What to look out for in Kenya’s oil and gas sector in January 2015

2015 continues to look promising for the oil and gas sector in Kenya with various planned projects expected to continue while new companies will begin work in the various acreages.

In our radar this January is the planned Badada-1 well in Block 9 located in the Anza basin which is expected to spud with the drilling contracts already awarded to Greatwall which will operate the GW-190 land rig while Aberdeen-based Norwell Engineering will manage the drilling operations.

Also expected this month (January 15^th) is an update by joint partners Tullow Oil and Africa Oil in Blocks 10BB and 13T. In focus will be the results from the drilling of Engomo-1 wildcat well location the first test of the North Turkana Basin and results from the Ngamia-5 appraisal well which will help assess reservoir connectivity in the Ngamia field which has been the largest oil discovery to date in the South Lokichar Basin.

Also expected in the updates are the results on the Extended Well Testing in Amosing oil field where production and injection interference testing, involving the Amosing-1 and 2A wells, was to be carried out to help provide dynamic flow characterization of the Amosing stacked reservoirs.

On the seismic front various companies are expected to acquire data in various blocks with CAMAC Energy expected to acquire 2D seismic in blocks Block L1B onshore Kenya, and Block L16 partly onshore and partly offshore Kenya having already awarded contracts to BGP Kenya Limited and Polaris Seismic International Limited respectively.

Results are also expected in Q1 on the 3D seismic survey carried out in the Ekowasan area in Block 10BB in the South Lokichar Basin with acquisition expected to have been complete in December last year. Once the data is interpreted follow up drilling will target better developed reservoir expected between Amosing-1 and Ekosowan-1, further away from the faulting at the basin margin.

In January Australian explorer Far Ltd is also expected to announce an update on farm-out negotiations in Block L6 with the announcement having been expected in Q4 2015.

Simba Energy has also announced it expects to sign a contract and commence the initial 2D seismic program of up to 400Km in Block 2A in the Q1 of 2015 designed to target drilling locations on prospects and leads in two basins, and also yield volumetrics that will support revised resource estimates.