Mlima-1, the well in the Lamu Oil Basin, off Kenya’s Indian Ocean coast recently touted as the country’s first offshore oil strike, is commercially unviable.
Results of the exploration released by Italian energy group Eni, show that the well proved nonviable and was to be “plugged” and “abandoned,” after it failed to hit commercial oil reserves.
Geological and seismic surveys show that between 4 billion and 4.5 billion barrels of oil could be laying deep under the waters of the Indian Ocean. Early data had indicated the existence of oil reserves, what is technically referred to as ‘‘an active petroleum system’’ in the area.
The Eni well is located approximately 170km from the coast, underneath the ocean seabed where Eni has been prospecting and drilling for oil. Eni’s drillship, SAIPEM 12000, has been on location within Block L11B since late December 2021.
The basin lies within the disputed territory with Somalia that has been the cause of a diplomatic case between the two countries.
The well in the Lamu Basin had been widely tipped to offer Kenya another chance at becoming an oil producer, a decade after Tullow Oil made Kenya’s first oil find in Turkana County’s South Lokichar sub-basin, which is yet to be commercialised.
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