Kenya is a very attractive country for oil and gas exploration and as a key energy consumer. In East Africa, including Kenya, offshore exploration work is being aggressively pursued by a number of major international companies.
Major gas discoveries and one oil discovery have been made south of Kenya, offshore Mozambique and Tanzania, totaling more than 170 Trillion Cubic Feet ( Tcf) and drilling activity continues unabated. Kenya itself currently has no indigenous oil or gas production.
A number of oil discoveries have recently been made onshore Kenya.
Offshore, the Mbawa Gas Discovery (2012- Pancontinental 15%) and recent oil shows elsewhere while drilling have established the existence of oil and gas systems.
Kenya has a need to reduce its energy imports by converting its oil-fired electricity generators to indigenous clean gas. Its proximity to the expanding energy markets of East Africa and the Asian sub-continent mean there are additional markets available for immediate product uptake.
Offshore Kenya has become very active for oil exploration, with the entry of major companies including BG Group, Apache, Tullow, Total, ENI and Anadarko; some of these are Pancontinental's partners through farmin and in new projects.
Pancontinental entered Kenyan offshore exploration as a result of having identified the oil potential in the restricted depositional environment in the Tana River Delta (see diagrams).
Pancontinental holds interests in four licence areas offshore Kenya totalling 20,672 square kilometres.