• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 1 hour In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 5 hours Will Uncle Sam Step Up and Cut Production
  • 6 mins Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 10 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 10 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 2 hours * 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on terrorism, wars, lopping off heads * Too late now
  • 5 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 10 hours Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 16 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 24 hours Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 1 day Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 23 hours Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 14 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 6 hours US Petroleum Demand Strongest Since 2007

KENYA: Jordanian Company Quits Exploration License

Bottom Line: The decision by Jordan’s Edgo Energy to relinquish its offshore exploration license opens up opportunities for new explorers but highlights two key problems: the technical difficulty of drilling in Kenya’s deep waters and the security implications of exploring in this maritime border area which is still disputed by Somalia and Kenya.

Analysis: Edgo Energy’s license area is Block L26, which is a technically challenging (and expensive) drilling area, which lies in ultra-deep waters of the Lamu basin. Edgo acquired Block L26 in July 2012 in a joint deal with Qatar First Investment Bank. Along with the technical difficulties and the expense of drilling here, a border dispute between Kenya and Somalia places this block right in the firing line.  

There remains a great deal of uncertainty over how Somalia will eventually respond to Kenya’s bullish move to auction off exploration blocks in disputed territory. The heart of the issue is whether the maritime border should run directly east, parallel to the line of latitude. This was how it was drawn up in a 2009 memorandum of understanding; however Somalia has rejected that and instead wants the maritime border to run perpendicular to the coastline. This would give Somalia a larger swathe of offshore waters - some areas of which have already been auctioned off by Kenya to Anadarko, Total and Eni, as well as some smaller companies, like Edgo.

Kenyan Exploration Block

Kenya - empowered by recent oil discoveries and its military role in Somalia that has been instrumental is pushing back militant al-Shabaab forces - has categorically ignored Somalia’s warnings over disputed offshore oil blocks. Kenya certainly holds the upper hand in this dispute, but Somalia could seek to at least delay exploration.

Tanzania Oil Blocks

Recommendations: While Edgo’s relinquishment of some of its offshore acreage in Kenya will be eyed by other juniors on the scene who have rushed to acquire Kenyan blocks after major discoveries by Tullow, we caution against acquiring acreage in this disputed area.




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play