national oil corporation of kenya oil and gas potential in kenya 9 th africa oil & gas, trade...
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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
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
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
???
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Tertiary Rift Basin
Anza Basin
Mandera Basin
Lam u Basin
S edim entary B as ins
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
CURRENTLY LEASED CURRENTLY LEASED ACREAGEACREAGE
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
ANZA BASIN
AnzaAnza Basin
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
STRUCTURAL SETTINGSTRUCTURAL SETTING
LOPEROT-1
0
500
1000
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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?
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
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
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KILO M ETE R S
TU
RK
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LO TIK IP IB A S IN
LOKICHAR(LOPEROT) TROUGH
UGA NDA
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SOUTHKERIO
TROUGH
SO
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LIA
ETHIOPIA
SUDAN
N A IR O BINYANZA TROUGH
MA
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Tertiary Rift Basin
Anza Basin
Mandera Basin
Lam u Basin
S edim entary B as ins
National Oil Corporation of Kenya
REGIONAL STRUCTURAL SETTINGREGIONAL STRUCTURAL SETTING
Tertiary
Cretaceous
Jurassic
Triassic
8km
W ESIMBA-1
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
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
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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
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
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
National Oil Corporation of Kenya
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