(Ecofin Agency) - Africa Oil Corp., has announced that an independent assessment of its contingent resources in the South Lokichar Basin situated in Blocks 10BB and 13T in Kenya, discovered estimated gross of 1.63 billion BO worth $73 billion in reserves.
According to the company, the amount is 26% higher than initially estimated.
“South Lokichar may contain as much as 1.63 billion barrels of gross oil contingent resources, an increase of 26 per cent (from previous estimates). The level of these resources gives us confidence that we will exceed the threshold required for development and we continue to push forward for development sanction during 2017,” Keith Hill president and CEO of Africa Oil said.
Energy Cabinet Secretary Charles Keter had earlier revealed that Kenya aims to produce oil in 2017.
However, the 1.63 billion bbls has not been confirmed as it is subjected to drilling. The unrisked amount, as at Tuesday was 766 million with 754 million barrels capable of being developed into usable oil.
“The estimated gross 2C unrisked resources in the South Lokichar Basin, Kenya have increased by 150 million barrels (or 24%) to 766 million barrels of oil (development pending: 754 million barrels and development unclarified: 12 million barrels),” said the company.
The areas set for drilling includes Ngamia, Amosing, Ekales, Etom, Twiga and Agete.
Ngamia has the largest amount with 296.7 million barrels, Amosing 151.1 million barrels while Ekales contains 104.5 million barrels, Business Daily reports.
Africa Oil has partnered with Tullow Oil in the discovery of over 600 million barrels of oil in the region.
Companies exploring the north of the country have reported mixed results in the past.
As a matter of fact, Tullow had announced in 2015 that no hydrocarbon worth exploring further at a frontier, or wildcat well in northern Kenya was discovered. Meanwhile, in March, the company announced that it has made the most significant discovery in the Kerio Valley basin in northern Kenya.