The Big Winners in Kenya’s Oil Debut
Kenya will start pumping its first commercial oil next year and begin exporting in 2016, but this is just the opening salvo: new discoveries in recent months and fast-track new well development make Kenya the darling of East Africa from an investor’s perspective.
Kenya is set to soar past Uganda, which discovered oil much earlier, but is now having a hard time getting it out of the ground and into the market. And the next five months should bring not only news of the first commercial output for Kenya, but new commercial prospects coming online.
Multibillion dollar Beira oil pipeline to Botswana
Mining Oil and Gas Services (MOGS), a South African-based company, intends to construct a multibillion-dollar fuel pipeline linking Mozambique (from Beira) and three Southern African countries through Zimbabwe including Botswana. This was recently reported by Zimbabwean publication The Herald.
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MOGS is a black-owned company that focuses on providing various products and services to the mining, oil and gas services industry in South Africa and neighbouring countries through its specialist subsidiaries.
The Herald reported that the proposed pipeline will start in Beira and run through Zimbabwe in Harare and Bulawayo. From Bulawayo, it will run south-west to Botswana and run north through Zambia to the Democratic Republic of Congo.
Africa Oil Announces Fifth Consecutive Major Oil Discovery in Kenya
Africa Oil Corp. is pleased to announce that the Agete-1 exploration well in Block 13T, onshore Northern Kenya, has discovered and sampled moveable oil with an estimated 100 metres of net oil pay in good quality sandstone reservoirs.
The Agete-1 wildcat well is part of a major exploration campaign and has made the fifth consecutive oil discovery in the first of a chain of multiple rift basins across Africa Oil's acreage in the region.
Kenya to get oil know-how from Arabian states
PRESIDENT Uhuru has said Kenya will rely on Arab countries to manage the newly discovered oil in Turkana county. Addressing the Third Africa-Arab Summit in Kuwait city on Wednesday, Uhuru said his government wants oil to be beneficial to Kenya and not a curse as has been witnessed in some countries.
He said Kenya is already reaching out to the region on how to extract the mineral without causing conflict. "We intend to borrow a lot and rely heavily on the brotherly generosity of Arab nations to get the knowhow and technology to conduct cost effective exploration and extraction of the resource," Uhuru said.
