4th Eastern Africa Oil, Gas & Energy Conference 18 – 20 June 2013
Kenya will host the 4th Eastern Africa Oil and Gas Conference major regional energy conference from June 18th to 20th at the Intercontinental Hotel in Nairobi. There is a 10% discount if you book before 29 Apr 2013. The conference will discuss the opportunities, acreage, key players and corporate and government strategies for oil, gas and other energy sources in this region. Register for the event here.
The conference will showcase the regional oil, gas and energy sector in over a dozen states: Kenya, Tanzania, Uganda, Rwanda, Burundi, DRC, South Sudan, Ethiopia, Zambia, Eritrea, Somaliland, Seychelles, Madagascar and Mozambique. The 14 states in the region are diverse in scale, resource potential, contract terms, and venture-types and in regard to exploration cycles and hydrocarbon discoveries. This year’s conference comes on the heels of recent oil discovery in Eastern Africa countries. You can view the program of events here.
Earlier in the year, Kenya gazetted five new crude oil and gas exploration areas and offered them to prospecting firms through competitive bidding. The five new blocks will increase Kenya’s exploration areas to 51 from the current 46. Of the 46, only one is yet to be leased out after negotiations for a production sharing contract between Kenya and Statoil of Norway failed in December. With the Ministry of Energy’s one off fee of $1 million per exploration area, Kenya will pocket at least Ksh425 million ($5 million) from the sale of the five blocks.
It will be the first time Kenya will be allocating oil and gas blocks through an auction, one of the changes introduced in the new rules, requiring that acreage is awarded to the highest bidder who offers the best terms to the government and agrees to pay requisite fees. The regulations, being rolled out this year, sharply increase licensing fees and introduce tough penalties on exploration schedules. Other changes include more royalties, increased taxes and revoking of mining and exploration licences of companies that do not keep to their exploration schedule, as the country sought a bigger slice of the profits from a boom in the oil, gas and minerals exploration business. Anadarko Petroleum Corporation had indicated it would from January 3, 2013 sink two oil and gas (hydrocarbons) offshore wells in Lamu, on the Coast of Kenya.
Kenya expects drilling of eight more wells later in the year as Vanoil Energy, BG Group, Afren Plc, Ophir Energy and Africa Oil Corporation among other firms intensify search for hydrocarbons in what oil and gas experts said could greatly transform global energy flows. Analysts, led by Australian consulting firm Hartleys, project that drilling activity will rise in offshore Kenya with up to 10 wells expected in 2013.
According to Dr Duncan Clarke, Chairman of Global Pacific & Partners,
“Recent large and world-class gas discoveries in Mozambique and Tanzania, with potential for more to come, and commercial oil flows in Kenya, show the potential of the enormous exploration frontiers of Eastern Africa, both onshore and offshore. The new discoveries will add substantial net wealth to Eastern Africa’s littoral states where they are located, and induce higher economic growth rates and regional development.”
The on and offshore potential includes exclusive economic zones, deepwater opportunities and ultra-deep plays. As a result of these developments, increasing numbers of companies have entered open acreage and bid rounds, and more blocks have been leased than ever before, with more drilling commitments concluded.
Foreign state-owned companies like CNOOC and PTTEP have invested in Eastern Africa while Super-Majors (Total, Exxon Mobil, Chevron, Shell and BP) have shown renewed interest, and Independents from around the world now abound. Eastern Africa’s renaissance is truly reshaping the oil and gas landscape.
Full story Kenya to Host Regional Oil Symposium
Courtesy of PlusKenya.