BG Group has signed Production Sharing Contracts with the Government of Kenya for two offshore exploration blocks - L10A and L10BBG Group has signed Production Sharing Contracts with the Government of Kenya for two offshore exploration blocks - L10A and L10B
BG Group will be operator on both blocks and will hold a 40 per cent equity interest in block L10A and a 45 per cent interest in block L10B. The initial work programme consists of a commitment to acquire seismic data during an initial exploration period of two years.
Blocks L10A and L10B together cover an area of more than 10,400 sq km in the southern portion of the Lamu Basin, offshore Kenya, located in water depths ranging from around 200m to in excess of 1,900m.
BG Group Executive Vice President and Managing Director, Africa Middle East & Asia, Sami Iskander, said, "BG Group looks forward to working with our partners and the Kenyan Government to play an active role in the exploration for oil and gas offshore Kenya."
Work programme
BG is taking a 40 per cent slice in the former block with a 45 per cent cut in the second. L10A also has Cove as a 25 per cent investor, Premier with a 20 per cent cut and Pancontinental holding the balance of 15 per cent. The other block sees Premier land a one-quarter grab with Cove and Pancontinental each taking 15 per cent.
The initial work programme consists of a commitment to acquire seismic data during an initial exploration period of two years with a BG spokesperson saying the company hopes to begin seismic operations at the end of this year or beginning of next.
“[BG] will have a minimal footprint, at least in the initial exploration phase,” the spokesperson said, adding the contracts represented the company’s entry to the Kenyan market.
