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Pancontinental identifies elephant potential offshore Namibia

23 Jul 2014 -

Australia’s Pancontinental Oil and Gas NL has identified billion barrel plus potential off the coast of Namibia from early assessment of 2D and 3D seismic surveys acquired there earlier this year.

Pancontinental, an early mover offshore Namibia, said it has seen increasingly encouraging results from early assessment of the 3D and 2D seismic surveys in the EL 0037 permit.

The company said initial mapping has confirmed at least four main, large and robust prospects in the 3D area – the Albatross, Gannett, Petrel and Seagull Prospects.

Initial mapping suggests the Albatross Prospect in the 3D area covers approximately 300 sq km and assessed to have potential to contain 422 Million Barrels of oil (gross unrisked mean), or 1.093 Billion Barrels of oil (P10 basis).

Albatross is interpreted to be horizontally and vertically close to the “fairway” of mature oil source rocks identified by Pancontinental and subsequently verified in the Wingat-1 well drilled in the adjacent exploration licence area. Good oil-prone and oil-mature source rocks were seen, and live oil was recovered from Wingat-1 in 2013.

A number of other Prospects and Leads have been identified in addition to Albatross in the very large EL 0037 area of some 17,000 sq km. Other prospects and leads are currently assessed to have potential to hold gross mean risked resources exceeding 150 Million Barrels of Oil.

Processing of the 2D and 3D seismic survey data continues to progress, with “fast track” processed results anticipated to be available mid- to late-August and fully processed data will be available in September 2014. The results of complete mapping from the fully processed data are expected in October 2014.

Pancontinental said that following full mapping, the Prospects will be examined for drilling potential and the EL0037 joint venture will then be in a position to determine drilling sites and dates.

As part of its commitment under the late-2013 farmin agreement with Pancontinental, Tullow Oil has carried out a 3,000 sq km 3D seismic survey and a 1,000 line km 2D survey at its sole cost. Pancontinental has retained a 30% free-carried interest through the surveys, at no cost to Pancontinental.

To maintain its 65% farmin interest, Tullow must fully free-carry Pancontinental’s 30% interest through one exploration well.

https://www.pesa.com.au/news/pancontinental-identifies-elephant-potential-offshore-namibia
 
Kenyan petroleum law faces further delays, exposing investors to risk of bribe demands and unclear legislative framework

Published: 7/24/2014

Kenya's cabinet secretary for energy and petroleum, Davis Chirchir, said on 1 July a revised petroleum law would be presented to parliament for approval by October.

IHS perspective

Significance - Despite the new timeline for the passage of the new Kenyan petroleum law, further delays to the adoption of a clear regulatory and legislative framework are likely due to political disputes and preoccupations.

Implications - The eventual passage of the petroleum law does not preclude the introduction of a capital gains tax on concession sales at a later stage, while the national oil company is likely to take a free carried stake in concessions.

Outlook - Further delays to the petroleum legislation, which are likely, will expose investors to demands for large bribes and high risk of contract cancellation for investors in breach of license agreements.

Investors have increasingly pressured the Kenyan government to implement a clear fiscal and contractual regime and to open up new acreage for investment. The schedule for proposed legislation was first promised in late 2012 and, despite the new deadline, is likely to face further delays due to internal political disputes and external political pressures on the ruling Jubilee Coalition of President Uhuru Kenyatta. This will delay new licensing in oil and gas, as well as investment in existing license areas. Parallel legislative processes for mining and for natural resource revenue sharing are also likely to delay the passage of the petroleum law. On 18 July, the government announced that parliament was to introduce a new mining law aimed at giving government ownership of mineral resources and enhancing transparency in the sector. The Energy Bill, which has specific provisions for the oil and gas sector, is also due for passage through parliament, but faces further delays.

The sector is currently governed by the Petroleum (Exploration and Production) Act 1986 and the related regulations and model production-sharing contract; the Income Tax Act 2012 and relevant Finance Acts; and the 2010 constitution.

Further delays to petroleum law

Amendments to Kenya's Petroleum (Exploration and Production) Act 1986 were tabled in October 2013; however, progress has been delayed. Parallel to the review of the Petroleum Act, the Energy Bill was produced, with a first draft appearing in March 2013; it is now in its fifth iteration. The Energy Bill covers upstream elements also covered by the Petroleum Act – resource management, granting of licences, operations and oversight of the sector. It also covers extraneous issues such as revenue management. A Mining Bill has also been in development since 2013, an area also covered by the Energy Bill.

More recently, the minister has promised a new Petroleum Bill to be presented to parliament this month or next and passed by October. The Ministry of Petroleum, in a recent statement, said it has been in preparation since March this year, led by the Inter-Ministerial Technical Committee.

Legislative delays have been caused by several factors. First, central leadership at the highest level has been distracted or preoccupied. Since taking office in April 2013, President Uhuru Kenyatta and Vice-President William Ruto have primarily focused on avoiding an appearance at the International Criminal Court, where they face charges for alleged crimes against humanity arising from the post-election violence of 2007. Attention on petroleum-sector reform has been further distracted by further terrorist attacks since the attack on Westgate Mall in Nairobi in September 2013 and the Lamu County attacks in June and July 2014.

Second, the ruling coalition of Kenyatta and Ruto has been prone to internal rivalries. The coalition has brought together two different communities, Kenyatta’s Kikuyu and Ruto’s Kalenjin tribes. Power-sharing has been ineffective and has triggered disputes between the energy and petroleum and mining cabinet secretaries. The former, Davis Chirchir, supports Ruto’s faction, while the latter, Najib Balala, who, though from the Coast, is a Kenyatta loyalist and, according to IHS sources, is a confidant of the president. Both Kenyatta and Ruto’s ethnicity-based factions within the Jubilee Coalition are seeking control over government revenues from extractive sectors and disputes over revenue control are likely to further delay the petroleum legislation.

Outlook and implications

Though promised for this year, it is unlikely that new legislation will be ready in time to allow for new licensing. Cabinet Secretary Chirchir has stated that there are 15 new oil blocks to be allocated, drawn from relinquished acreage. Continued delay in clarifying procedures for awarding licences and clarifying the fiscal regime will require navigating informally, so exposing investors to possible demands for bribes from public officials.

The interim period will also expose investors to increased risk of contract renegotiation or cancellation, especially for investors aligned with certain political interests. In February 2014, Cabinet Secretary Chirchir revoked the licences held by Canada’s Vanoil Energy for Blocks 3A and 3B located in Garissa. Chirchir claimed Vanoil had failed to carry out basic work requirements in accordance with the production-sharing contract (PSC) it signed with the government in 2007. In June, the parliamentary Energy and Transport Committee confirmed the licence cancellation and claimed Vanoil was speculating with its licences, in violation of the PSC. In 2013, the ministry cancelled licences held by Pancontinental Oil & Gas NL, although the company has since successfully negotiated extensions to the PSC.

IHS sources say Vanoil was given four extensions before the licence was rescinded. Chirchir and Balala have both increased pressure on oil and gas and mining companies to meet basic work requirements, which has resulted in a number of work progress announcements by investors in 2014. Investors that do not meet requirements outlined in their PSCs will face high risk of licence cancellation, at least until the petroleum legislation is in place and clearer guidelines mitigate risk of arbitrary contract frustration. On 7 July, Vanoil said it would seek arbitration at the United Nations Commission on International Trade Law (UNCITRAL), claiming that the value of the blocks had increased after Africa Oil struck oil in the same Anza Basin.

Proposals drawn up by World Bank-funded consultants are likely to form the basis of any new legislation, but will not necessarily inform all aspects of it. The Finance Act 2014 removes the obligation to withhold tax on capital sales, which had been introduced the previous year. The introduction of a capital gains tax was specifically recommended by the World Bank consultants in 2013. This year’s Finance Act suggests that it may not be included in petroleum legislation. However, there is a regional trend (Mozambique, Uganda) for governments to apply a capital gains tax on sales of concessions by foreign investors, even if such transactions are carried out in offshore jurisdictions. IHS assesses that a capital gains tax could still be implemented at a later stage, especially when large transactions are carried out as part of farm-out agreements by existing investors.

The ministry is likely to continue to have a central role in the petroleum sector over licensing; however, oversight responsibility is more likely to be spread out among bodies. The National Fossil Fuel Advisory Committee (NAFFAC), an ad-hoc body, is likely to be formalised as recommended by the consultants and as contained in the Energy Bill. Oversight functions, however, are more likely to be split. The consultants’ recommendation had been for a compliance unit within the ministry, while the Energy Bill called for general oversight of the sector to be part of the mandate of an Energy Regulatory Commission. If both options are taken forward, there is likely to be competition between the ministry and the commission. This is likely to increase regulatory uncertainty as firms are stuck between the minister and commission.

http://www.ihs.com/products/global-insight/industry-economic-report.aspx?ID=1065991564
 
East Africa's new found wealth to bring regional transformation

Elayne Wangalwa
Last Updated: 25 July 2014|14:27 GMT

East Africa has emerged as a significant prospect for oil and gas that is set to fundamentally transform the regional economies.

East Africa's new found wealth to bring regional transformation

According to Standard Bank, the discoveries in Uganda, Kenya, South Sudan, Ethiopia, Tanzania and Mozambique have emerged as some of the most prolific oil and gas exploration spots in the region and in the world over the last 10 years.

“It really comes from the fact that it [East Africa] has been ignored for the last 40 years. The oil industry has been much more interesting in Russia or in the developed markets and really in Africa it looked at North and West Africa, so Nigeria, Algeria, Egypt, Libya, places like that but East Africa was perceived as a barren area,” Simon Ashby Rudd, global head of oil & gas at Standard Bank told CNBC Africa.

A survey by the United States has estimated that more gas lies off shores of Kenya, Tanzania and Mozambique than off Nigeria, Africa's biggest energy producer.

“Fist discoveries were really made in Uganda by the likes of Heritage and Tullow and then Mozambique where they found huge volumes of gas. In the last four years they have found almost 200 trillion cubic feet (Tcf) of gas which is equivalent to what they have discovered in Nigeria in 40 years. So East Africa is now on the radar,” Rudd noted.

“We are seeing more discoveries in Tanzania, more gas in Tanzania and more oil in Kenya, potentially Ethiopia and the industry [oil and gas] believe this is a start of a major development in this part of the world,”

East Africa's oil & gas discoveries to bring regional transformation

According to Standard Bank, recent oil & gas discoveries in East Africa will fundamentally transform the regional economies as the resources bring in new investment in other infrastructure.

The major challenges identified by organisations in the oil and gas industry are that East African countries not only lack infrastructure and technical expertise, they also lack distinctive oil and gas policies, while legislation of the sector is uncertain.

“The challenge now is about getting the regulatory environment right in order to encourage investment. These discoveries while they are world class discoveries, they are in isolated locations and the investment that is going to be required is going to substantial,” Rudd explained.

According to Rudd, getting the regulatory and commercial environment right now and making sure that it is beneficial to all stakeholders, that is, the country, the economy of the local region and to the investors are critical components to ensuring the oil and gas industry in East Africa flourishes.

http://www.cnbcafrica.com/news/resources/2014/07/25/east-africa-oil-and-gas-industry/
 
Insecurity Killing Oil Investors Appetite

By James Waithaka

A pending energy law, rising insecurity and potential inability by oil companies to secure necessary funding could affect Kenya's quest to be an oil producer by 2017.

A report by Ecobank Research released last week estimates that Kenya's upstream oil segment - at exploration and drilling stage - will need $16 billion (Sh1.4 trillion) to finance operations over the next 36 months.

The middle Africa insight series on energy titled 'Key dynamics in Kenya's emerging upstream oil industry' says a revised petroleum law expected to be passed in Parliament by October is likely to introduce new levies to cater for community development.

In addition, insecurity is a major concern and will impact on investor appetite, while a simmering maritime border dispute with Somalia could affect offshore exploration.

"These dynamics make the next 18 months critical in the development of the Kenyan upstream sector," the report states.

Ecobank says the Sh1.4 trillion would go into projects related to the country's developing oil and gas sector. This includes drilling of more than 30 new wells, development of the Ngamia oil field by Tullow Oil Plc and its partner Africa Oil, construction of a crude oil pipeline from Lamu to Turkana, and completion of Lamu Port.

It says oil companies would be forced to sell portions of their oil blocks (farm-outs) to meet exploration and drilling commitments if fundraising becomes difficult.

"More importantly, it could delay the start-up of oil production by another one or two years," Ecobank says.

London-listed Tullow and Australia's Africa Oil are expected to submit a field development plan by 2015, and Kenya could become an oil producer in 2017 starting off with 100,000 barrels per day.

"Oil companies in Kenya are likely to drill almost 20 wells over the next 18 months and are likely to make more discoveries," the report projects.

Two laws - on energy and mining - are expected to redefine the extractives industry once passed into law. The Mining Bill awaits debate in Parliament while the Energy Bill - which dissects coal, petroleum and gas - is still pending.

The energy law will provide a framework for hydrocarbon revenue management. According to Ecobank, the law "possibly increase the government's take from oil operations and enforce more local content initiatives."

"Communities in the oil discovery areas have intensified demand for involvement in the industry, which is likely to provoke inclusion of community development levies in the new bill," the report reads in part.

The bank says Tullow Oil risks being "over-extended on borrowings" if it takes additional debt to develop its Kenya oilfields, but it is likely to attract valuations as high as $452 million (Sh39.23 billion) for a planned farm-out of a 10-15 per cent stake in its Lokichar basin blocks.

The Sunbird-1 discovery in June by UK's BG Group confirmed presence of offshore oil reserves, raising Kenya's oil potential onshore and offshore.

The country will play a pivotal role in the emerging East Africa oil and gas industry with the new export terminal at Lamu and crude oil pipeline

http://allafrica.com/stories/201407281895.html
 
Kenya Calls for Border Checks Amid Risk of Ebola Spread

By Henry Kibira

The Ebola Virus.

THE number of ebola cases in three West African countries as at July 23 stands at 1201, including 672 deaths. The revelation comes amid heightened fear that Kenya risks falling victim to the deadly disease that has rocked Liberia, Guinea, Sierra Leone and Nigeria.

A government circular sent out yesterday to county health directors has called for surveillance at all border points. "I am emailing you an important communiqué from the Ministry of Health addressing the increasing risk of Ebola Viral Disease that this country faces," reads the letter sent by the acting head of disease surveillance and response, O-tipo Shikanga.

A US doctor working with ebola patients in Liberia is among the lat- est victims of the deadly virus. This is according to an aid organisation, Samaritan's Purse, that is based in the country.

A Liberian man died on Sunday upon landing in Lagos. He is reported to have boarded the plane despite having a high fever that resulted in his vomiting aboard the aircraft.

Nigerian health officials are said to be taking precautions as other passengers in the plane that was carrying the passenger could "take the disease beyond Africa due to weak inspection and the fact that ebola's symptoms are similar to other diseases such as malaria and typhoid".

Shikanga has however sought to allay public fears of the attack, but cautioned that safety measures have to be stepped up to prevent any occurrence. "We are at risk and are not taking any chances," he said.

http://allafrica.com/stories/201407300557.html
 
Kenya’s first offshore discovery misses commercial threshold
August 5, 2014 by Samuel Kamau Mbote

The sunbird-1 well in Kenya’s offshore block L10A that which showed oil and gas samples did not register enough reserves to constitute a commercial discovery according to PTTEP one of the companies with interest on the block.

According to the company’s latest operating results PTTEP expects to write off this well in the third quarter of 2014.

According to Pancontinental that confirmed oil deposits in the well the gross oil column in the well was assessed to be 14m thick beneath a gross gas column of 29.6m in a reefal limestone reservoir in the Sunbird Miocene Pinnacle Reef in area L10A.

The confirmation was after months of analysis that verified the sunbird-1 well as the first ever oil discovery off the East African coast.

Despite the disappointment PTTEP says the findings will be valuable for future geological studies especially offshore where a number of companies are planning to sink more wells motivated by the sunbird prospect.

Recently Pancontinental oil and gas announced it is considering drilling a second well in the Kenyan block L10A where BG Group is the operator.

The Sunbird-1 prospect was an important finding as its results were the first proof of the presence a prospective oil system in the Lamu Basin offshore Kenya.

“The oil and gas have been geochemically typed in detail and the prospective source rocks have been dated and characterized for use in future exploration,” Pancontinental said in a statement while confirming the oil discovery in June.

Block L10A has 3 joint venture partners including BG Group which is the operator with 50 percent interest, PTTEP with 31.25 percent and Pancontinental oil and gas with 18.75 percent.

http://oilnewskenya.com/2014/08/05/kenyas-first-offshore-discovery-misses-commercial-threshold/
 
AziNam ups Namibian block stake
05 August 2014 13:20 GMT

Namibia-focused player AziNam has increased its footprint in the frontier African nation after taking an additional stake in an offshore block.
The company, backed by a Bermuda-based investment fund, is getting 10% more in blocks 2111B and 2211A, together known as the Guy block, from operator Eco (Atlantic) Oil & Gas.

The increase will take AziNam up to 30% alongside Eco on 60%, while state-owned National Petroleum Corp of Namibia (Namcor) holds 10%.

AziNam said on Tuesday it is “planning to progress with a major seismic acquisition programme shortly” off Namibia.

The company made a splash in the Namibian offshore scene in late 2012, when it bought up interests in 13 oil exploration blocks covering more than 67,000 square kilometres.

On Tuesday managing director David Sturt said: “The Namibian coastline continues to offer a significant frontier exploration province holding huge exploration potential.

“To date, the wells drilled by other operators have proved up the existence of a working petroleum system, we now need to focus on identifying the right conditions for the presence of large hydrocarbon accumulations.

“We have recently seen a new wave of major international oil companies moving into the region including Shell, Tullow, OMV and Murphy. This has added further exploration interest and momentum within the area.”

http://www.upstreamonline.com/live/1371832/AziNam-ups-Namibian-block-stake
 
Kenyatta Sees Kenya Windfall Tax in Resource Laws in Months
Posted on 04 August 2014.

Kenya will impose capital-gains and windfall taxes on oil, gas and mining companies within months to ensure the East African nation maximizes benefits from its mineral resources, President Uhuru Kenyatta said.

“This is something that we are very clear about,” Kenyatta said in an Aug. 2 interview at State House in the capital, Nairobi. “We want to ensure that we as a country also are able to benefit from both the windfall and capital-gains tax.”

Tullow Oil Plc (TLW) and partner Africa Oil Corp. (AOI) have found oil reserves in northern Kenya, while BG Group Plc (BG/) is exploring for gas and Randgold Resources Ltd. (RRS) is studying the nation’s potential for gold production. Kenya wants to avoid a similar situation to Tullow’s experience in Uganda, where the company is contesting in court the state revenue authority’s demand that it pay capital-gains tax of about $473 million following its sale of assets in Uganda. The explorer has paid 30 percent of the amount, it said on July 30.

“Uganda has lost a lot of revenue as a result of not really having focused on that,” Kenyatta said. “We want something that’s fair, but equally recognizing that Kenya as a country must benefit from this.”

Kenyatta’s administration is preparing legislation for the extractive industry as investors demand to expand operations in a more predictable environment. Mines Secretary Najib Balala last year canceled 43 mining and exploration licenses held by companies including Base Resources Ltd. (BSE)’s Base Titanium unit, after discovering possible irregularities in the granting of permits.

Before Parliament
In “a couple of months we should have all these laws firmly in place as well as the regulations that will guide the operations of oil and gas as well as mining,” Kenyatta said. The mining law is already before parliament, while the oil bill will be submitted shortly, he said.

Enacting the laws this year will be a positive signal to investors that Kenya is keen on creating necessary conditions for the industry, Ahmed Salim, a senior associate at Teneo Intelligence, said in an e-mailed response to questions.

“The state of Kenya’s regulatory framework on energy policy and petroleum legislation is one of confusion and in drafting and implementing the laws there will have to be substantial coordination within the government,” he said. “It will also be important to see what measures will be in the legislation that will protect companies in case the government chooses to unilaterally revoke licenses, similar to what happened last year.”

Kenya Rankings
The nation ranks third globally in production of soda ash, used in the manufacture of glass, and seventh in output of fluorspar, used in steel, according to the U.S. Geological Survey. The government said last December it plans to offer 31 coal blocks for exploration. While the country has deposits of gold, rubies and sapphires, mining represents less than 1 percent of its gross domestic product, according to the African Development Bank.

Kenya may begin producing crude by the end of the decade, Kenyatta said. Tullow said in August it was looking to start pumping oil as early as this year.

“We are talking about a five- to six-year cycle before we get the first oil,” Kenyatta said.

Fingers Crossed
Kenya, the last frontier in East Africa’s hydrocarbons resource-search after oil finds in Uganda and natural gas in Tanzania, has its “fingers crossed” before gas discoveries in the northern part of the country are quantified “soon,” according to Kenyatta.

The president said he wants to ensure the laws also provide for benefits to national as well as county governments, and communities where the resources are located.

“We are looking at the legal framework and revenue sharing that will ensure these resources are shared in the most equitable fashion, while at the same time recognizing that the investors who we are partnering with also need their return,” he said.

The government is now seeking ways of using its coal, and gas if viable finds are made, to produce the electricity needed to expand its industries, as it builds infrastructure to ultimately export the resources, according to Kenyatta.

Growth Rate
Kenya, East Africa’s biggest economy, will probably grow at 5 percent this year, the World Bank said in its Global Economic Prospects document on June 11. The lender reduced the prediction to 4.7 percent for 2014 as delayed seasonal rains have curbed agricultural production and worsening insecurity has scared off tourists, it said on June 26.

Kenyatta, who become president after last year’s general elections in March, said he is confident Kenya can still achieve an economic growth rate of 10 percent by 2017.

The first year has been a “roller-coaster year,” where his administration began to implement a new constitution, establish new institutions of government, and improve efficiency in land and company registry, he said. Kenya will see economic growth at the desirable levels once institutions and investments in infrastructure start to pay dividends, according to Kenyatta.

Fitch Ratings affirmed the country’s credit assessment at B+, the fourth-highest non-investment grade, with a stable outlook on July 25.

Kenya sold its first Eurobond in June, with yields on the $1.5 billion of debt maturing in 10 years falling 64 basis points since they were issued to 6.23 percent on Aug. 1.

Source: bloomberg.net

http://oilinkenya.co.ke/kenyatta-sees-kenya-windfall-tax-in-resource-laws-in-months/
 
BGP International completes 2D seismic survey of Kenya’s Block 11A
Thursday, 07 August 2014 03:01

ERHC Energy has announced that BGP International has completed the 2D seismic acquisition of Block 11A in Kenya

Block 11A is located to the northwest of the Lokichar Basin where the significant Ekales-1, Ngamia-1 and Twiga South-1 oil discoveries were drilled earlier. (Image source: Space & Light/Flickr)
The geophysical service company has acquired the data over approximately 1,000 line kilometres on behalf of ERHC Energy Kenya Limited and its operating partner CEPSA Kenya Limited, completing the work programme requirements for the initial two-year exploration period under terms of the production sharing contract.

The seismic survey, along with the structural mapping of prospective basins from a full tensor gravity (FTG) gradiometry survey completed last year, will help to identify potential drilling targets in Block 11A, BGP International officials said.

Peter Thuo, general manager of ERHC Energy, said, “Interpretation of the seismic data is not yet complete, but we can say we are encouraged.”

The block is ERHC Energy’s first exploration acreage in East Africa.

In addition to Kenya Block 11A, the company’s oil and gas exploration interests extend across the African continent, including São Tomé & Principe Exclusive Economic Zone (EEZ), Chad and the Nigeria-São Tomé & Principe Joint Development Zone (JDZ).

http://www.oilreviewafrica.com/geol...pletes-2d-seismic-survey-of-kenya-s-block-11a
 
Could Ebola de-rail Oil and Gas exploration in Kenya ?
13 August 2014 Last updated at 16:48

Ebola outbreak: Kenya at high risk, warns WHO

The current outbreak is the deadliest since Ebola was discovered in 1976

The World Health Organization (WHO) has classified Kenya as a "high-risk" country for the spread of the deadly Ebola virus.

Kenya was vulnerable because it was a major transport hub, with many flights from West Africa, a WHO official said.

This is the most serious warning to date by the WHO that Ebola could spread to East Africa.

The number of people killed by Ebola in West Africa has risen to 1,069, the WHO said in its latest update.

Fifty-six deaths and 128 new cases were reported in the region in the two days to 11 August, it added.

Canada said it would donate up to 1,000 doses of an experimental Ebola vaccine to help fight the outbreak.

Airport health checks

In Sierra Leone, a doctor who treated patients infected with Ebola has died, reports the BBC's Umaru Fofana from the capital, Freetown.

Women have been holding daily prayers in Liberia for people affected by Ebola Dr Modupeh Cole is the second Sierra Leonean doctor to die of the disease.

In Nigeria, Africa's most populous state, a third Ebola-related death was reported on Tuesday.

In other developments:

Germany has ordered all its citizens, except health workers, to leave Guinea, Sierra Leone and Liberia, the three states where the outbreak has been the deadliest.

Guinea-Bissau has decided to shut its border with Guinea, Reuters news agency reports.
Ghana has delayed the opening of universities and colleges by at least two weeks to put in place measures to screen students arriving from Ebola-hit countries.

The African Union has pledged $1m (£600,000) to help fight the disease.
The WHO's country director for Kenya, Custodia Mandlhate, said the East African state was "classified in group two; at high risk of transmission".

Health checks at the main airport in the capital, Nairobi, have been stepped up in recent weeks.

'Global resource'

The Kenyan government said it would not ban flights from the four countries hit by Ebola.

Strict precautions must be observed when burying those who have died of Ebola
"We do not recommend ban of flights because of porous borders," health cabinet secretary James Macharia said.

Kenya receives more than 70 flights a week from West Africa.

The West African regional body, Ecowas, said one of its officials, Jatto Asihu Abdulqudir, had died of Ebola in Nigeria.

The 36-year-old had been in contact with Patrick Sawyer, the Liberian government employee who was the first to be killed by the virus in Nigeria on 25 July, Ecowas said in a statement.

Mr Sawyer had flown in from Liberia, when he was diagnosed with Ebola after collapsing at the airport in Lagos, the biggest city in sub-Saharan Africa.

This is the first time West Africa has been affected by Ebola - previous outbreaks have affected East and Central Africa.

There have been 1,975 confirmed, probable and suspected Ebola cases in West Africa since it was identified in February, according to the WHO.

There is no cure for Ebola and the WHO has declared the outbreak a global health emergency.

On Tuesday, it approved the use of untested drugs on Ebola patients.

However, experts say supplies of both the vaccine and the experimental drug Zmapp are limited and it could take months to develop more supplies.

Dr Gregory Taylor, deputy head of Canada's Public Health Agency, said he saw the vaccines as a "global resource".

He said he had been advised that it would make sense for healthcare workers to be given the vaccine, given their increased risk of contracting the disease.

Zmapp has been used on two US aid workers who have shown signs of improvement, although it is not certain what role the medication played in this.

A Roman Catholic priest, infected with Ebola in Liberia, who died after returning home to Spain is also thought to have been given the drug.

What drugs exist currently ?

There are a handful of drugs that have been shown to work well in animals.

One is Zmapp - the drug requested by the Liberian government. This contains a cocktail of antibodies that attack proteins on the surface of the virus.

Only one drug has moved on to early safety testing in humans. Known as TKM-Ebola, this interrupts the genetic code of the virus and prevents it from making disease-causing proteins.

The drug was trialled in healthy volunteers at the beginning of 2014 but the American medicines regulator asked for further safety information. The manufacturer says human studies may soon resume.

Another option would be to use serum from individuals who have survived the virus - this is a part of the blood that may contain particles able to neutralise the virus.

Vaccines to protect against acquiring the disease have also been shown to work in primates. American authorities are considering fast-tracking their development and say they could be in use in 2016. Trials are likely to start soon, according to the WHO.

But experts warn that ultimately the only way to be sure a drug or vaccine is effective is to see if it works in countries affected by Ebola.

Symptoms include high fever, bleeding and central nervous system damage
Fatality rate can reach 90% - but the current outbreak is about 55%
Incubation period is two to 21 days
There is no vaccine or cure
Supportive care such as rehydrating patients who have diarrhoea and vomiting can help recovery
Fruit bats are considered to be virus' natural host
 
Kenyan Senators in Perth to gain insights into dealing with resource riches

August 26, 2014

A large delegation of senior Kenyan officials has flown to Perth this week to gain invaluable knowledge from their Western Australian counterparts on how to deal with resource riches created by their rating as one of world’s most exciting new oil and gas destinations.

Kenya is right at the forefront of the dramatic growth in international interest in East Africa’s oil and gas potential, following a string of onshore and offshore oil and gas discoveries.

While the East African nation and its neighbours are welcoming the tremendous opportunity that oil and gas drilling success has brought to their countries, a number of major issues have arisen, including an urgent requirement to upgrade their legislation covering the resources sector, along with their taxation laws.

In Perth to participate in the inaugural East Africa Oil & Gas Australia (EAOGA) Conference being staged at the Hyatt Regency on Thursday and Friday August 28 and 29, the Kenyan delegation of Senators and advisors are also holding meetings with a number of leading experts in resources law and community expectations while in Western Australia.

According to Stephen Kuria, an organiser of EAOGA 2014 Conference and Chairman of the Kenya-Australian Chamber of Commerce, the Kenyan delegation views its visit to Western Australia as a vital step in the process of updating its oil and gas and mining laws.

“Western Australia has a tremendous amount of experience in oil and gas and mining and is well recognised around the world as a leading producer of LNG, along with gold and iron ore,” Mr Kuria said.

“With East Africa now considered as the newest significant region in the LNG race and Kenya’s oil and gas sector opening up at an incredible rate because of recent oil and gas discoveries, the Nation is keen to ensure that it is prepared for the many changes, economic and culturally, that being an oil and gas ‘hot spot’ brings with it,” he said.

While in Perth the Kenyan delegation, which includes Senators Paul Wamatangi, Catherine Mukitte, and Dr Wilfred Machage, is meeting with Western Australian Government representatives from the Department of State Development, Department of Resources and Industry Development, and the Department of Mines and Petroleum, while they will also receive a special presentation on mining education and environmental and social issues at the Bentley Campus of Curtin University.

The Kenyan visitors will also attend a special dinner hosted by the Kenyan High Commissioner, HE Isaiya Kabira, which will also be attended by WA Minister for Mines and Petroleum, Bill Marmion and WA Minister for Commerce, Michael Mischin. They will also be flying to Kalgoorlie for a tour of the “Super Pit”.

The dramatic effect of the forecast oil and gas riches on Kenya will also be a major topic for discussion at EAOGA 2014.

Dr Machage, will provide a presentation on “Lapset, Transport and Infrastructure in East Africa” on the morning of the second day, while later in the day, Mwendia Nyaga, Chief Executive Oil & Energy Services and former MD of Kenya National Oil, will discuss “The East African status of the upstream oil and gas industry”, and Isaiya Kabira, the High Commissioner of Kenya in Australia, will present on “Government Policies, Regulation and Bidding Rounds –Kenya”.

“Kenya has a very close relationship with Australia and many Australian resource companies have been long time explorers there, and have been successful in making some important discoveries.

“So we are really pleased with the strong support we have received for EAOGA 2014 from both the Kenyan, Western Australian and Australian governments,” Mr Kuria said.

http://www.resourceinvestor.com/201...perth-to-gain-insights-into-dea?t=commodities
 
Somalia takes Kenya to U.N. court in oil rights row

AMSTERDAM Aug 29 (Reuters)

Somalia filed a suit against Kenya at the U.N.'s highest court, seeking to resolve a long-running dispute over lucrative oil reserves in the Indian Ocean.

Somalia asked the International Court of Justice in The Hague to determine the maritime boundary between the coastal nations, which disagree about the rights for exploration and collect revenue from oil discoveries.

Somalia asked the court to intervene, saying "diplomatic negotiations, in which their respective views have been fully exchanged, have failed to resolve this disagreement," a statement issued by the court early Friday said.

Kenyan Attorney General, Githu Muigai, told Reuters he had not yet been served a legal suit but would "take legal steps to defend the interest of the Republic of Kenya".

Somalia has said the row risks deterring multinational oil companies from exploring for oil and gas offshore east Africa.

Kenya recently identified eight new offshore exploration blocks available for licensing, and all but one of them are located in the contested area.

The row could threaten exploration rights that Kenya has granted to oil and gas companies, which have already started exploring in the area.

(Reporting By Anthony Deutsch ni Amsterdam and Humphrey Malalo in Nairobi, editing by John Stonestreet)

http://uk.reuters.com/article/2014/08/29/worldcourt-somalia-kenya-idUKL5N0QZ46H20140829
 
Tullow Oil Exploration And Appraisal Update In Kenya

SOURCE: Tullow Oil | 28 Aug 2014

Tullow Oil plc (“Tullow”) announces the successful results from a series of exploration, appraisal and testing activities conducted in Blocks 10BB and 13T onshore Kenya.

Etom-1 exploration well

The Etom-1 well in Block 13T is the most northerly well drilled to date in the South Lokichar basin, 6.5 km north of the previous Agete-1 discovery. The well encountered approximately 10 metres of net oil pay, extending the proven oil basin significantly northwards. Based on this result the ongoing 550 sq km 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 Weatherford 804 rig drilled the Etom-1 well to a final depth of 2,000 metres. The well will be suspended for use in future appraisal and development operations, following which the rig will move to drill the Kodos-1 well in September 2014 to test the first of several prospects identified in the neighbouring Kerio Basin.

Amosing-2 appraisal well

The Amosing-2 well in Block 10BB is the first appraisal well on the Amosing field discovered in January 2014, and was drilled from the Amosing-1 well pad. The well was deviated 1,350 metres towards the northeast and downdip from the discovery well to calibrate the oil-water contacts of the several oil pools identified in Amosing-1. The Amosing-2 well encountered up to 30 metres net oil pay. As planned, the well was then sidetracked back to some 400 metres from the discovery well to provide additional insight into reservoir distribution in the area and for use in interference testing, planned to start later in 2014. The Amosing-2A sidetrack encountered up to 90 metres net oil pay in several oil pools.

The Sakson PR5 rig drilled Amosing-2 to a final depth of 2,878 metres and the Amosing-2A sidetrack to a final depth of 2,165 metres. The rig will now be moved to explore the southern extent of the South Lokichar basin to drill the Ekosowan-1 well in September 2014, 11.9 km south east of the Amosing-1 well.

Ngamia-3 appraisal well

The Ngamia-3 well in Block 10BB continued the appraisal of the Ngamia field. The well was successfully drilled 1.6 km north of the Ngamia-1 discovery well and encountered 150 metres of net oil pay in both Auwerwer and Lokone reservoirs. The well has been suspended for likely use in future interference testing, appraisal and development activities.

The Marriott PR46 rig drilled Ngamia-3 to a final depth of 2,700 metres. The rig will now be moved to continue the appraisal of the Ngamia field, drilling the Ngamia-4 and Ngamia-5 wells which are planned to be used in an interference testing programme in the Ngamia field.

Ewoi-1 flow test

The SMP-105 testing/workover rig recently completed testing activities at the Ewoi-1 well. The well demonstrated good permeability in the water-bearing Lokone reservoirs and a programme to target these updip is under consideration. Flow rates from the Auwerwer reservoir DST were limited to around 50 bopd, potentially due to the high wax content and shallow depth of this DST.

The lightweight rig is currently testing the Twiga South-2A appraisal well where two to three tests are planned.

Tullow Operates Blocks 10BB and 13T with 50% equity and is partnered by Africa Oil Corporation, also with 50%.

Commenting today, Angus McCoss, Exploration Director, said:

“Etom-1 has successfully extended the South Lokichar rift bounding fault play northwards and we look forward to testing the southern area of the basin with Ekosowan-1. Continued success in appraisal of the Ngamia and Amosing fields reinforces our belief that the South Lokichar basin holds very considerable potential which we hope to replicate in additional basins. The next basin-opening test will be in the neighbouring Kerio Basin, with the Kodos-1 well expected to spud in early September”.

http://www.epcengineer.com/news/post/12189/tullow-oil-exploration-and-appraisal-update-in-kenya
 
Tullow lifts mood with northern Kenya find

Sunday, August 31, 2014

LOOKING TO FUTURE: Tullow has set 2015 as the year to start drilling for the oil.

NAIROBI, Kenya -Tullow Oil lifted the spirits of its investors in London last week, after reporting a potentially big find in northern Kenya.

In a statement, the company said the Etom-1 exploration well it drilled in Block 13T was the most northerly drilled so far, and extended the proven oil basin significantly northwards after it hit about 10 metres of net oil pay.

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

Meanwhile, the Amosing-2 appraisal well in Block 10BB encountered up to 30 metres net oil pay, and was then sidetracked back to some 400 metres from the discovery well to provide additional insight into reservoir distribution in the area. The sidetrack encountered up to 90 metres net oil pay in several oil pools.

The Ngamia-3 appraisal well, also in Block 10BB, was successfully drilled 1.6 kilometres north of the Ngamia-1 discovery well and encountered 150 metres of net oil pay in both Auwerwer and Lokone reservoirs, Tullow said.

The Ewoi-1 flow test well demonstrated good permeability in the water-bearing Lokone reservoirs and a programme to target these updip is under consideration, Tullow added.

“Etom-1 has successfully extended the South Lokichar rift bounding fault play northwards and we look forward to testing the southern area of the basin with Ekosowan-1. Continued success in appraisal of the Ngamia and Amosing fields reinforces our belief that the South Lokichar basin holds very considerable potential which we hope to replicate in additional basins,” Tullow Exploration Director Angus McCoss said in a statement.“The next basin-opening test will be in the neighbouring Kerio Basin, with the Kodos-1 well expected to spud in early September,” he said.

http://www.busiweek.com/index1.php?Ctp=2&pI=1775&pLv=2&srI=9&spI=7&cI=11
 
Tax capital gains only after discovery, says oil, gas industry

Posted on 02 September 2014.

Kenya’s ability to attract investments in oil and gas exploration could be affected by a plan by the government to impose capital gains tax (CGT) on profits made from selling exploration blocks.

The National Assembly’s Finance Trade and Planning Committee on Wednesday amended the Finance Bill 2014, requiring that a CGT of five per cent be charged on earnings from property transactions from January next year.

“Income on which tax is chargeable is the whole gain that accrues to a company or an individual on or after January 1, 2015 on the transaction of property situated in Kenya,” reads the amended Finance Bill, which is awaiting assent from President Uhuru Kenyatta to become law.

The government expects to earn Ksh9 billion ($102 million) annually from the CGT, which had been abolished 36 years ago in 1978.

This is likely to make prospecting blocks less attractive as CGT on transfer of shares before discovery of oil or gas increases the risk profile. The amendments will also see the withholding tax on dividends from mining operations rise from 10 per cent to 20 per cent.

Eduardo and Associates, a consulting firm, said CGT and windfall taxes may discourage investors from prospecting in other parts of the country, as commercial oil exists only in the Lokichar basin in northwestern Kenya.

“During farm-in (buying) and farm-out (sale) of interests in exploration blocks, there is no gain. Capital gains tax is applicable only when either commercial oil or gas has been discovered, and the amount quantified,” Eduardo’s managing consultant Patrick Obath said.

He added that the meaning of CGT and windfall taxes needs to be well defined with clear rules on when the taxation regimes come into effect without being applied retrospectively.

Windfall tax is influenced by changes in the international market such as when the price of a barrel of crude oil increases from $100 to $200. Investors need to be cushioned when prices fall.

Windfall taxes

Oil and Energy Services Ltd, a consulting firm, said since 2005, windfall taxes have been included in production sharing contracts (PSCs) that companies negotiate and sign with the Kenyan government.

“There is no gain in farm-in or farm-out as it covers exploration costs. CGT and windfall taxes ought to be well structured as the sector is nascent,” said Oil and Energy Services chief executive Mwendia Nyaga.

Introduction of CGT and windfall taxes would enhance government revenues in the short term. The impact on the hydrocarbons sector is still unclear but it could be disruptive if the interests of investors and the government are not balanced.

Africa Oil Corporation is working with joint venture partners and the government to ensure the range of taxes does not hamper the exploration phase of the industry’s development in Kenya.

The discussions are being held parallel to a World Bank- supported project to develop a petroleum master plan for Kenya that will ensure that such decisions are focused on maximising long term benefits to the country.

Africa Oil’s vice president of external relations Alex Budden said the company and its partners have spent approximately $1 billion exploring various blocks in Kenya. Africa Oil’s share is over $400 million.

“We are currently spending around $80 million net per quarter in Kenya and see that level continuing through 2015. This is important foreign investment for Kenya and any decision must take all of these factors into account,” said Mr Budden.

Africa Oil and Tullow Oil Plc each own 50 per cent of block 10BA, 10BB and 13T. Tullow has 65 per cent stake in block 12A while Africa Oil holds 20 per cent and Marathon Oil Corporation 15 per cent.

Mixed feelings

“We would not want to speculate on the implications of the proposed taxes,’’ said Marathon’s external communications specialist John Porretto.

Africa Oil and Marathon Oil each own 50 per cent stake in block nine.

FAR Ltd of Australia is in early stages of exploration activities in Kenya and the company said it looks forward to working closely with government, regulatory agencies and partners in joint ventures.

“It would be inappropriate at this time to comment publicly on domestic matters in Kenya where FAR Ltd expects to begin an exploration programme in the future,” said the company’s spokesman, Ian Howarth.

Camac Energy on its part said it was proud to be part of the future energy industry in Kenya. The company has a combined 37,000 square kilometres in the Lamu Basin, including two onshore and two offshore blocks.

“Kenya has a conducive business environment, and we continue to encourage other companies to also invest in the country,” said Camac’s director of corporate finance and investor relations Christopher D Heath.

Source: theeastafrican.co.ke

http://oilinkenya.co.ke/tax-capital-gains-only-after-discovery-says-oil-gas-industry/
 
PCL Pancontinental Oil & Gas has a stake in Kenya L6;
40% Offshore
16% Onshore


Far Ltd receives term extension in Kenya’s Block L6
September 12, 2014 by Samuel Kamau Mbote

Australian explorer Far Ltd has announced that it has received a 1 year extension in the PSC term of Block L6 after the company delayed planned activities Government of Kenya due to the inability to access the ground to complete planned seismic operations because of security incidents in the country.

In February 2014, the Group signed a farm-out to Milio E&P Limited and Milio International Limited of Dubai in relation to the onshore part of Block L6, Kenya. Under the terms of the farm-out deal, the Group will be fully carried through the drilling of an onshore exploration well in 2015 and the acquisition, processing and interpretation of a regional 1,000 line kilometre 2D seismic survey.

At the reporting date the conditions precedent of the farm out agreement had not been completed and the parties were negotiating an amendment to the farm-out agreement in light of the implications of the security incidents.

The Group will hold 24% in the onshore area, retains its full 60% interest in the offshore part of Block L6 and remains the operator in the block.

Meanwhile the company says it continues to pursue entry into Block 9 and the plans for future work program and has been in discussions with Dominion Petroleum Kenya Limited.

FAR’s subsidiary, Flow Energy Ltd, was a member of the bidding consortium that made an application bid for Block L9 in 2010.

Following negotiations with the Ministry of Energy and Petroleum, a heads of agreement was signed and Block L9 was subsequently awarded in May 2011.

Far says it is of the view that that the Miocene carbonate reef play, identified in Block L6 extends along the Kenyan coast and into Block L9 and that a future 3D seismic survey over the inboard part of Block L9 would evaluate this potential.

http://oilnewskenya.com/2014/09/12/far-ltd-receives-term-extension-in-kenyas-block-l6/
 
Urgent talks as Somalia claims Kenya coast
Posted Saturday, September 13, 2014 | by- ISAAC ONGIRI

Somalia's claim could effectively turn Kenya into a landlocked country.

Kenya risks losing almost all of its territorial waters in the Indian Ocean if a case filed by Somalia in an international court succeeds.

Alarmed by the grave implications of the move by its war-torn neighbour, the Jubilee Government has reopened negotiations with Somalia over its claim to a huge swathe of maritime territory considered rich in oil deposits and fish, which the ministry of Foreign Affairs says could effectively turn Kenya into a landlocked country.

On Saturday, Cabinet Secretary for Foreign Affairs and Trade Amina Mohammed told the Sunday Nation the matter is so sensitive that a quick meeting to facilitate direct talks between President Uhuru Kenyatta and his Somalia counterpart Hassan Sheikh Mohamud has been arranged in New York.

“We are in discussions with the government of Somalia. It is unfortunate they logged their complaints even as we dialogued over this matter,” Ms Mohammed said, adding that Kenya preferred to settle the matter out of court.

Documents seen by the Sunday Nation show that the way Somalia wants the boundaries redrawn would take away at least five oil blocks and vast oceanic territory where deep sea fishing is conducted.

It would also mean that Kenya might have to access the Indian Ocean only with Somalia’s permission.

In June, an Australian firm prospecting off Kenya’s Indian Ocean coast reported a verified oil find at one of its recently completed wells in the Lamu Basin.

Pancontinental Oil and Gas NL confirmed their completed Sunbird well has intersected an oil column, making it the first-ever discovery of oil off the East African coast.

The dispute could also unsettle regional harmony as the proposal by Somalia could automatically move the Tanzanian island of Pemba to Kenyan territory, according to Foreign Affairs and International Trade Principal Secretary Karanja Kibicho.

“This claim by Somalia could make Kenya a landlocked country which may restrict our access to the high seas. And if the alterations adopt the proposal by Somalia then the island of Pemba will become part of Kenya,” said Dr Kibicho.

If the case filed by Somalia at the International Court of Justice (ICJ) is determined in its favour Somalia’s maritime boundary in the Indian Ocean would stretch all the way to Tanzania’s shores.

ECONOMIC INTERESTS

Based in the Dutch city of The Hague, ICJ is the primary judicial branch of the United Nations that mostly determines legal disputes between states.

In its application to the ICJ, the Somali government is making reference to a number of oil fields in the disputed area which Kenya has laid claim to, signalling that the battle may have been precipitated by economic interests.

Ms Mohammed, an experienced diplomat with vast experience in the UN system, said Kenya was keen on preserving good relations with Somalia and is making every effort to find a solution to the impending crisis that could create tension in the region.

She said the New York meeting between President Kenyatta and President Mohamud on the sidelines of the annual UN General Assembly later this month was part of the diplomatic push to sort out the problem.

Her views were reinforced by PS Kibicho: “We have set technical teams who are negotiating. Somalia is considered a friendly state ”” it is our neighbour, and it will remain so.”

The Sunday Nation has also learnt that even as the diplomatic efforts continued Attorney-General Githu Muigai had scheduled an appointment with the ICJ president to discuss ways of handling the crisis.

“I recently appeared before the Law of the Sea Commission in New York to try to attend to this matter. But we were referred to the ICJ because the case had been filed (by Somalia),” Prof Muigai said.

The AG explained that his office was assembling a team of experts to support Kenya’s case.

“We have already submitted an MoU (Memorandum of Understanding) to the UN secretary-general showing the delimitation of our boundaries with Tanzania. We want the same formula adopted in our case with Somalia,” the AG stated.

CASUAL NATURE

Somalia rushed to court over what sources at the Ministry of Foreign Affairs claimed was the casual nature in which the Kenyan government was handling the long-standing matter.

Somalia was apparently angered by Kenya’s decision to skip without notice a negotiation meeting that was to be held between August 25 and 26 this year.

“The Kenyan delegation, without providing either advance notification or subsequent explanation, failed to arrive and, as a consequence, the additional round of meetings that Kenya had requested were not held,” reads part of the application Somalia filed in court.

The Registrar of the ICJ Philippe Couvreur wrote to Kenya on August 28 detailing the case filed by Somalia.

“I have the honour to inform Your Excellency that the Federal Republic of Somalia has today filed in the Registry of the Court an Application, instituting proceedings against the Republic of Kenya concerning a dispute in relation to the establishment of the single maritime boundary between Somalia and Kenya in the India Ocean, delimiting the territorial sea, exclusive economic zone and continental shelf including the continental shelf beyond 200 nautical miles (M),” reads the letter.

Kenya’s ambassador to The Netherlands, Ms Makena Muchiri, forwarded the letter to Ms Mohammed the following day.

APPOINTED AGENT

“Kindly note that the provision of Article 40 of the Rules of the Court that requires Kenya to inform the court of their appointed agent and the address of service at the seat of the court to which all communications can be sent,” Ms Muchiri wrote.

President Mohamud appointed his minister for Foreign Affairs and Investment Promotion Dr Abdirahman Dualeh the country’s agent in the case.

In the application, Dr Dualeh made it clear there were “no special or relevant circumstances that could justify Kenya’s claim” to the territory it occupied.

According to the technical descriptions used in documents, in previous negotiations with Somalia, Kenya insisted that the maritime boundary should run due east along the parallel of latitude from the land boundary terminus while Somalia said the boundary should be drawn to follow an azimuth (angle) of approximately N131.5 degrees east from the land boundary terminus out to the outer limit of the two states’ maritime entitlements.

A source at the Foreign ministry, who did not want to be named, explained this meant Kenya preferred the horizontal line from the land through the sea while Somalia wanted a diagonal dissection that would give it most of the territory.

“The parties have met on numerous occasions to exchange views on the settlement of the dispute over the delimitation of their maritime boundary. None of these negotiation sessions has yielded agreement. Indeed no meaningful progress towards an agreement has been achieved at any of them,” reads part of the application by Somalia.

On oil exploration, Somalia claimed that Kenya had acted unilaterally on the basis of the current boundary to exploit both living and non-living resources on the Somali side.

However, Kenya’s Foreign Affairs PS denied that oil exploration in the disputed area may have sparked off the controversies.

However, Somalia claims in court papers: “Relevant Kenyan petroleum blocs include L-5, L-21, L-22, L-23,L24 and L-25.According to publicly available information Kenya awarded block L-5 to an American company.”

The country also lays claim to oil blocks Kenya awarded to a French company.

“The blocks lie entirely or predominantly on the Somali side of provisional equidistance line,” read part of the court filings.

Sources in the Foreign ministry in Nairobi allege some Western and Gulf oil investors may have convinced the Somali Parliament and top politicians to claim the territory.

Even more intriguing are allegations that some senior Kenyan officials may be colluding with the Somalis by providing them with insider information that strengthens the ICJ case and any diplomatic negotiations.

Any loss of territorial waters could also compromise security as it would restrict Kenya Navy patrols.

http://mobile.nation.co.ke/news/Som.../2452028/-/format/xhtml/-/fajjmx/-/index.html
 
Kenya oil deposits to hit 1billion barrels
Saturday, September 20th, 2014

Kenya’s recoverable oil reserves in the country’s tertiary rift basin is likely to exceed one billion barrels, the ministry of energy and petroleum said on Friday.

Cabinet Secretary for Energy and Petroleum David Chirchir said the four recently discovered oil wells that were drilled by Tullow Kenya in the Lokichar sub-basin have raised the country’s recoverable oil reserves from 300 million barrels to 600 million.

“However, with further appraisal drilling which is currently on- going, the recoverable reserves are likely to be in excess of billion barrels in the Tertiary Rift Basin alone,” Chirchir said in a statement issued in Nairobi.

“These positive developments indicate that Kenya could become a significant oil producer,” Chirchir said.

“In readiness for the commercialization of the oil, the ministry is fast tracking the construction of the Uganda-Kenya oil crude pipeline,” the official said.

He noted the construction of a new Nairobi to Mombasa oil pipeline will be completed in the next 18 months.

The East African nation has already made a gas discovery in the Anza Basin in northwest Kenya that is capable of producing approximately one trillion cubic feet of gas.

Chirchir said Kenya is seeking to enhance and diversify national power generation by identifying new supply sources.

“The government plans to expand electricity production capacity to ten gigawatts by 2024 and eventual to 25 gigawatts by 2030,” he said.

Principal Secretary for Energy and Petroleum Joseph Njoroge said the rural electrification program will be funded by the sale of state energy assets.

“We intend to reach every village through small renewable energy projects such as solar panels and wind turbines,” he said, adding the government is encouraging Public Private Partnership projects in order to plug the energy deficiency.

http://sweetcrudereports.com/2014/09/20/kenya-oil-deposits-to-hit-1billion-barrels/
 
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