• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 1 day The Discount Airline Model Is Coming for Europe’s Railways
  • 6 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 15 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 hour Renewable Energy Could "Effectively Be Free" by 2030
  • 2 hours Saudi Fund Wants to Take Tesla Private?
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 11 hours Starvation, horror in Venezuela
  • 20 hours Venezuela set to raise gasoline prices to international levels.
  • 14 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 1 day Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
Alt Text

Chevron, Exxon And Total On Niger Delta Hit List

A group of militant organizations…

Alt Text

Can Nigeria And Libya Avoid A Production Cut?

Nigeria and Libya were exempted…

Alt Text

A Storm Is Brewing In The Southern Gas Corridor

While Russia looks to circumvent…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

KENYA: Oil Production 6-7 Years Away

Bottom Line: Close to proving commercial viability of its major finds since last year, a new report by the IMF suggests that Kenya will start producing in 6-7 years.

Analysis: The IMF has already classified Kenya’s Turkana finds as “commercial”, noting the May 2012 discoveries by Tullow Oil in Kenya’s Tertiary Rift. This is a bit of a misnomer, but it’s close. In April, Tullow said it had achieved close to commercial quantities of oil in its Twiga South-1 well. In Tullow’s Ngamia-1 well in Block 10BB, the company has now completed the first of six drill stem tests, but commercial viability has not yet been proven. The IMF is proving to be highly optimistic here, gambling on commercial viability, while Tullow remains sober. The IMF believes that the prospects for commercial viability are high and improving.


Recommendation: The IMF’s note of confidence comes at a crucial time for the big players on the Kenyan scene, and should go some way to boost shareholder confidence.  But look here for new legislation to come on line soon, as well, as the Kenyan government reviews its tax on natural resources in expectation of becoming a major producer. The rules are already changing: Now firms that want to qualify for exploration rights will have to commit to spending $28.2 million in the first two years onshore and $31.2 million in the first three years offshore. (For more information on the changing regulatory environment…

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