Quest for oil to start in Kenyan Coast

An Australian oil company will start a search for oil at Kenya’s coastline late this year.Australia's Pancontinental Oil and Gas will begin seismic surveys on two blocks off the Kenyan coastline.

Kenya has no proven oil reserves but interest in the hydrocarbon potential of the East African region has shot up in recent years after gas discoveries in Tanzania and Mozambique and billions of barrels of oil in Uganda.

Pancontinental and partners holds exploration licenses for four blocks off Lamu.

The company said 3D and 2D marine seismic surveys will commence late this year on blocks L10A and L10B and the exercise will be completed by mid-2012.

"The aim of the surveys is to identify the most prospective prospects for drilling. Two wells are required under the licenses in the second exploration period commencing in August 2013," Pancontinental said in a statement.

The Australian firm's joint partners in the two blocks include BG Group Plc, Premier Oil Investment and Cove Energy Plc.

"We have been surprised by the diversity and size of the leads and plays identified in the operator's initial review of L10A and L10B," Barry Rushworth, Pancontinental's chief executive said, referring to analysis of past data gathered from the blocks.

-Reuters