NAIROBI, (Xinhua) --
U.S.-based Oil and gas exploration firm, ERHC
Energy has completed its farm-out agreement with CEPSA, a
Spanish firm for an oil block located in northwest Kenya.
firm said in a statement on Wednesday it has sold a 55 percent
stake in Block 11A located in Turkana County to the Spain- based
energy company after getting approval from the government.
“CEPSA has acquired a 55 percent stake in Block 11A and will
operate the block in exchange for certain considerations. ERHC
retains a 35 percent interest in Block 11A,” ERHC said in a
statement on Wednesday.
government through, the State-owned National Oil Corporation of
Kenya, owns the remaining 10 percent.
ERTHC Energy said the parties will now proceed with a 2D seismic
survey of at least 1,000 line kilometers of Block 11A in
northwestern Kenya. BGP Kenya Ltd. will conduct the survey,
which is expected to begin this spring.
Block 11A which encompasses 11,950 square kilometers or 2.95
million acres, is oil and gas exploration block in northwestern
Kenya awarded to ERHC last year.
block is situated on the border of South Sudan to the north,
Block 11B and Lake Turkana to the east, and near Kenya’s border
with Uganda to the west.
“This is an excellent time for the entry of a renowned operator
like CEPSA,” said ERHC President and CEO Peter Ntephe.
“We have negotiated a mutually beneficial agreement that
advances Block 11A toward drilling and enhances shareholder
addition to its oil and gas exploration interests in Kenya, ERHC
holds interests in the Republic of Chad, the Sao Tome and
Principe Exclusive Economic Zone (EEZ) and the Nigeria-Sao Tome
and Principe Joint Development Zone (JDZ).
funding is expected to meet work requirements as per the
Production Sharing Contract (PSC) ERHC signed with the
government in 2013.
PSC states that the explorer has to conduct a seismic survey and
drill at least one well within two years from the June 28, 2012
move comes as the government announced plans to issue more
exploration licences for blocks in northern Kenya due to the
increased activities in search for oil by foreign companies.
Senior official at the Energy and Petroleum ministry Felix
Mutunguti reportedly said the government will hand over more oil
exploration blocks to potential investors and formulate policies
on sharing of revenue from the natural resource.
energy ministry will relinquish two blocks in covering more than
15,000 square kilometers in Wajir as the search for oil deposits
attracts more exploration companies.
2A block on offer measures 7,801 square kilometers while the 2B
block covers 7,806 square kilometers are both in Wajir County.