Apache Corporation to exit Kenya offshore operations

oil platformApache Corporation held a 50 per cent interest in the L8 block, which comprises 5,114 sq km situated in the Lamu Basin. (Image source: Wikimedia Commons)US oil and gas explorer Apache Corporation has announced that it will exit its Kenya offshore operations in the L8 Block

Apache Corporation held a 50 per cent interest in the license, which comprises 5,114 sq km situated in the Lamu Basin.

According to Reuters, Apache Corporation senior vice president of corporate affairs Bob Dye said, “We determined that other areas in our worldwide portfolio provided better opportunities for future capital investments.”

Earlier in 2013, Apache Corporation announced that it was selling its non-core assets globally to focus on US onshore production. It recently sold its oil business in Egypt to China's Sinopec for US$3.1bn.

In the L8 Block, Britain's Tullow Oil and Australia's Pancontinental Oil and Gas each hold a 15 per cent interest, while Origin Energy owns a 20 per cent stake, according to company sources. In August 2012, Apache Corporation began drilling the Mbawa Prospect in the license.

Kenya currently has 46 blocks, of which 44 are licensed to 23 explorers. The Kenyan government is reportedly encouraging foreign investment in petroleum exploration.

Apache Corporation has informed the Kenyan government of its intention to move out of the venture, the news agency reported.

 

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