18 February 2013

Kenya: 'Kenya Oil Finding Is Commercially Viable'

Nairobi — Kenya's oil find is commercially viable, British oil Exploration Company, Tullow Oil Plc. has confirmed.

This confirmation marked another milestone in Kenya's search for the precious commodity in the wake of erratic global oil prices and a fast growing local economy.

In a statement released by Tullow Oil Wednesday, the company said the fourth test on oil deposits at Twiga South-1 well had confirmed real signs that the oil find was commercially viable. The tests have been ongoing for the last two months.

According to Tullow Oil, the company is conducting a fifth test with indications it could produce over 500 barrels of oil per day. This will in essence take the total flow to 0ver 2,850 barrels per day for that specific well.

"With this confirmation, the team is encouraged and very optimistic of the whole process. we are now moving to Ngamia 1 to perform similar test. These tests provide the first potentially commercial flow rates achieved in Kenya," read the statement.

Ngamia 1 and Twiga South-1 are approximately 30km apart and analysts believe that the entire section could be holding oil deposits.

Tullow first discovered oil in Kenya in mid-2012 and the first find has led to sustained exploration efforts with more and more firms coming in to be part of the exercise.

This year, Tullow plans to drill an extra 11 wells and carry out extensive tests that would inform the company's further activities in the area.

Both oil finds are situated in South Lokichar in Kenya's arid Turkana County. The government has already formed a taskforce which is currently engaging all stakeholders including local communities to forestall any clashes related to the find given that the area is known for hostilities like cattle rustling.

"We will continue with further exploration and appraisal efforts in this basin before the commercial threshold is achieved. Only after this can we enter the next phase which are discussions to do with harvesting," read the statement.

Exploration efforts in Kenya are currently concentrated in the arid areas of Turkana, Marsabit and recently in Nyanza province's Nyakach District where there are other prospects for oil.

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