Tweet
Business Daily Africa, Kenya
April 13 2008
Nairobi raises its profile as new oil hunter arrives
Written by Jim Onyango
Kenya has sunk 40 oil wells-all of which are dry. The MV Chikyu was
used in prospecting for oil off the coast of Lamu, but did not come
up with anything.
April 14, 2008: Nairobi's profile as a regional exploration hub moved
a notch higher with the arrival of yet another international oil
miner, Vangold.
The development comes despite that fact that no oil has been
discovered in Kenya compared with neighbouring Uganda and Tanzania,
which have struck oil and gas respectively.
Vangold, a Canadian firm, is exploring for oil in Rwanda and Uganda
but has chosen to manage its operations from Nairobi citing better
financial services sector and infrastructure.
Dal Brynelsen, the President and CEO of Vangold's oil and gas
interests in Kenya, Rwanda and Armenia, said the company had
successfully opened offices in Yerevan and Nairobi to support its
operations in Armenia, Kenya and Rwanda.
`These offices have been staffed with excellent technical people with
the help of consultants in the UK and Canada. The three properties
cover 43,000 sq kms and have exhibited excellent potential for
hydrocarbons,' he said.
Kenya has a more advanced financial and telecommunications
infrastructure that is becoming the centre of attraction for
financiers of oil and gas exploration such as the Canada based
Primary Capital Group, Capital Markets and Commodity Finance of
Germany, Upstream and Structured Finance-Energy Group Natixis of
France, Islamic Development Bank-Saudi Arabia and Afrexim Bank of
Egypt.
Oil explorers operating in Kenya include Australian listed companies
- Gippsland Offshore Petroleum, Origin Energy, Woodside Energy and
East Africa Exploration that have been allocated on and off shore
Lamu basin.
Lundin Petroleum, China National Offshore Oil Company (CNOOC) and
Vangold are licensed to cover the Anza basin. Turkana Drilling
Company and Camex Company are exploring the Rift Valley's tertiary
basin for oil.
Concentration of head offices of international oil explorers in
Nairobi means that Nairobi will get a piece of millions of dollars
that these companies are expected spend on oil exploration in the
region. Besides, these companies are expected to broaden the labour
market by employing locals as well as improve liquidity of financial
institutions that will handle their money.
Nairobi's strategic location in the region puts Kenya in a better
position to rake in the petrodollars even if no oil is found within
its borders.
Despite intense activities by international oil explorers, Kenya is
yet to discover any oil reserves even after sinking over 40 wells in
the last ten years compared to Sudan which found massive oil stocks
after sinking 78 wells.
Woodside Energy which had partnered with Global Petroleum quit Kenya
last year after it failed to hit any hydrocarbons - the main components
of fossil fuels, which include petroleum, coal and natural gas.
Australian oil exploration company, Hardman Resources Ltd recently
discovered oil in neighbouring Uganda where commercial production
should start in 2009 with initial production of 6,000 to 10,000
barrels a day. Tanzania on the other hand has spotted natural gas.
Kenya has sunk 40 oil wells-all of which are dry, compared to Sudan
which found massive oil stocks after sinking 78 wells.
Woodside Energy which had partnered with Global Petroleum said its
offshore wells did not have hydrocarbons-the main components of
fossil fuels, which include petroleum, coal and natural gas.
Woodside has since left the country. But new entrants such as Lundin
petroleum have begun new search.
Francis Karanja, the lead exploration geologist for Vangold reports
of the existence of rocks in Anza basin that could yield oil.
`The prospects associated with Anza Graben in Block 3A acreage are
the most promising and will be given the first priority by Vangold
management. Two exploratory wells have been drilled in Block 3A,'
said Mr Karanja.
http://www.bdafrica.com/index.php?option=com_cont ent&task=view&id=6967&Itemid=5810
April 13 2008
Nairobi raises its profile as new oil hunter arrives
Written by Jim Onyango
Kenya has sunk 40 oil wells-all of which are dry. The MV Chikyu was
used in prospecting for oil off the coast of Lamu, but did not come
up with anything.
April 14, 2008: Nairobi's profile as a regional exploration hub moved
a notch higher with the arrival of yet another international oil
miner, Vangold.
The development comes despite that fact that no oil has been
discovered in Kenya compared with neighbouring Uganda and Tanzania,
which have struck oil and gas respectively.
Vangold, a Canadian firm, is exploring for oil in Rwanda and Uganda
but has chosen to manage its operations from Nairobi citing better
financial services sector and infrastructure.
Dal Brynelsen, the President and CEO of Vangold's oil and gas
interests in Kenya, Rwanda and Armenia, said the company had
successfully opened offices in Yerevan and Nairobi to support its
operations in Armenia, Kenya and Rwanda.
`These offices have been staffed with excellent technical people with
the help of consultants in the UK and Canada. The three properties
cover 43,000 sq kms and have exhibited excellent potential for
hydrocarbons,' he said.
Kenya has a more advanced financial and telecommunications
infrastructure that is becoming the centre of attraction for
financiers of oil and gas exploration such as the Canada based
Primary Capital Group, Capital Markets and Commodity Finance of
Germany, Upstream and Structured Finance-Energy Group Natixis of
France, Islamic Development Bank-Saudi Arabia and Afrexim Bank of
Egypt.
Oil explorers operating in Kenya include Australian listed companies
- Gippsland Offshore Petroleum, Origin Energy, Woodside Energy and
East Africa Exploration that have been allocated on and off shore
Lamu basin.
Lundin Petroleum, China National Offshore Oil Company (CNOOC) and
Vangold are licensed to cover the Anza basin. Turkana Drilling
Company and Camex Company are exploring the Rift Valley's tertiary
basin for oil.
Concentration of head offices of international oil explorers in
Nairobi means that Nairobi will get a piece of millions of dollars
that these companies are expected spend on oil exploration in the
region. Besides, these companies are expected to broaden the labour
market by employing locals as well as improve liquidity of financial
institutions that will handle their money.
Nairobi's strategic location in the region puts Kenya in a better
position to rake in the petrodollars even if no oil is found within
its borders.
Despite intense activities by international oil explorers, Kenya is
yet to discover any oil reserves even after sinking over 40 wells in
the last ten years compared to Sudan which found massive oil stocks
after sinking 78 wells.
Woodside Energy which had partnered with Global Petroleum quit Kenya
last year after it failed to hit any hydrocarbons - the main components
of fossil fuels, which include petroleum, coal and natural gas.
Australian oil exploration company, Hardman Resources Ltd recently
discovered oil in neighbouring Uganda where commercial production
should start in 2009 with initial production of 6,000 to 10,000
barrels a day. Tanzania on the other hand has spotted natural gas.
Kenya has sunk 40 oil wells-all of which are dry, compared to Sudan
which found massive oil stocks after sinking 78 wells.
Woodside Energy which had partnered with Global Petroleum said its
offshore wells did not have hydrocarbons-the main components of
fossil fuels, which include petroleum, coal and natural gas.
Woodside has since left the country. But new entrants such as Lundin
petroleum have begun new search.
Francis Karanja, the lead exploration geologist for Vangold reports
of the existence of rocks in Anza basin that could yield oil.
`The prospects associated with Anza Graben in Block 3A acreage are
the most promising and will be given the first priority by Vangold
management. Two exploratory wells have been drilled in Block 3A,'
said Mr Karanja.
http://www.bdafrica.com/index.php?option=com_cont ent&task=view&id=6967&Itemid=5810