NATIONAL OIL CORPORATION OF KENYA AAPG Convention Denver, 7th – 10th June 2009 NATIONAL OIL CORPORATION OF KENYA National Oil Corporation of Kenya AON Minet House, 7th Floor Mamlaka Rd, Off Nyerere Rd P.O Box 58567 - 00200 Nairobi, Kenya Tel: +254 20 6952000 Fax: +254 20 6952300/400 E-mail: mdnock@nockenya.co.ke Website: http://www.nockenya.co.ke

Oil and Gas Exploration Opportunities in Kenya

PRESENTATION OUTLINE Kenya National Oil Corporation of Kenya Kenya Sedimentary Basins Kenya Petroleum Exploration Opportunities The Petroleum (exploration & production) Act Why Invest in Kenya

Kenya - Location Map

Kenya at a Glance Capital City: Nairobi Main seaport: Mombasa National language: Kiswahili Official language: English Population: 33.18 million (2004) Currency: (KSh.) GDP Growth rate : 6.1% (2006) Major GDP earners: Tourism, tea, horticulture, Coffee Location : East coast of Africa Government type: Democratic Rep. Size: 582,646 sq. km Religion: Christian 78%, Muslim10%, Others 12%

Nairobi is home to 2 of the busiest airports in Africa Air travel Kenya Airways: is the biggest airline in Eastern Africa is the sixth largest airline in Africa It is the natural connection hub in the region with regular flights to Asia, Middle East, Europe, West Africa and Southern Africa Operates more transcontinental flights than any of its African peers Codeshares with large international airlines such as KLM and Air France Nairobi is home to 2 of the busiest airports in Africa

National Oil Corporation of Kenya NOCK is State-owned oil Co. established in 1981 MANDATE Facilitate exploration and exploitation of petroleum resources on behalf of the Government. National data repository and an advisor to Government on Petroleum matters Commercial importation, distribution and exportation of petroleum products as a price stabilizer.

Kenya’s Sedimentary Basins 4 Basins totaling 399,519 sq km Divided into 36 blocks Average block size is 15,000 sq km Lamu - 169,121.9 sq km Mandera - 43,404.7 sq km Anza - 81,319.6 sq km Tertiary Rift - 105,673.8 sq km

Anza Basin Potential reservoir thickness:300-500metres Source rock: Lower Cretaceous Timing:trap formation from late cretaceous to Eocene, with hydrocarbon expulsion in Tertiary Tarry paraffinic oil associated with water recovered in a DST in Sirius-1 well Oil show/fluorescence and a gas flare from Aptian sands in Ndovu-1 well

Mandera Basin Permo-Triassic to Tertiary in age, thickness up to 10km Potential source rock interval in Mid Jurassic-Lower Cretaceous Marine origin source rock evidence from the Tarbaj oil seep analysis

Tertiary Rift Basin Consists of at least 9 sub-basins The Petroleum System of the Tertiary Rift is dependant on individual sub-basins. The basin is Oligocene to Pliocene in age Sediment thickness ranges up to 4 km Potential reservoirs with good porosity exist in sands Presence of hydrocarbons supported by oil recovered in Loperot-1 ~ 29o API Has 7 exploration blocks with 2 blocks awarded PSC NOTES Tertiary rift covers an area of 38,904 sq km and has sediment thickness up to 3 km and comprises of 9 sub-basin Source rocks are mainly Shales while reservoirs are sandstones.

Tertiary Rift Basin Loperot-1 Well Source Rocks: Shale Interval : 1050-1390m Age : Lower Miocene Environment : Lacustrine TOC : 1-17% RFT @ 1110.2m: 9.5 litres of oil & H2o recovered Oil Characteristics: Pour Point 450 C Low sulphur content (0.5%) 29.40 API gravity NOTES Tertiary rift covers an area of 38,904 sq km and has sediment thickness up to 3 km and comprises of 9 sub-basin Source rocks are mainly Shales while reservoirs are sandstones.

Lamu Basin Lies both onshore & offshore. Formed during the separation of Madagascar from Africa Sediments range in age from Upper Carboniferous to Recent Sediment thickness of up to 12 km The Tertiary section contains highly prospective source and reservoir units NOTES Potential Source Rocks – Middle to late Jurassic Turonian Campanian Paleocene Eocene (Kipini Shales) Reservoir Rocks Limestone Trapping Mechanism Faulted anticlinal structures Gas Potential in lamu Basin DST tested gas deposits of 3.1MCF/D in Dodori-1 well, 12.7MCF/D in Pandangua well & Pate-1 well

Paleogene Turbidite Plays Late Cretaceous to Tertiary turbidite sand bodies in 500-1800m water depths

Available Data Available data Includes; All the exploration data acquired since 1950’s well preserved. Available data Includes; Seismic data, Aeromagnetic and gravity data available at minimal charge. Core samples and drill cuttings available for analysis. Petroleum exploration reports Hydrocarbon potential packages in Data Centre

Kenya’s Exploration Opportunities 21 out of 36 exploration blocks are leased 15 exploration blocks are open

The Petroleum (Exploration & Production) Act, Cap 308, 1986 The Petroleum Act provides legal framework and regulates the negotiation and conclusion of Production Sharing Contracts (PSC) with potential investors. The PSC’s are subject to negotiations and are governed by The Petroleum Act, Cap 308, 1986 The petroleum (explo & Prod) Regulations The income tax (amendments) Act Environmental management & Coordination Act 2000 - NEMA

Production Sharing Contracts Work programme - Negotiable Exploration Period - Negotiable Acreage surrender - Negotiable Surface fees - Negotiable, Training fees - Negotiable Dev. & Prod. Period - Negotiable In case of discovery - Evaluation Program allowed

For Further Information Contact:: Managing Director National Oil Corporation of Kenya AON Minet Hse, Mamlaka Rd, Off Nyerere Rd P.O. Box 58567 – 00200 Nairobi, Kenya Telephone +254 20 6952000 E-mail: mdnock@nockenya.co.ke or explo@nockenya.co.ke Visit Website: http://www.nockenya.co.ke

END                                      Thank you