CEPSA and Milio international receive exploration licenses in Kenya

[twitter-follow screen_name=’oilnewskenya’]

The ministry of energy and petroleum has licensed Compania Espanola de Petroleos (CEPSA) and Milio international of Dubai to explore for crude oil and gas in north western Kenya and at the coast.

CEPSA will acquire 55 percent from EHRC in block 11A a block situated at the Kenya South Sudan border and encompassing 2.95 million acres.

Following CESPA entry EHRC now retains 35 percent of the block with the Kenyan government owning the rest.

Already EHRC has carried out an airborne Full Tensor Gravity Gradiometry (FTG) survey of Block 11A that confirmed the Lotikipi basin (Kenya’s largest aquifer) extends to the block.

The parties have announced a planned 2D seismic survey of at least 1,000 line kilometers, which is expected to commence during the spring of 2014. The survey will be conducted by BGP Kenya Limited, one of the world’s leading geophysical service companies.

Final results are expected to significantly advance the exploration team’s understanding of the internal structure of the Lotikipi rift basin and enable the identification of the most prospective areas.

Milio International on the other hand will take 60 percent of the onshore part of block l6 after FAR received approval from the Kenyan Ministry of Energy and Petroleum for its farm out agreement with the company.

FAR will be fully carried through a $30 million exploration work program including a regional onshore 1,000km 2D seismic survey and an onshore exploration well in Block L6 although FAR retains all its rights to the highly prospective offshore part of Block L6, in respect of which farm out discussions are progressing.

[twitter-follow screen_name=’oilnewskenya’]