Apache takes Kenyan slice

US independent Apache is set to take a 50 per cent stake in a production sharing contract for Block L8 in the Lamu basin, offshore Kenya, after reaching a deal with Australia’s Origin Energy.

Under the agreement Apache will pay Origin $13.2mn in back costs and take over operatorship of the PSC. Apache will also need to meet a component of Origin’s costs of an exploration well to be drilled in Block L8, on the Mbawa structure.

"Origin is pleased to have secured this agreement with Apache which, subject to joint venture and government approvals, will see the joint venture go forward and assume a commitment to drill,” Origin's executive general manager, geoscience and exploration new ventures, Rob Willink said.

Origin, which currently holds a 75 per cent stake in the PSC, said it expected the divestment of 50 per cent of its interest to Apache to be completed by June.

Following the completion of the deal Origin’s stake in Block L8 will be reduced to 25 per cent, while joint venture partner Pancontinental Oil & Gas and its wholly owned subsidiary Afrex will continue to hold 10 per cent and 15 per cent respectively.

 

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