Kisumu 31-01-2008
 
POLITICAL UNREST IN KENYA IS HAMPERING OIL EXPLORATION PROGRESS IN THE NEIGHBOURING UGANDA

By Leo Odera Omolo
 
INFORMATION emerging out of the Ugandan capital, Kampala says that a London Based oil giant company Tullow Oil PLC will invest USD 200 million in Lake Albert Rift basin this year
 
The Oil and gas exploration company last week released a brief of its trading statement for its 2007 financial year, which says that the investment programme will include onshore and offshore drilling, seismic surveys and the anticipated sanction of an early production system
 
The brief was released a head of the groups full year results which are scheduled for release in March.
 
“ Tullow continues to experience material success in the Lake Albert Rift basin and had invested of USD 100 million in the year 2007 in exploration and appraisal activities”. The statement says.
 
“The understanding and confidence generated by our success to date has led to a plan to invest over USD 200 million in the Lake Albert basin in 2008. In Uganda, the statement went on, the Ngassa well is now expected to reach target depth in the late march following operational and logistical delays.
 
Butiaba, another multi-well programme is to commence in March 2008 on the Taitai Prospect project
 
“Significant progress has been made towards sanction of Uganda’s early production system targeting first oil in 2009. The extended reach well is being drilled under the lake from the shore by the Nabors 221 rig. The well is targeting several intermediate reservoirs and the primary objectives at a depth of between 3,000 and 4,000 metres “says the company briefing statement.
 
“ The well is currently at a, 400 metres and was originally schedules to take 110 days to reach the primary target. However these technical difficulties, combines with some supply disruptions, resulting from the ongoing unrest in Kenya, mean that the well is now not expected to reach the primary target until late in March 2008”
 
Tullow oil P/C is one of the largest independent oil and gas exploration companies in Europe. The group has 120 licences in 23 countries with operations in Africa, Europe, South Asia and South America.
 
In January 2007, Tullow completed the USD 595 million acquisition of Hardman Resources Ltd, which materially enhanced the company operations in Mauritania and Uganda and added high impact exploration licenced in South American.
 
Its current production is about 80,000 barrels per day. In 2007, the company drilled ever 40 wells, including multi- wells in Ghana and Uganda. The briefing statement quoted the firm’s Chief Executive Mr. Aidnan Heavy as saying that, during 2007, Tullow had experienced what the termed as “a transformation in its business driven by exceptional exploration success and supported by strong oil and gas pricing”
 
“Our priority for 2008 is to appraise both the Jubilee field in Ghana and the Lake Albert Rift Basin in Uganda while also testing the significant exploration potential of our portfolio, “Mr. Heavy added.
 
In August 2007, Tullow oil drilled and tested the Mputa- 3 appraisal well in Uganda, which the group operates with a 100 per cent interest. The well was drilled to a total depth of 973 metres and encountered hydrocarbons in three separate zones, one zone was tested and produced at an average rate of 1, 986 barrel of oil per day. The company also announced at around the same time that pressure and sampling data from the other two zones indicate that all three zones could flow at a combined rate of over 4,000 barrels of oil per day
 
The statement released this week said that in Uganda’s Butiaba region onshore 20 seismic data is being acquired.
 
“The Block 2 programme is 80 percent complete and has already identified numerous prospects some with amplitude effects characteristic of hydrocarbons”.
 
“These early results indicate considerably greater prospectively in the Butiaba region than in adjacent Kaiso- Tony area, Said the statement
 
ENDS
leooderaomolo@yahoo.com