Dominion wins Kenya deep-water block

Dominion, wins, Kenya, deep-water, Block, L15, offshore, Lamu, basin, oil, africa, Kenyan, Block l15, PSC, Kofia-1The Kenyan government has awarded London-listed Dominion Petroleum Block L15, in the offshore Lamu basin

The Kenyan government has awarded London-listed Dominion Petroleum Block L15, in the offshore Lamu basin

Dominion said the award of the deep-water block was still subject to the signing of a production sharing contract by the company and Kenya’s Minister for Energy which was expected take place in the next few weeks.

The initial exploration period for Block L15 will last two years, during which time Dominion will be required to undertake a minimum $2.8mn work commitment which includes the acquisition of 250 square kilometres of 3D seismic.

Following the initial exploration period the company will have the option to relinquish the PSC or commit to another two year program with the obligation to drill at least one well.

“We are delighted to add Block L15 to Dominion’s East Africa deep-water exploration portfolio, one of the most sought after addresses in the exploration industry these days,” Dominion chief executive Andrew Cochran said.

“The region is seeing both growing attention from, and accelerated activity by, major players with Kenya now due for deep-water drilling within the next year following the last year’s successes in Tanzania and Mozambique.”

Recent signing

The award follows the company’s recent signing of a PSC for Block L9 which lies on the same Davy-Walu structural trend as Block L15.

Only one well has previously been drilled on Block L15, Kofia-1 in 1985, which encountered good oil shows in the Palaeogene and Upper Cretaceous intervals.

Block L15 lies to the north of Block L8 where US independent Apache is planning to drill the Mbawa prospect next year which has been estimated to hold more than 1 billion barrels of recoverable oil.

Dominion also announced it had pulled out of a deal with Mediterranean Oil & Gas (MOG) which would have seen it gain a 75 per cent operated working interest in the PSC for Blocks 4, 5, 6 and 7 of Area 4, off the coast of Malta.

It said it was unable to complete the transaction due to the relevant resolutions not being passed at a special general meeting which was held last month.

Dominion will still pay MOG the $225,000 non-refundable deposit which was agreed upon when the deal was announced in June.

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