Transcript OVERVIEW OF DRAFT NATIONAL ENERGY POLICY

Petroleum Exploration
in East Africa
10th Africa Oil & Gas, Trade & Finance Conference
and Exhibition
ALGIERS, ALGERIA, 2ND - 5th April 2006
D. R. O. Riaroh
Chief Geologist
Ministry of Energy
REPUBLIC OF KENYA
NOT AN OFFICIAL UNCTAD RECORD
Contents
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East Africa at a Glance
Petroleum Exploration History
Exploration status
Attractiveness of the Regions Petroleum
Potential
Sedimentary Basins of East Africa
Incentives
Conclusion
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East Africa at a Glance
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Land Area:
Population:
Growth Rate:
Currencies:
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Official Lang:
English
Main Exports:
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Capital Cities:
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Principal Ports:
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1,768,771 Km2
94 million Approx.
6% p.a Approx.
Respective Country
Shilling
Kiswahili &
Tea, Horticultural
Products, Coffee,
Pyrethrum, Soda
Ash, Minerals
Nairobi (Kenya)
Kampala(Uganda)
Dodoma (Tanzania)
Mombasa, Dar es
Salaam and Tanga
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Petroleum Exploration History
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The first Exploration Licence issued to D’arcy
in 1933 in Lamu Embayment near Mombasa in
Kenya.
Second Licence signed between the Govt. of
Uganda and Africa European Investments Co.
of South Africa in 1935. Drilled first well (Waki1) near Butiaba in East Africa in Albertine
Graben.
First Licence in Tanzania issued to Shell & BP
in 1952
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Exploration Status
Kenya
Offshore 
Onshore -
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4 blocks under Licence
1 well planned
Intense interest
10 pending
applications/under
negotiatons
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Cont..
Tanzania
Offshore –
_
Onshore
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6 blocks under Licence
6 under negotiations
2 wells planned
3 licenses
Drilling & Development of
Mnazi Bay Gas
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Cont..
Uganda
Onshore:
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Several licenses in the
Albertine &3 wells drilled
Seismic surveys undertaken recently
and more planned
Promotional and licensing rounds
planned
East African Petroleum Conference’07
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Attractiveness of the Regions
Petroleum Potential
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Attractive legal and fiscal regimes.
Negotiable Production Sharing
Contract Terms:
Exploration and Production periods
Cost Oil Recovery
Profit Oil Splits
Surface Rental Fees
Training Fees etc.
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Cont….
Attractive Geology
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Good Source Rocks
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Excellent reservoirs
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Working Petroleum systems
gas discoveries (Songo songo, Mnazi bay)
oil seeps (Pemba, Wingayongo-Tz, Butiaba in
semliki, Ug and Tarbaj, Kenya)
Gas blow outs (Pate well ,Kenya)
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Tar sands in Tarbaj (cf, Madagascar, EthiopiaTsimororo)
Good traps
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Sedimentary Basins of East Africa
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East Africa has total
Sediment cover of 680,814
square kilometres.
Sediment thickness upto
12000 metres.
Total seismic 85,890 line km
Total wells drilled over 60
The following table Provides
detailed data on the
Sedimentary Basins
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Basin
Area
Seismic
No. of
Deep
Wells
Sediment
Thickness
Sub-Basins
Hydro-Carbon
Occurrence
1.
Ruvuma
16,000
1,800
2
Over 5 km
-
- Mnazi Gas
Field
- Msimbati Gas
Seepage
2.
Mandawa
15,000
3,500
3
4.5 km
-
3.
Rufiji
16,000
2,200
2
10 km
-
Songo Songo
Gas Field
Wingayongo
Oil Seepage
Permo
Triassic thro’
Jurassic and
Crateceous
to Tertiary
4.
Selous
50,000
4,700
1
10 km
-
-
Permo
Triassic –
Lower-Mid
Jurassic in
the North
5.
Ruvu
15,000
3,000
2
Over 8 km
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-
PermoTriassic to
Neogene
6.
Dar-es-Salaam
Platform
18,000
5,000
5
5 km
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-
Permo
Triassic
Karoo
7.
Coastal
12,000
9,000
13
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Pemba, Zanzibar
& Mafia
Tandua Oil
Seepage
PermoTriassic to
Tertiary
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Age
Permo
Triasic to
Tertiary
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Basin
Area
Seismic
No. of
Deep
Wells
Sediment
Thicknes
s
Sub-Basins
Hydro-Carbon
Occurrence
Age
8.
Lamu
Embayment
132,77
0
15,991
(0nShor
e)
25, 471
(Offshor
e)
16
12 km
-
Gas Shows in
Wells
PermoTriassic to
Tertiary
9.
Mandera
51,920
1,287
2
10km
Tarbaj Hill Oil
Seep
Karoo and
Post Karoo
10
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Anza Basin
94,220
14,362
11
10km
Chalbi
Yamicha
Kaisut
Oil & Gas
shows in
Wells
Late
Jurassic/
Cretaceous
to Tertiary
11
.
Kenya Tertiary
Rift Basins
38,904
7,652
-
4km
Suguta
Magadi
Turkana
North and South
Lokichar
Nyanza
North and South
Kerio
Oil and Gas
shows
Tertiary
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Basin
Area
Seismic
No. of
Deep
Wells
Sediment
Thickness
Sub-Basins
Hydro-Carbon
Occurrence
Age
12
Albertine Graben
22,000
398
5
Over 5km
L. Edward
George
Semliki
N. Lake Albert
Pakwach
Rhino Camp
5 Oil
Seepages
Tertiary
13
Modern Rift
Basins
79,000
6,000
2
Over 4km
Rukwa
Ruhuhu
Ruaha
L. Tanganyika
L. Nyanza
Oil seepage
on L.
Tanganyika
Sublacustrine
flow of
asphalt
Tertiary
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Pemba-Zanzibar
Deep Sea
45,000
4,300
0
10km
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-
Jurassic to
Tertiary
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Mafia Deep offShore
40,000
6,700
0
10km
-
-
Jurassic to
Tertiary
680,814
85,890
64
Total
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Basin Types
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1. Coastal Basins
Selous, Ruvu,
Mandawa, Ruvuma
of Tanzania
Lamu Embayment
of Kenya
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Cont.
2. Rift Basins
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The Karoo basins- Late Carboniferous
to Triassic.
Characterised by Continental clastic
sediments,
Fluvial and Deltaic Deposits with
occasional marine incursions
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Contd..
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Central African Rift SystemCretaceous Anza Graben in Kenya.
Comprises essentially fluvial lacustrine
and deltaic deposits.
East African Rift Basins – Tertiary
Albertine Graben in Uganda and Kenya
Rift basins.
Characterised by fluvio-lacustrine
sediments.
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Contd..
3. Intra Cratonic Basins :
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Stable crustal basin i.e in Uganda
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Lake Victoria basin
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PETROLEUM PROSPECTS OFFSHORE LAMU
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TUMBUSI STRUCTURAL LEAD – BLOCK
L-10
Tumbusi
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MANDAWA PROSPECT
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KISEGI FORMATION ALBERTINE
GRABEN
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ALBERTINE GRABEN
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Incentives
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Exemption from payment of
Customs Duty, VAT and Import
Duties, and Levies on Capital
Equipment and Goods for
Petroleum Operations
Accessibility to Land
Protection of Foreign Investments
Security of contract
Early recovery of investment
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Cont…
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Low Government take
adequate return on Investment to the contractor
provide the Government with a fair share of income
Negotiable terms.
Advance knowledge of terms for exploration and
production
Government’s portion of Profit Oil is inclusive of all
taxes to be paid by the contractor.
Capital Depreciation - 5years.
Allowable deductions.
No Ring fencing.
Allows a Contractor to offset exploration and
development expenditures for new fields against
taxable income from producing fields.
Deficit carry over.
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Conclusion
Why East Africa?
Because it is Elephant Country.
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THANK YOU
FOR YOUR ATTENTION !!!