Africa Oil and joint venture partners to re-start drilling in Q4

What you need to know:

  • “In addition, the joint venture is planning an extensive water injection test programme in the fourth quarter of 2016 to collect data to optimise the field development plans,” it said.
  • Last Thursday, the Cabinet approved a plan to start producing crude oil, with a goal of reaching up to 4,000 barrels a day, as East Africa’s largest economy gears up to become an oil-producing country.
  • “The EOPS would utilise existing upstream wells and oil storage tanks to initially produce 2,000 barrels of oil per day [bopd] around mid-2017, subject to agreement with national and county governments,” it said.

Canada’s Africa Oil and its UK-based partner Tullow plan to restart drilling in October this year as the two explorers step up Kenya’s hunt for additional oil resources in Turkana County.

Africa Oil said Monday the first two wells are expected to be the Etete and Erut prospects in the South Lokichar basin.

“Tullow Oil, Maersk Oil, and Africa Oil (the “Joint Venture Partners”) plan to recommence drilling activities in the South Lokichar oil basin located in Blocks 10BB and 13T in Kenya in the fourth quarter of 2016 with an initial programme of four wells and the potential to extend this by a further four wells,” Africa Oil said in a statement.

It said it planned with its partners to make further appraisal of the Ngamia and Amosing fields to target un-drilled sections, with an aim of extending the size of the existing discoveries.

“In addition, the joint venture is planning an extensive water injection test programme in the fourth quarter of 2016 to collect data to optimise the field development plans,” it said.

Last Thursday, the Cabinet approved a plan to start producing crude oil, with a goal of reaching up to 4,000 barrels a day, as East Africa’s largest economy gears up to become an oil-producing country.

As part of the plan, infrastructure will be upgraded to allow trucks to ferry the oil to the Mombasa Port.

Africa Oil confirmed in the statement, that the Early Oil Pilot Scheme (EOPS) transporting oil from South Lokichar to Mombasa, utilising road or a combination of road and rail, is being assessed to provide technical and non-technical information that will assist in full field development planning.

“The EOPS would utilise existing upstream wells and oil storage tanks to initially produce 2,000 barrels of oil per day [bopd] around mid-2017, subject to agreement with national and county governments,” it said.

It also said it is committed to plans to run a crude oil pipeline from South Lokichar to the port of Lamu saying that the joint venture partners have signed a memorandum of understanding with the government which confirms the intent to implement the project.

“The pipeline Joint Development Agreement is currently being finalised and is expected to be signed in the third quarter of 2016,” it said.

Standalone pipeline

Kenya is eyeing to complete its own Sh210 billion ($2.1 billion), 891-km long pipeline between Lokichar and Lamu by 2021.

This follows its failure to clinch a deal with Uganda which chose to construct a pipeline through Tanzania.

Africa Oil on Monday said that the plans for the Kenya standalone pipeline will however take into consideration the potential to accommodate the transportation of additional oil resource from bordering East Africa countries.

A study on the same is expected to start next year, the firm said.

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