Britain’s Tullow Oil strikes second oil basin in Kenya

Britain’s Tullow Oil has said it made an oil discovery in Kenya which could potentially open up a second oil basin for development in the country.

Kenya and neighboring Uganda have both made oil finds that have yet to start commercial production.

The discovery comes as low oil prices prompt international oil firms to reduce spending on exploration and development.

Tullow is working with partners Africa Oil and A.P. Moller-Maersk to develop finds in northwest Kenya, where recoverable reserves have been put at an estimated 600 million barrels.

“The first well in the Kerio Valley Basin, Cheptuket-1, has encountered good oil shows across a gross interval of over 700 metres,” Tullow said in a statement about the new find.
“We believe this encouraging initial result has the potential to open up a second prolific basin in Kenya,” it said, although it added that the pace of follow-up activity was “set to be modest”.