Petroleum Exploration in East Africa 10th Africa Oil

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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
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Contents

• 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

• Land Area 1,768,771 Km2
• Population 94 million Approx.
• Growth Rate 6 p.a Approx.
• Currencies Respective Country Shilling
• Official Lang Kiswahili English
• Main Exports Tea, Horticultural Products,
  Coffee, Pyrethrum, Soda Ash, Minerals
• Capital Cities Nairobi (Kenya)
  Kampala(Uganda) Dodoma (Tanzania)
• Principal Ports Mombasa, Dar es Salaam and
  Tanga

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Petroleum Exploration History

• The first Exploration Licence issued to Darcy
  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 (Waki-1) 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 - 4 blocks under Licence
• 1 well planned
• Onshore - Intense interest
• 10 pending applications/under
  negotiatons

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Cont..

• Tanzania
• Offshore 6 blocks under Licence
• _ 6 under negotiations
• - 2 wells planned
• Onshore 3 licenses
• Drilling Development of Mnazi Bay Gas

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Cont..

• Uganda
• Onshore Several licenses in the Albertine
  3 wells drilled
• Seismic surveys undertaken recently and more
  planned
• Promotional and licensing rounds planned
• East African Petroleum Conference07

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Attractiveness of the Regions Petroleum Potential

• 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
• Good Source Rocks
• Excellent reservoirs
• 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)
• Tar sands in Tarbaj (cf, Madagascar,
  Ethiopia-Tsimororo)
• Good traps

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Sedimentary Basins of East Africa

• 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 Age
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 - Permo Triasic to Tertiary
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 - - Permo-Triassic to Neogene
6. Dar-es-Salaam Platform 18,000 5,000 5 5 km - - Permo Triassic Karoo
7. Coastal 12,000 9,000 13 9 Pemba, Zanzibar Mafia Tandua Oil Seepage Permo-Triassic to Tertiary
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Basin Area Seismic No. of Deep Wells Sediment Thickness Sub-Basins Hydro-Carbon Occurrence Age
8. Lamu Embayment 132,770 15,991 (0nShore) 25, 471 (Offshore) 16 12 km - Gas Shows in Wells Permo-Triassic to Tertiary
9. Mandera 51,920 1,287 2 10km Tarbaj Hill Oil Seep Karoo and Post Karoo
10. 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
14 Pemba-Zanzibar Deep Sea 45,000 4,300 0 10km - - Jurassic to Tertiary
15 Mafia Deep off-Shore 40,000 6,700 0 10km - - Jurassic to Tertiary
Total Total 680,814 85,890 64
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Basin Types

• 1. Coastal Basins
• Selous, Ruvu, Mandawa, Ruvuma of Tanzania
• Lamu Embayment of Kenya

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Cont.

• 2. Rift Basins
• 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..

• Central African Rift System-Cretaceous 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
• Stable crustal basin i.e in Uganda
• Lake Victoria basin

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PETROLEUM PROSPECTS OFF-SHORE 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

• 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

• 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
• Governments 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 !!!