Kenyans Cross Their Fingers As Company Searches for Oil
The Nation (Nairobi)
NEWS
December 25, 2006
Posted to the web December 26, 2006
By Sarah Kimani
Nairobi
The country's hopes of striking oil rests with 145 workers prospecting for it at
the Kenyan coast.
The engineers, geologists and marine experts are searching for oil while on a
ship off the Lamu Coast.
Kenya's hopes of striking oil rest with 145 Australian firm employees
prospecting for the mineral at the Coast.
The search has started at the Pomboo One well near the Kiunga Marine National
Reserve, 135 kilometres north east of Lamu.
The Woodside Energy workers are drawn from Japan, Canada, United States and
Europe.
Due to lack of expertise on oil drilling, there are only three Kenyans on the
ship; Navy officer Eliud Keter, maritime security advisor Conrad Thorpe, and
drilling engineer trainee Chris Kipchumba.
Members of the Kenya Navy provide security and surveillance services.
The drilling is conducted for 24 hours and workers in the ship are divided into
two shifts each working 12 hours.
This is the first search for DV Chikyu, said to be bigger than the legendary
Titanic.
All crew members spend 28 days on the vessel and break for a similar period.
The fully computerised ship has digital cameras that monitor every step of the
drilling.
Good sign
The vessel is believed to be the most advanced drilling ship.
The Austrarian firm's general manager Alex Taylor says with a 12 per cent chance
of striking oil, Kenya should count itself lucky noting that in the industry,
that was a good sign.
He, however, cautioned Kenyans that even if the resource is found, its
production would take longer because they would have to assess its commercial
viability.
"If we discover oil, we will inform the Kenyan Government and Kenyans, but we
will have to see if the amount we find is economically worth before starting
production," adds Mr Taylor.
He further notes that there are high risks in the oil business and that billions
of shillings invested in the project may go to waste if the company does not
discover oil or gas at the Coast.
On completion of the drill at Pomboo One, the vessel will sail to Sokwe, the
second well about 180 kilometres to north east of Malindi.
Oil exploration in Kenya has been dormant for over 25 years although it is
regarded as the most prospective part of the East African off shore area, due to
what experts term as a diverse geology that could hold significant gas and oil
resources.
"When we began work at Mauritania, chances stood at about eight per cent and now
their taps are flowing. Kenya's chances are higher but there is also a high
chance of failure," said the general manager.
Woodside Energy has exploration interests in 12 countries globally.
In Africa, the Australian company has been searching for oil in Libya for three
years and says the the North African country presents a lucrative market.
The firm also operates in Sierra Leone, Comoros Island, Algeria and Mauritania.
Environmentalists had raised concern that the exploration in the Indian Ocean
may damage marine life and pollute the environment, but the company said it had
complied with requirements by the National Environmental Management Authority (Nema).
It said that the environmental regulator had appraised at every stage of its
activities.
Says Mr Taylor: "We have submitted a comprehensive impact assessment report to
Nema and our activities have little risk of environmental impact on marine life
and plants during exploration."
Kenyans will be informed about all money earned from oil wealth if talks
initiated with a petroleum prospector succeed.
Made public
The Government has started talks with Woodside Energy on the Extractive
Industries Transparency Initiative that would ensure revenue received from oil
wealth is made public.
Under the initiative, Kenyans would also be consulted on how the money would be
spent.
We are very keen on becoming signatories to this initiative even before we
strike oil, National Oil Corporation of Kenya managing director Mary M'Mukindia
told the Nation.
She said 20 countries have signed into the deal and Kenya sees this as the best
way to break the oil curse that has led to the loss of lives in many African
countries.
"The advantage that we have as a country is that we are already thinking of how
to deal with the oil dollars even before we get oil," Mrs M'Mukindia said.
With four companies having pitched tent in the country searching for oil, a
number of Kenyans have expressed fear that the Government may short-change them
once the mineral is found.
"Issues of equitable distribution of resources are very sensitive and that is
why many countries break into civil wars whenever oil is found," Mrs M'Mukindia
adds.
Already, the Finance ministry has formed a committee chaired by investment
secretary Esther Koimett to advise Kenyans on how funds from the mineral, if
found, can be invested.
It comprises members from the oil corporation, Kenya Anti-Corruption Commission,
and the ministries of Justice and Energy .
The Australian company began the drilling in the Indian Ocean on December 2.
Since coming to the country, the firm's officials have held talks with over 250
government, non governmental and community organisations at the coast to
enlighten them about the exploration.
Sharing wealth
"We have held barazas with Sheikhs, Imams, local authorities, fishermen,
women's' groups and Members of Parliament. We want every Kenyan to know just
what we are doing," adds Mr Taylor.
During their meetings it emerged that most Coast residents had doubts on the
sharing of the oil wealth.
"There is fear that the Government will not share in the oil wealth. The
residents have been pointing out cases in Nigeria where oil is mainly seen as a
curse, saying there are better off without it," Mr Taylor added.
"We have, however, assured them that it really does not have to be that way," he
adds.
The Japanese vessel is expected to take at least 45 days in each of the two
wells where the search would be conducted.
"We believe that we can assess the potential of oil through the drilling of just
two wells," notes Mr Taylor.