PERTH, Australia – BG Group is leading negotiations for two oil and gas production licenses offshore Kenya, according to partner Pancontinental Oil & Gas.
The licenses are for blocks L10A and L10B, and are subject to approvals from the Kenyan Ministry of Energy. The proposed work program includes 2D and 3D seismic surveying in the first phase with drilling in later phases.
In total, the permits cover 10,547 sq km (4,072 sq mi) with water depths of 200-1,900 m (656-6,233 ft).
Pancontinental is also a partner in the L8 offshore license in the Lamu basin, where operator Origin Energy Kenya recently agreed a farm-out to Apache Corp.
Origin currently holds a 75% interest in the PSC, with the remainder held by Pancontinental. On completion, Origin would receive $13.2 million in respect of past costs with Apache taking a 50% operating position. In addition, Apache will meet an agreed component of Origin’s costs towards a planned exploration well on the Mbawa structure.
Mbawa is the largest of several attractive exploration objectives on the block, Pancontinental says. It is a large but complexly faulted anticline mapped on 3D seismic, with potential for oil and gas at inferred Cretaceous and Jurassic reservoir levels.