Seismic surveys in the area claimed by both Somalia and Kenya in the Indian ocean have failed to strike oil deposits in the disputed area. Seismic surveys at Mlima-1 well, which is known as Block L11B in the Lamu Basin, revealed that the wells were dry, ending a 10-year search for oil in the coastline that had emerged as one of the world’s hottest exploration prospects.
Energy and Petroleum Regulatory Authority (Epra) had given the rights to explore for oil deposits to ENI Kenya Business Venture (BV), formerly Agip in 2012 amid protests by Mogadishu. Somalia accused Kenya of auctioning its oil blocks and subsequently sued the Kenyan government to the International Court of Justice.
The Hague based court decided mostly in Somalia’s favor, a decision that was vehemently rejected by Nairobi. Subsequently, Kenya ramped up its exploration activities in the disputed area despite condemnation by the United Nations over the ownership of the 100,000 kilometer squared territory off the Eastern coast of Africa then believed to harbour oil, natural gas and mineral reserves.
Nairobi had accused the UN court of bias and resolved to hold on to the disputed territory by all means not letting go of even a single inch of the territory. This sparked a diplomatic tiff between the two neighbors that culminated in Kenya recalling its Ambassador to Mogadishu and expelling his Somali counterpart two years ago.
Prospects of Kenya becoming an oil producing country had soared when the first find in Turkana was struck with many more expected to be struck particularly at the coastal strip. Kenya’s quest to produce oil are dampening with now remaining with only three potential oil blocs in basins in Anza, Mandera and Tertiary Rift Basin keeping in mind that the oil in Turkana is yet to be fully commercialized.
Tullow in October last year presented a revised development plan for oil production in South Lokichar Basin. But approval of the plan delayed after the lapse of the term of the 12th Parliament that was expected to debate and approve it.The plan is now targeted for approval before end of the current financial year in what offers Kenya a fresh opportunity to become an oil exporter.
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