, NAIROBI, Kenya, Sept 10 – Kenya is well on its way to position itself as an oil and gas trading hub with the discovery of natural gas in the Lamu basin.
Australian firm Pancontinental Oil and Gas Limited (PCL) on Monday said it has struck natural gas at L8 block on Kenya’s offshore.
PCL said it has encountered 50 metres of net pay in gas-charged sands at the Mbawa well operated by Apache Corporation.
It is estimated Mbawa well has between 2.2 trillion and five trillion cubic feet of potential recoverable gas and a mean resource value of 200 million to 300 million barrels.
“It is hard to overstate the significance of first-up drilling success in what is effectively a virgin area. The success at Mbawa, whilst not fully quantified, is likely the beginning of a new wave of discoveries offshore Kenya,” the company said in a statement released on Monday.
PCL is part of a joint venture (JV) at L8 block, where Mbawa is situated.
The JV is headed by Apache Corporation that holds 50 percent, Origin Energy Limited which has 20 percent while Tullow Oil and PCL each have a 15 percent stake.
PCL has four offshore permits in Kenya and predicts that 25 trillion cubic feet of gas will ultimately be discovered across the four blocks being explored.
Pancontinental has key assets in Australia, Kenya and Namibia.