our early successes will be repeated in at least one additional new basin as we move forward to develop the large reserves we have discovered to date,” he added.

The success of the two firms has encouraged other explorers to proceed with seismic studies and drilling of wells. Companies have also been raising funds to fund exploration on their blocks by selling stakes and shares.

The Energy ministry has revoked exploration licences for companies that have been slow on the job making licensees accelerate exploration programmes.

Cabinet secretary Davies Chirchir cancelled Vanoil Oil licence in February after the Canadian firm failed to do any work since it was granted a licence in 2007.

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