Markets & Finance
Kisumu oil estimated at 800m barrelsTuesday March 15 2016
Swala Energy, which in partnership with Tullow Oil is prospecting for oil and gas in the Nyanza basin, has estimated recoverable crude of up to 808 million barrels in the area.
According to a report dated February 2016, the area around Ahero in Kisumu, would produce most of the amount with the rest coming from around Kendu Bay in Homa Bay.
Swala Energy hired American-owned Gaffney, Cline & Associates — that consults on upstream and downstream gas and oil resources — to advise on the way forward and determine the possible discoveries from Block 12B which it owns.
In the joint venture for the block, Swala owns 50 per cent stake while Tullow Oil owns the rest and is also the operator of the exploration wells.
“The operator, Tullow Oil, has acquired 2D [two-dimensional] seismic, gravity and magnetic data, and performed geological studies in support of the commitment to drill a first exploration well,” said report prepared by the consultant.
The well is supposed to test the petroleum potential of one of the leads identified in the block through providing additional information.
Despite the potential of the area being more than 800 million barrels of oil, each prospective area has a different level of risk in terms of ability to yield oil.
“There is limited data available to constrain the estimates of prospectivity; however, several leads have been identified.
‘‘The key geological risk is the presence of a sedimentary basin with sufficient depth to have allowed the deposition and subsequent preservation of reservoirs and source rocks,” said Gaffney, Cline & Associates.
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