BG Group has signed Production Sharing Contracts with the Government of Kenya for two offshore exploration blocks – L10A and L10B. BG Group will be operator on both blocks and will hold a 40% equity interest in Block L10A and a 45% interest in Block L10B. The initial work programme consists of a commitment to acquire seismic data during an initial exploration period of two years.

Blocks L10A and L10B together cover an area of more than 10,400 sq kms in the southern portion of the Lamu Basin, offshore Kenya, located in water depths ranging from around 200 metres to in excess of 1,900 metres.

BG Group Executive Vice President and Managing Director, Africa Middle East & Asia, Sami Iskander, said: ‘BG Group looks forward to working with our partners and the Kenyan Government to play an active role in the exploration for oil and gas offshore Kenya.’

BG Group’s partners in the Kenya blocks are: Block L10A: Premier Oil Investments 20%; Cove Energy 25%; Pancontinental Oil & Gas 15%. Block L10B: Premier Oil Investments 25%; Cove Energy 15%; Pancontinental Oil & Gas 15%.

John Craven, CEO of Cove Energy commented: ‘We are delighted to have obtained a significant ground floor interest in these two blocks in line with our strategy of expansion in to quality acreage offshore East Africa. Cove now participates in seven blocks offshore Kenya.

‘Importantly we see potential hydrocarbon fairways in continuity with our adjacent deepwater blocks L11A and L12. Also aligning with the BG group as operator is, we believe, very positive given their recent success in the neighbouring Tanzania offshore. We look forward to working with our partners and the Kenyan Government to play an active role in the exploration for oil and gas offshore Kenya.’

Source: energy-pedia