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D. R. O. Riaroh Chief Geologist Ministry of Energy REPUBLIC OF KENYA

Petroleum Exploration in East Africa 10 th Africa Oil & Gas, Trade & Finance Conference and Exhibition ALGIERS, ALGERIA, 2 ND - 5 th April 2006. D. R. O. Riaroh Chief Geologist Ministry of Energy REPUBLIC OF KENYA. NOT AN OFFICIAL UNCTAD RECORD. Contents. East Africa at a Glance

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D. R. O. Riaroh Chief Geologist Ministry of Energy REPUBLIC OF KENYA

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  1. Petroleum Exploration in East Africa10th Africa Oil & Gas, Trade & Finance Conference and Exhibition ALGIERS, ALGERIA, 2ND - 5th April 2006 D. R. O. Riaroh Chief Geologist Ministry of Energy REPUBLIC OF KENYA NOT AN OFFICIAL UNCTAD RECORD

  2. Contents • East Africa at a Glance • Petroleum Exploration History • Exploration status • Attractiveness of the Regions Petroleum Potential • Sedimentary Basins of East Africa • Incentives • Conclusion

  3. East Africa at a Glance • Land Area: 1,768,771 Km2 • Population: 94 million Approx. • Growth Rate: 6% p.a Approx. • Currencies: Respective Country Shilling • Official Lang: Kiswahili & English • Main Exports: Tea, Horticultural Products, Coffee, Pyrethrum, Soda Ash, Minerals • Capital Cities: Nairobi (Kenya) Kampala(Uganda) Dodoma (Tanzania) • Principal Ports: Mombasa, Dar es Salaam and Tanga

  4. Petroleum Exploration History • The first Exploration Licence issued to D’arcy in 1933 in Lamu Embayment near Mombasa in Kenya. • Second Licence signed between the Govt. of Uganda and Africa European Investments Co. of South Africa in 1935. Drilled first well (Waki-1) near Butiaba in East Africa in Albertine Graben. • First Licence in Tanzania issued to Shell & BP in 1952

  5. Exploration Status • Kenya Offshore - 4 blocks under Licence 1 well planned Onshore - Intense interest 10 pending applications/under negotiatons

  6. Cont.. • Tanzania Offshore – 6 blocks under Licence _ 6 under negotiations - 2 wells planned Onshore 3 licenses Drilling & Development of Mnazi Bay Gas

  7. Cont.. • Uganda Onshore: Several licenses in the Albertine &3 wells drilled • Seismic surveys undertaken recently and more planned • Promotional and licensing rounds planned • East African Petroleum Conference’07

  8. Attractive legal and fiscal regimes. Negotiable Production Sharing Contract Terms: Exploration and Production periods Cost Oil Recovery Profit Oil Splits Surface Rental Fees Training Fees etc. Attractiveness of the Regions Petroleum Potential

  9. Attractive Geology Good Source Rocks Excellent reservoirs Working Petroleum systems gas discoveries (Songo songo, Mnazi bay) oil seeps (Pemba, Wingayongo-Tz, Butiaba in semliki, Ug and Tarbaj, Kenya) Gas blow outs (Pate well ,Kenya) Tar sands in Tarbaj (cf, Madagascar, Ethiopia-Tsimororo) Good traps Cont….

  10. Sedimentary Basins of East Africa • East Africa has total Sediment cover of 680,814 square kilometres. • Sediment thickness upto 12000 metres. • Total seismic 85,890 line km • Total wells drilled over 60 • The following table Provides detailed data on the Sedimentary Basins

  11. Basin Types 1. Coastal Basins • Selous, Ruvu, Mandawa, Ruvuma of Tanzania • Lamu Embayment of Kenya

  12. 2. Rift Basins The Karoo basins- Late Carboniferous to Triassic. Characterised by Continental clastic sediments, Fluvial and Deltaic Deposits with occasional marine incursions Cont.

  13. Central African Rift System-Cretaceous Anza Graben in Kenya. Comprises essentially fluvial lacustrine and deltaic deposits. East African Rift Basins – Tertiary Albertine Graben in Uganda and Kenya Rift basins. Characterised by fluvio-lacustrine sediments. Contd..

  14. 3. Intra Cratonic Basins : Stable crustal basin i.e in Uganda Lake Victoria basin Contd..

  15. PETROLEUM PROSPECTS OFF-SHORE LAMU

  16. TUMBUSI STRUCTURAL LEAD – BLOCK L-10 Tumbusi

  17. MANDAWA PROSPECT

  18. KISEGI FORMATION ALBERTINE GRABEN

  19. ALBERTINE GRABEN

  20. Exemption from payment of Customs Duty, VAT and Import Duties, and Levies on Capital Equipment and Goods for Petroleum Operations Accessibility to Land Protection of Foreign Investments Security of contract Early recovery of investment Incentives

  21. Low Government take adequate return on Investment to the contractor provide the Government with a fair share of income Negotiable terms. Advance knowledge of terms for exploration and production Government’s portion of Profit Oil is inclusive of all taxes to be paid by the contractor. Capital Depreciation - 5years. Allowable deductions. No Ring fencing. Allows a Contractor to offset exploration and development expenditures for new fields against taxable income from producing fields. Deficit carry over. Cont…

  22. Conclusion • Why East Africa? Because it is Elephant Country.

  23. THANK YOU FOR YOUR ATTENTION !!!

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