• 4 minutes USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 10 minutes IT IS FINISHED. OPEC Victorious
  • 16 minutes GOODBYE FOREIGN OIL DEPENDENCE!!
  • 50 mins Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 2 hours End of EV Subsidies?
  • 1 day The Great Climate Change Swindle
  • 2 hours Price Decline in Chinese Solar Panels
  • 2 hours Maersk's COO statment.
  • 3 hours Trump accuses Google Of Hiding 'Fair Media' Coverage of him
  • 2 days S. Australia showing the way
  • 1 hour China Builds LNG Icebreaker
  • 6 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 1 day More OPEC Members May Leave
  • 1 day Exxon buys green power.
  • 2 days Not only GM: Morgan Stanley Predicts Ford to Cut 25,000 Jobs in Overhaul
  • 2 days Feudalism: The Most Resilient System?

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.

Kenya - empowered…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




Oilprice - The No. 1 Source for Oil & Energy News
-->