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TKL Traka Resources Limited

0.001
0.00 (0.00%)
16 Jun 2024 - Closed
Delayed by 20 minutes
Share Name Share Symbol Market Type
Traka Resources Limited ASX:TKL Australian Stock Exchange Ordinary Share
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.001 0.001 0.002 0.00 01:00:00

Total Looking to Explore Oil in Kenya - Kenyan Government

09/08/2011 6:26pm

Dow Jones News


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A unit of French oil giant Total SA (TOT) is pursuing oil and gas exploration in Kenya, a top Kenyan official said Tuesday, marking the latest sign of the East African country's rise as an international petroleum prospect.

Total Kenya Ltd has shown early interest in exploring oil in Kenya, said Martin Heya, Kenya's commissioner for petroleum. Heya said the company approached the Kenyan government in May about a specific block, and Total is waiting for the government to survey the block and negotiate.

A Total spokeswoman declined comment, but said it's normal for Total SA to look at opportunities in place where it hasn't yet explored.

Total's approach comes as Kenya attracts increasing interest from international oil giants in light of its proximity to other hot East African countries that have seen major oil and gas discoveries in recent years.

Africa is never an easy place to operate, given challenges of weak infrastructure and a reputation for corruption. But oil companies continue to view African countries - and increasingly, the relatively unexplored Kenya - as good options for new drilling.

In May, BG Group Plc (BG.LN) signed production sharing agreements on two offshore blocks in Kenya, covering an area of 10,400 square kilometers in the Lamu basin. Tullow Oil PLC (TLW.LN) will start drilling in the fourth quarter of 2011. U.S. independent Anadarko Petroleum Corporation (APC) also has a big presence.

Nick Copeman, an analyst at Oriel Securities, said Kenya could be especially well positioned if there is success in neighboring Tanzania.

Despite the race from companies to gobble up acreage in Kenya, companies say it's too early to tell how much oil Kenya could hold. Heya described the current scramble for oil in Kenya as unprecedented. Kenya doesn't currently produce oil.

Andrew Cochran, the chief executive of London-listed Dominion Petroleum (DPL.LN), said Dominion has been in talks with other companies interested in joining its Kenya venture, but that the company is still in early stages. Dominion will sign its second exploration agreement with the Kenyan government in the next six weeks, but it won't start drilling until it acquires seismic data.

Founder Hassan Hassan of British Columbia-based Simba Energy, which last week joined the growing number of companies exploring in Kenya, said there's huge opportunity because some of its geology in Kenya mirrors that of Uganda, which has quickly risen following high-profile discoveries.

- By Jenny Gross, Dow Jones Newswires; +27 11 784-8347; jenny.gross@dowjones.com

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