National Oil Corporation of Kenya Oil and Gas Potential in Kenya 9 th Africa oil & Gas, Trade &...

National Oil Corporation of Kenya

Oil and Gas Potential in Kenya

9th Africa oil & Gas, Trade & Finance Conference & showcase

Maputo

John EgoSenior GeologistNational Oil Corporation of Kenya

NOT AN OFFICIAL UNCTAD RECORD


KENYA AT A KENYA AT A GLANCEGLANCE

Social:Social:Government type:Government type: Democratic Rep.Democratic Rep.Size:Size: 582,646 sq. km582,646 sq. kmReligion:Religion: Christian 78%, Christian 78%, Muslim10% Muslim10%

others 12%others 12%Capital City:Capital City: NairobiNairobiMain seaport:Main seaport: Mombasa MombasaNational language:National language: KiswahiliKiswahiliOfficial language:Official language: EnglishEnglish

Economic:Economic:Population:Population: 31.5 million (2003)31.5 million (2003)Currency:Currency: (KSh.) (KSh.) GDP per capita:GDP per capita: US$. 322 US$. 322 Major GDP earners: Tourism, tea, Major GDP earners: Tourism, tea,

horticulture, horticulture, CoffeeCoffee


KENYA SEDIMENTARY BASINSKENYA SEDIMENTARY BASINS

0 100 200

KILO M ETE R S

TU

RK

AN

A B

AS

IN

LO TIK IP IB A S IN

LO KICHAR(LO PER OT) TRO UGH

UGA NDA

KENYA

SOUTHKERIO

TRO UGH

SO

MA

LIA

ETHIOPIA

SUDAN

N A IR O BINYANZA TR OUGH

MA

GA

DI T

RO

UG

H

LAK

E V

I CT

OR

IA

???

?

34 00 '0 35 00 '0 36 00 '0 37 00 '0 38 00 '0 39 00 '0 40 00 '0 41 00 '0 42 00 '0

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Tertiary Rift Basin

Anza Basin

Mandera Basin

Lam u Basin

S edim entary B as ins


OIL EXPLORATION HISTORYOIL EXPLORATION HISTORY• 1950’S - Oil exploration commenced1950’S - Oil exploration commenced

• 1960 to 1984 - 16 wells drilled mainly in the Lamu and Anza basins1960 to 1984 - 16 wells drilled mainly in the Lamu and Anza basins

• 1981- NOCK was incorporated in 19811981- NOCK was incorporated in 1981

• 1984 GOK enacted new Petroleum (Exploration and Production) Act. 1984 GOK enacted new Petroleum (Exploration and Production) Act.

• 1986 Petroleum (E & P) Act revised. Royalties replaced by PSC’s 1986 Petroleum (E & P) Act revised. Royalties replaced by PSC’s

• 1985 to 1992 - Further 14 wells drilled1985 to 1992 - Further 14 wells drilled

• 1995 - Lamu Basin Study completed.1995 - Lamu Basin Study completed.

• 2001 - Tertiary Rift Study complete2001 - Tertiary Rift Study complete

• 2000+ - Award of offshore PSC’s and reinvigorated exploration2000+ - Award of offshore PSC’s and reinvigorated exploration


CURRENTLY LEASED CURRENTLY LEASED ACREAGEACREAGE


EXPLORATION DRILLINGEXPLORATION DRILLING

Anza Basin – 10 WellsAnza Basin – 10 Wells

Tertiary Rift Basin –2 wellsTertiary Rift Basin –2 wells

Mandera Basin – 2 wellsMandera Basin – 2 wells

Lamu Basin – 16 wellsLamu Basin – 16 wells

O IL A N D G A S SHO W

D RILLED & A BA N D O N ED WELLO IL SEEPO IL SHO W

G A S SHO W O IL A N D G A S SHO W

D RILLED & A BA N D O N ED WELLO IL SEEPO IL SHO W

G A S SHO W


KENYA GEOPHYSICAL KENYA GEOPHYSICAL DATABASEDATABASE

Pre-existing DataPre-existing Data2D Seismic2D Seismic

Onshore Onshore : 39,298 km: 39,298 kmOffshore Offshore : 25,552 km: 25,552 km

Aeromag : >268,00 kmAeromag : >268,00 kmGravityGravity : 12,313 km: 12,313 km

Recent ActivityRecent Activity

2003/04 7,884km 2D Seismic2003/04 7,884km 2D Seismic

2004/05 3,600 2D Seismic2004/05 3,600 2D Seismic


HYDROCARBON HYDROCARBON POTENTIALPOTENTIAL

BasinBasin Area Area kmkm22

Wells Wells drilleddrilled

Aver. Aver. Sediment Sediment thicknessthickness

Lamu Lamu 132,770132,770 1616 12,000 m12,000 m

ManderManderaa

51,92051,920 22 10,000 m10,000 m

Anza Anza 94,22094,220 1111 10,000 m10,000 m

TertiarTertiary Rifty Rift

38,90438,904 22 4,000 m4,000 m

Sedimentary Basins


ANZA BASIN

AnzaAnza Basin


HYDROCABON OCCURANCES IN ANZA HYDROCABON OCCURANCES IN ANZA BASINBASIN

Lower Cretaceous Clastics flowed gas Lower Cretaceous Clastics flowed gas during DST (Ndovu-1 well)during DST (Ndovu-1 well)

Tarry oil associated with water in Tarry oil associated with water in Sirius-1 wellSirius-1 well

Gas shows in Lower Cretaceous sandsGas shows in Lower Cretaceous sands Oil shows/flourecence/staining in Oil shows/flourecence/staining in

aptian sands in Ndovu-1 wellaptian sands in Ndovu-1 well Oil shows in:Oil shows in:

─ paleogene in Hothori-1 wellpaleogene in Hothori-1 well─ Miocene to Cretaceous in Chalbi-3 wellMiocene to Cretaceous in Chalbi-3 well


MANDERA BASIN

• Failed Rift systemFailed Rift system

• Permo-Triassic to Tertiary in Permo-Triassic to Tertiary in

ageage

• Sediment thickness ~ 10kmSediment thickness ~ 10km

• Presence of hydrocarbons Presence of hydrocarbons

supported by > 200m thick supported by > 200m thick

sand impregnated with sand impregnated with

biodegraded asphaltbiodegraded asphalt

Surface Geology of the Mandera Basin


TERTIARY RIFT BASIN(s)• Consisting of at least 9 sub-basinsConsisting of at least 9 sub-basins

• Oligocene to Pliocene in ageOligocene to Pliocene in age

• Sediment thickness up to 3 kmSediment thickness up to 3 km

• Potential reservoirs: up to 40% Potential reservoirs: up to 40%

porosity in sands (Loperot-1 well)porosity in sands (Loperot-1 well)

• Presence of hydrocarbons Presence of hydrocarbons

supported by oil recovered in supported by oil recovered in

Loperot-1 ~ 29Loperot-1 ~ 29oo API API


STRUCTURAL SETTINGSTRUCTURAL SETTING

LOPEROT-1

0

500

1000

1500

2000

2500

3000

3500

4000

W LOKICHAR BASIN

TVK-13 TVK-12

KERIO BASIN NE

BASEMENT

MIDDLE MIOCENE

LOKIC

HA

R FA

ULT

LOKO

NE FA

ULT

LATE MIOCENE TO

QUATERNARY

EARLY TO MIDDLE

MIOCENE

LOKONE SHALE

S

PALEOGENE TO

EARLY M

IOCENE

V V V V

LAVA FLOWV

LATE MIOCENETO PLIOCENE

?

EARLY TOMIDDLE

MIOCENE?


LOPEROT-1 WELL GEOLOGICAL LOPEROT-1 WELL GEOLOGICAL COLUMNCOLUMN

• Drilled by Shell in 1992Drilled by Shell in 1992

• Encountered excellent Tertiary Encountered excellent Tertiary

reservoirsreservoirs

• Found source rocks with up to Found source rocks with up to

7% Total Organic Carbon7% Total Organic Carbon

• Tested oil ~ 29Tested oil ~ 29oo API API


LAMU BASINLAMU BASIN• Lies both onshore & offshore.Lies both onshore & offshore.

• Formed during the separation of Formed during the separation of

Madagascar from AfricaMadagascar from Africa

• Sediments range in age from Upper Sediments range in age from Upper

Carboniferous to RecentCarboniferous to Recent

• Sediment thickness of up to 12 kmSediment thickness of up to 12 km

• The Tertiary section contains highly The Tertiary section contains highly

prospective source and reservoir prospective source and reservoir

unitsunits

0 100 200

KILO M ETE R S

TU

RK

AN

A B

AS

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LO TIK IP IB A S IN

LOKICHAR(LOPEROT) TROUGH

UGA NDA

KENYA

SOUTHKERIO

TROUGH

SO

MA

LIA

ETHIOPIA

SUDAN

N A IR O BINYANZA TROUGH

MA

GA

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RO

UG

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LAK

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IA

???

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50

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Tertiary Rift Basin

Anza Basin

Mandera Basin

Lam u Basin

S edim entary B as ins


REGIONAL STRUCTURAL SETTINGREGIONAL STRUCTURAL SETTING

Tertiary

Cretaceous

Jurassic

Triassic

8km

W ESIMBA-1


LAMU BASIN EXPLORATION LAMU BASIN EXPLORATION POTENTIAL POTENTIAL

WELLWELL DEPTH DEPTH (M)(M)

RESULTSRESULTS

Simba-1Simba-1 36043604 Gas show Gas show 0.7% C0.7% C11

Kofia-1Kofia-1 36293629 Oil show at Oil show at 1740 M. And 1740 M. And Gas showGas show

Kipini-1Kipini-1 36633663 TOC 1.1%TOC 1.1%

Pate-1Pate-1 41884188 TOC 2%TOC 2%

MaridadMaridadii

41974197 Oil show at Oil show at 3660M3660M

• Gas and oil shows Gas and oil shows

• Multiple tectonic trends Multiple tectonic trends

with large faulted 4-Way with large faulted 4-Way

dip closures off shoredip closures off shore

• Oil potential includes Oil potential includes

multiple petroleum multiple petroleum

systems ranging from systems ranging from

Tertiary to TriassicTertiary to Triassic


EXPLORATION OPPORTUNITIESEXPLORATION OPPORTUNITIES

0 1 0 0 200

K ILO M ET ER S

SU

GU

TAT

UR

KA

NA

BA

SIN

L O T IK IP IB A S IN

L O K IC H A R(L O P E R O T ) T R O U G H

UG ANDA

KENYA

S O U T HK E R IO

T R O U G H SO

MA

LIA

ETHIOPIA

SUDAN

N A IR O B IN YA N Z A T R O U G H

MA

GA

DI T

RO

UG

H

LA

KE

VIC

TO

RIA

L A M U E M B AY M E N T

MA

ND

ER

A B

AS

IN

ANZA BA

S IN

???

?

34 00'0 35 00'0 36 00'0 37 00'0 38 00'0 39 00'0 40 00'0 41 00'0 42 00'0

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Te rtia ry R ift B a s in

A n za B a s in

M a n de ra B a s in

L am u B a sin

10A

2

3

9

11

10B

12B

12A

E X P LO R AT IO N B LO C K S

O p e n E xp lora tio n B lo ck s

L ea se d B lo ck s

KEY

S E D IM E N TA R Y BA S IN S

E .K.K /E &P /6.08.2003

IND

IAN

OC

EAN

Open BlocksOpen Blocks1 1 - 33,636 sq - 33,636 sq

kmkm2 2 - 15,528 sq - 15,528 sq

kmkm33 - 24,539 sq km- 24,539 sq km9 9 - 27,776 sq - 27,776 sq

kmkm10A 10A - 15,289 sq - 15,289 sq

kmkm10B 10B - 25,512 sq - 25,512 sq

kmkm11 11 - 35,786 - 35,786

sq kmsq km12A 12A - 18,788 sq - 18,788 sq

kmkm12B 12B - 4,169 sq km- 4,169 sq kmL-1 L-1 - 19,305 sq - 19,305 sq

kmkmL-2 L-2 - 21,979 sq - 21,979 sq

kmkmL-3 L-3 - 9,636 sq km- 9,636 sq kmL-4 L-4 - 7,025 sq km- 7,025 sq kmL-10L-10 - Offshore - Offshore

LamuLamuRelinquished AcreageRelinquished Acreage


KENYA – FRONTIER INVESTMENTKENYA – FRONTIER INVESTMENT

• Political stability with positive investment climatePolitical stability with positive investment climate• Large frontier (Onshore/Offshore) acreageLarge frontier (Onshore/Offshore) acreage• Competitive commercial terms Competitive commercial terms • Acceptable balance of risk/reward.Acceptable balance of risk/reward.• Previous exploration data readily available.Previous exploration data readily available.• Low entry cost, no signature bonuses Low entry cost, no signature bonuses • Award focuses on work programmeAward focuses on work programme• Provides investor with growth opportunitiesProvides investor with growth opportunities


PSC Legal Regime

• Dev. & Prod. Period -25 years• Acreage surrender -negotiable• Surface fees -negotiable,• Training fees -negotiable • Natural gas discovery -Negotiate terms with Government• Initial Exploration Period - with 2 automatic additional

Periods: - terms negotiable• In case of disc. - field evaluation programme allowed


FOR FURTHER INFORMATIONFOR FURTHER INFORMATION

Visit:Visit: Kenya Booth Kenya Booth

Managing Director National Oil Managing Director National Oil Corporation of Kenya.Corporation of Kenya.P.O. Box 58567 00200 NairobiP.O. Box 58567 00200 NairobiTelephone 254 20 6952000Telephone 254 20 6952000E-mail [email protected] [email protected]

ContactContact::

oror


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