Africa Oil Corp Projects New Oil Wells in Kenya

Africa Oil Corp Projects New Oil Wells in Kenya

Africa Oil Corp. and its two joint venture partners, Tullow Oil, and Maersk, have announced new plans to drill up to eight exploration and appraisal wells in Kenya starting from December to boost proven resources and improve financing prospects for field development and an export pipeline, Standard Digital wrote. The plan to recommence drilling activities in the Kenyan South Lokichar oil basin is located in Blocks 10BB and 13T.

An initial project for four wells has the potential to be extended by further four wells. The first two wells are expected to be the Etete and Erut prospects in the north of South Lokichar basin. Other potential prospects include further appraisal of the Ngamia and Amosing fields to target un-drilled flanks.

The South Lokichar Basin in north Kenya is estimated to have 766m barrels of recoverable contingent oil resources. The group initially planned to build a single pipeline to connect Ugandan oil fields and the Kenyan project to Kenya’s coast, but Uganda opted to build its own pipeline via Tanzania.

In addition, the group is also intending to launch an extensive water injection test program in the same period of this year in order to collect data to optimize the field development plans.

Africa Oil, which holds a 25% interest in Blocks 10BB and 13T, has recently stated that the company’s its liquidity and capital resource position improved dramatically during 2016 with the receipt of $439.4m upon completion of the farmout transaction with Maersk, according to Oil Voice. In the farmout, Maersk has acquired 50% of the company’s interests in Blocks 10BB, 13T and 10BA in Kenya and the Rift Basin and South Omo Blocks in Ethiopia.


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