Lamu oil, gas find not viable but promising

By Macharia Kamau

Kenya: Australian oil and gas explorer Pancontinental Oil and Gas says a well it has been drilling with its partners off the coast of Lamu is not commercially viable. The firm yesterday said the Sunbird 1 well incurred trace amounts of natural gas, adding that such small amounts are a clear indication that there are huge deposits of gas and oil.

In a statement, Pancontinental said the well would be plugged and abandoned but further analysis would be done on the deposits recovered during the drilling of the well. The well had been drilled to a depth of 1,583.7 metres sub-sea, with a water depth of 723 metres.

“Both gas and liquid samples have been recovered. In addition to the recovered gas, the nature of the liquid samples and whether or not these contain naturally occurring hydrocarbon liquids (oil or condensate) remains to be determined by further analysis,” said the firm in the statement yesterday.

“At this stage, due to its estimated size, the Sunbird discovery itself is considered unlikely to be commercial.” Pancontinental has an 18.75 per cent stake in the Block L10A where the Sunbird well is located. Drilling of the well began January 2014. The well is operated by UK firm BG Group which has a 50 per cent stake in the block L10A while Thailand’s PTTEP has 31.25 per cent. The Sunbird 1 is the second the second well Pancontinental has drilled in offshore Kenya that has had shows of oil and gas but not enough to make it commercial.

Potential for hydrocarbons

In late 2012, the firm was in a joint venture that drilled an offshore well in Block L8 – Mbawa-1 – that was later plugged and abandoned. In Mid March, Energy Cabinet Secretary Davies Chirchir announced that companies exploring in Lamu had encountered both gas and oil, cautioning that the finds were not commercial but a show that the area has potential for hydrocarbons. Pancontinental holds a similar view and said discoveries that have been made so far will give way for success in the coming years. “We believe that we are now in a position to explore for larger volumes of gas and oil over our extensive portfolio of prospects and leads offshore Kenya,” said Pancontinental.

“The string of world class discoveries in Mozambique and Tanzania started in a similar way to our first Kenyan discovery, and we have good reason to be enthusiastic about the future for oil discoveries here.”

“As in virtually all frontier areas, the first discoveries pave the way for often more successful future exploration.” Pancontinental and its partners in Block L10A expect to make further analysis of the deposits recovered during the drilling of Sunbird Well.