Apache Corp. (APA) will drill Kenya's first deepwater oil well next month, a prospect that could add a $70 billion crude find to the record natural-gas discoveries along East Africa’s coast.
East Africa has become one of the world's most active exploration areas since Anadarko Petroleum Corp. (APC) made the decade's biggest gas discovery off Mozambique. An oil find would be a boon for Kenya as the commodity is easier to sell than the gas found in neighboring Tanzania and Mozambique, which will require spending at least $50 billion on export plants. The Lamu basin, where Mbawa is sited, may hold as much as 5 billion barrels, according to one of the well’s partners.
"Exploration of East Africa is at a very, very early stage, and yet success so far has been very significant," Andrew Whittock, a London-based analyst at Liberum Capital Ltd., said by phone. "Most industry is following behind and trying to establish positions.". . .View Full Article