First-ever crude oil discovered in Kenya...is it a blessing or a curse of the black gold?

Kenya strikes it lucky with first-ever crude oil discovery
Daily Mail
March 27, 2012


Tullow is partnered with Africa Oil at the site of last weekend's discovery. Credit: AFP/Getty

Oil has been discovered in northern Kenya, the country's delighted president has announced.
It is the first time black gold has been found within the east African nation's borders - and the commercial viability is still uncertain.

However, the Anglo-Irish firm behind the exploratory drilling believe they may have tapped into reserves of light crude similar to that uncovered in neighbouring Uganda. President Mwai Kibaki announced last night that the discovery had been made in the north-west Turkana region over the weekend.

'This is the first time Kenya has made such a discovery and it is very good news for our country,' Mr Kibaki said. 'It is however the beginning of a long journey to make our country an oil producer, which typically takes in excess of three years.'

Tullow Oil - which is carrying out oil exploration in the region - said that 20 meters of net oil pay was discovered at a site called Ngamia-1. It is a high-quality oil that will yield more gasoline and diesel per barrel than some other crude discoveries in Africa. Tullow's exploration director, Angus McCoss, called the discovery an 'excellent start' to Tullow's exploration campaign in the rift basins of Kenya and Ethiopia.

'To make a good oil discovery in our first well is beyond our expectations and bodes well for the material program ahead of us,' Mr McCoss said in a statement, adding that the firm is working with Kenya's government and plans on further seismic and drilling activities.

The oil find was near the border with Uganda and South Sudan. Both of those countries have oil industries.


Tullow is using aerial mapping and seismic geo-technology to determine where to drill. 
Credit: AFP/Getty

Tullow said many other prospective sites similar to Ngamia have been identified 'and following this discovery the outlook for further success has been significantly improved.'

Echoing Kibaki, Tullow spokesman George Cazenove countered against over-excitement, saying found that oil was in nitially Uganda in 2006 and had not yet reached the production stage. Though Uganda will get some oil to market next year, production won't reach full speed until 2016, he said.

'I think Uganda provides a helpful parallel,' Mr Cazenove said. 'There's a lot more work to do before we talk about how we get this to production and how it would affect Kenya as a nation.'
'It's a great result but must be seen in context. It's a long-term game for sure,' he said.

Kenya Energy Minister Kiraitu Murungi was quoted by Kenya's leading newspaper, the Daily Nation, as saying that Tullow had informed him that Kenya's oil deposits could be bigger than Uganda's. Mr Cazenove declined to directly comment on Murungi's claim but said that Uganda's and Kenya's oil potential are similar. Tullow said the Ngamia well was drilled to 1,041 meters (3,415 feet) and would now be drilled to about 2,700 meters (8,858 feet) - a process that will be completed in May.

Tullow, which began its exploration work in Kenya last year, has a 50 per cent interest in multiple sites in Kenya and Ethiopia's Rift Valley basins covering more than 100,000 square kilometers (38,610 square miles).