National Oil Corporation of Kenya Oil and Gas Potential in Kenya American Association of Petroleum Geologist Annual Convention 9th –12th April 2006 Houston, USA National Oil Corporation of Kenya National Oil Corporation of Kenya

National Oil Corporation of Kenya KENYA AT A GLANCE Social: Government type: Democratic Rep. Size: 582,646 sq. km Religion: Christian 78%, Muslim10% others 12% Capital City: Nairobi Main seaport: Mombasa National language: Kiswahili Official language: English Economic: Population: 31.5 million (2003) Currency: (KSh.) GDP per capita: US$. 322 Major GDP earners: Tourism, tea, horticulture, Coffee National Oil Corporation of Kenya

KENYA SEDIMENTARY BASINS NOTES Kenya has 4 sedimentary basins Onshore 1. Anza Basin 2. Mandera basin 3. Tertiary Rift Offshore 1. Lamu National Oil Corporation of Kenya

Kenya Geophysical Database Pre-existing Data 2D Seismic Onshore : 39,298 km Offshore : 25,552 km Aeromag : >268,00 km Gravity : 12,313 km Recent Activity 2003/04 7,884km 2D Seismic 2004/05 3,600 2D Seismic National Oil Corporation of Kenya

OIL EXPLORATION HISTORY 1950’S - Oil exploration commenced 1960 to 1984 - 16 wells drilled mainly in the Lamu and Anza basins 1981- NOCK was incorporated in 1981 1984 GOK enacted new Petroleum (Exploration and Production) Act. 1986 Petroleum (E & P) Act revised. Royalties replaced by PSC’s 1985 to 1992 - Further 14 wells drilled 1995 - Lamu Basin Study completed. 2001 - Tertiary Rift Study complete 2000+ - Award of offshore PSC’s and reinvigorated exploration NOTES To date 30 deep wells drilled No commercial discovery but encouraging oil and gas shows in some wells Woodside Energy Petroleum, Dana, Afrex/Pan. Companies have a concession in offshore Kenya. 2D seismic survey completed by Woodside in October 2003 and 2004/2005 Offshore drilling in 2005/2006 National Oil Corporation of Kenya

National Oil Corporation of Kenya

National Oil Corporation of Kenya EXPLORATION DRILLING Anza Basin – 10 Wells Tertiary Rift Basin –2 wells Mandera Basin – 2 wells Lamu Basin – 16 wells National Oil Corporation of Kenya

Kenya Geophysical Database Pre-existing Data 2D Seismic Onshore : 39,298 km Offshore : 25,552 km Aeromag : >268,00 km Gravity : 12,313 km Recent Activity 2003/04 7,884km 2D Seismic 2004/05 3,600 2D Seismic National Oil Corporation of Kenya

HYDROCARBON POTENTIAL Sedimentary Basins Basin Area km2 Wells drilled Aver. Sediment thickness Lamu 132,770 16 12,000 m Mandera 51,920 2 10,000 m Anza 94,220 11 Tertiary Rift 38,904 4,000 m National Oil Corporation of Kenya

National Oil Corporation of Kenya ANZA BASIN NOTES Part of Central African Rift System . Sediments range from U. Jurassic - Cretaceous to Tertiary. Sediments: fluvio-deltaic with intermittent volcanics. Source rock potential is mainly dated Early to Late Cretaceous in SIrius well Some oil shows in Ndovu-1 and Sirius-1 Wells . There is a possible correlation between the Anza basin and the Muglad and Melut basins of southern Sudan where oil has been discovered making the Anza basin highly prospective. Anza Anza Basin National Oil Corporation of Kenya

HYDROCABON OCCURANCES IN ANZA BASIN Lower Cretaceous Clastics flowed gas during DST (Ndovu-1 well) Tarry oil associated with water in Sirius-1 well Gas shows in Lower Cretaceous sands Oil shows/flourecence/staining in aptian sands in Ndovu-1 well Oil shows in: paleogene in Hothori-1 well Miocene to Cretaceous in Chalbi-3 well National Oil Corporation of Kenya

National Oil Corporation of Kenya MANDERA BASIN Surface Geology of the Mandera Basin Failed Rift system Permo-Triassic to Tertiary in age Sediment thickness ~ 10km Presence of hydrocarbons supported by > 200m thick sand impregnated with biodegraded asphalt NOTES Hydrocarbon potential of Mandera Potential source Rocks: shales and marine limestone Reservoirs: marls, claystones & mudstones interbedded with the carbonates & tidal channel sandstones and siltstones Trapping Mechanism: Anticlinal Faults National Oil Corporation of Kenya

TERTIARY RIFT BASIN(s) Consisting of at least 9 sub-basins Oligocene to Pliocene in age Sediment thickness up to 3 km Potential reservoirs: up to 40% porosity in sands (Loperot-1 well) Presence of hydrocarbons supported by oil recovered in Loperot-1 ~ 29o API 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. National Oil Corporation of Kenya

National Oil Corporation of Kenya STRUCTURAL SETTING LOPEROT-1 500 1000 1500 2000 2500 3000 3500 4000 W LOKICHAR BASIN TVK-13 TVK-12 KERIO BASIN NE BASEMENT MIDDLE MIOCENE LOKICHAR FAULT LOKONE FAULT LATE MIOCENE TO QUATERNARY EARLY TO MIDDLE MIOCENE LOKONE SHALES PALEOGENE TO EARLY MIOCENE V LAVA FLOW LATE MIOCENE TO PLIOCENE ? EARLY TO MIDDLE National Oil Corporation of Kenya

LOPEROT-1 WELL GEOLOGICAL COLUMN Drilled by Shell in 1992 Encountered excellent Tertiary reservoirs Found source rocks with up to 7% Total Organic Carbon Tested oil ~ 29o API NOTES This well was drilled by Shell in 1992 and it encountered non-commercial deposits of oil in the Tertiary section Potential reservoirs in the well had porosity UP TO 30% Potential source rocks had up to 17% TOC (Total Organic Carbon) National Oil Corporation of Kenya

National Oil Corporation of Kenya 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 National Oil Corporation of Kenya

REGIONAL STRUCTURAL SETTING Tertiary Cretaceous Jurassic Triassic 8km W E SIMBA-1 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 National Oil Corporation of Kenya

LAMU BASIN EXPLORATION POTENTIAL WELL DEPTH (M) RESULTS Simba-1 3604 Gas show 0.7% C1 Kofia-1 3629 Oil show at 1740 M. And Gas show Kipini-1 3663 TOC 1.1% Pate-1 4188 TOC 2% Maridadi 4197 Oil show at 3660M Gas and oil shows Multiple tectonic trends with large faulted 4-Way dip closures off shore Oil potential includes multiple petroleum systems ranging from Tertiary to Triassic National Oil Corporation of Kenya

KENYA – FRONTIER INVESTMENT Political stability with positive investment climate Large frontier (Onshore/Offshore) acreage Competitive commercial terms Acceptable balance of risk/reward. Previous exploration data readily available. Low entry cost, no signature bonuses Award focuses on work programme Provides investor with growth opportunities National Oil Corporation of Kenya

National Oil Corporation of Kenya PSC Legal Regime Dev. & Prod. Period -negotiable Acreage surrender -negotiable Surface fees -negotiable, Training fees -negotiable Natural gas discovery -Negotiate terms with Government Initial Exploration Period - with 2 automatic additional Periods: - terms negotiable In case of disc. - field evaluation programme allowed National Oil Corporation of Kenya

FOR FURTHER INFORMATION Visit: Kenya Booth or Contact: Managing Director National Oil Corporation of Kenya. P.O. Box 58567 00200 Nairobi Telephone 254 20 6952000 E-mail mdnock@nockenya.co.ke National Oil Corporation of Kenya

National Oil Corporation of Kenya THE END THANK YOU National Oil Corporation of Kenya