Between Q2 2016 to date Tullow has successfully struck oil in 8 wells maintaining a 95% success rate. Each had 100 meters of net oil pay just like Ngamia 1. However they haven’t released the results of the appraisals which has to independently verified by industry experts. So i don’t believe on the small 1 bilion barrels count for now until all the data is out. http://www.capitalfm.co.ke/business/files/2017/04/TULLOW-FIELD.jpg
Emekuya-1 is located 2.5 kilometres north of Etom-2 where the firm encountered 102 metres of net oil pay in two columns in 2015/FILE
By KENNEDY KANGETHE, NAIROBI, Kenya, May 17 – Kenya’s oil export prospects have been boosted following Tullow Oil new discovery of more crude oil in the South Lokichar basin.
“The Emekuya-1 exploratory appraisal well has made an important discovery in the northern part of the South Lokichar Basin. This well has proven oil charge across a significant part of the Greater Etom structure and we are very encouraged by the quality and particularly the regional extent of the reservoir,” says Angus McCoss, Exploration Director at Tullow Oil.
Emekuya-1 is located 2.5 kilometres north of Etom-2 where the firm encountered 102 metres of net oil pay in two columns in 2015.The firm says the down hole pressure measurements and fluid samples suggest that the main oil reservoir is of the same static pressure gradient as the Etom-2 well which demonstrates that a major part of the Greater Etom structure is oil-filled. The well was drilled by the PR Marriott Rig-46 to a total measured depth of 1,356 metres and penetrated reservoir quality Miocene sandstones which correlate to those seen in the successful Etom-2 well. Tullow operates Blocks 13T and 10BB with 50 percent equity and has partnered with Africa Oil Corporation and Maersk Oil both with 25 percent. Tullow Oil has so far successfully completed of Erut 1, Amosing 6 and Ngamia 10. The firm has announced that it encountered 75 metres of net oil pay in two zones at Emekuya-1 well in Block 13T pushing the estimated crude oil reserves in the South Lokichar Basin to 750 million barrels.
When will Kenya start earning from this? Why isn’t Tullow investing in a refinery at Turkana so as to serve Kenya, Uganda and South Sudan instead of exporting crude?
Why this tactical delays? What happened to the oil in the wells that was discovered first, almost 6 years ago???
So many questions.
We are between 5-7 years before full oil production starts.
1.Tullow has to complete oil exploration. On average that takes 60 exploration well. We are nearing 40. From full appraisals of the wells then we can know the oil reserve count and the scope of the work needed. Each well costs about $10 million to drill. We lost 24 months when the oil prices tanked forcing Tullow to halt exploration. They sold it’s shares and borrowed to continue drilling in Kenya. This is where we are now.
2. After the final count the scope of work is clear and by then all legislation must be complete. Gov will then invite upstream companies to develop the industry and negotiations can start. This is where Tullow will exit as the winning bidder will now acquire the block from them, pay capital gain tax to gov and pay the agreed oil exploration fee to government as well. Here it’s only $billions that talks to our treasury for that licence depending on oil reserve count.
3. With the reserves known the size of pipeline needed, infrastructure and refinery can be decided and built by the new operator. Massive capital investment needed. The local community, county and national government will benefit in their share of jobs and supplies agreed in the laws.
4. When infrastructure is complete the oil can start flowing and it’s sold. The proposed oil commission will publish the numbers and we know what the oil company gets, locals, host county, share given to devolved funds and national treasury.
5. Right now Tullow has stored in containers 60,000 oil barrels as it tests the wells during well appraisals. It advices government that the oil is a security risk and costly to maintain there. Since Tullow can’t claim it, it adviced Gov to take responsibility for it. Unfortunately it’s crude oil and their is no refinery here to handle it. Our oil refinery in changamwe is absolute to handle it. Tullow also needs their container empty to continue with other oil wells appraisals. That is why a decision was made to sell it. The revenue gained will be used to tarmack the roads in Lokichar.
Sante sana. Where did you get this very important info? Are you within the corridors of power?
If so, [SIZE=1]Can you hook me up with a few tenderpreneurs?[/SIZE]
Earning from it takes a while. Look at how much it costs to merely extract our oil vs. the cost in other (competing) mining countries. Our best bet is a sustained rise in int’l crude oil prices.
over a decade, Ug has also missed several deadlines. 10 years after full exploration they are still stuck in negotiations. Their pipeline deal has stalled in the financing stage two years after they awarded it to Tanga port. The ug-tz pipeline is at FEED stage same with ours. However several firms have offered to finance our pipeline construction when it’s done. Lamu port construction is ongoing. Tanga port is still idle, the same for years after award. Total hasn’t confirmed finances but interest. Ug refinery contract was re-advertised after the previous successful bidder from Russia pulled out.
Seems GoK has agreed to locals demands. 10% locals, 20% county, 70% National government. Of the 70% remember 38-40% of it goes to devolution including host county.