AAPG Convention San Antonio 20 th 23

AAPG Convention San Antonio, 20 th – 23 rd April 2008 NATIONAL OIL CORPORATION OF KENYA National Oil Corporation of Kenya AON Minet House, 7 th Floor Mamlaka Rd, Off Nyerere Rd P. O Box 58567 - 00200 Nairobi, Kenya Tel: +254 20 6952000 Fax: +254 20 6952300/400 E-mail: mdnock@nockenya. co. ke Website: http: //www. nockenya. co. ke

Oil and Gas Exploration Opportunities in Kenya

PRESENTATION OUTLINE • Kenya • National Oil Corporation of Kenya • Kenya Sedimentary Basins • Kenya Petroleum Exploration Opportunities • The Petroleum (exploration & production) Act • Why Invest in Kenya

Kenya - Location Map

Kenya at a Glance Capital City: Main seaport: National language: Official language: Population: Currency: GDP Growth rate : Major GDP earners: Location : Government type: Size: Religion: Nairobi Mombasa Kiswahili English 33. 18 million (2004) (KSh. ) 6. 1% (2006) Tourism, tea, horticulture, Coffee East coast of Africa Democratic Rep. 582, 646 sq. km Christian 78%, Muslim 10%, Others 12%

Air travel Nairobi is home to 2 of the busiest airports in Africa

National Oil Corporation of Kenya • NOCK is State-owned oil Co. established in 1981 MANDATE • Facilitate exploration and exploitation of petroleum resources on behalf of the Government. • National data repository and an advisor to Government on Petroleum matters • Commercial importation, distribution and exportation of petroleum products as a price stabilizer.

Kenya’s Sedimentary Basins • 4 Basins totaling 399, 519 sq km • Divided into 36 blocks • Average block size is 15, 000 sq km • Lamu - 169, 121. 9 sq km • Mandera - 43, 404. 7 sq km • Anza 81, 319. 6 sq km - • Tertiary Rift - 105, 673. 8 sq km

Anza Basin • Potential reservoir thickness: 300 -500 metres • Source rock: Lower Cretaceous • Timing: trap formation from late cretaceous to Eocene, with hydrocarbon expulsion in Tertiary • Tarry paraffinic oil associated with water recovered in a DST in Sirius-1 well • Oil show/fluorescence and a gas flare from Aptian sands in Ndovu-1 well

Mandera basin Permo-Triassic to Tertiary in age, thickness up to 10 km Potential source rock interval in Mid Jurassic-Lower Cretaceous Marine origin source rock evidence from the Tarbaj oil seep analysis

Tertiary Rift Basin • Consists of at least 9 sub-basins • The Petroleum System of the Tertiary Rift is dependant on individual sub-basins. • The basin is Oligocene to Pliocene in age • Sediment thickness ranges up to 4 km • Potential reservoirs with good porosity exist in sands • Presence of hydrocarbons supported by oil recovered in Loperot-1 ~ 29 o API • Has 7 exploration blocks with 2 blocks awarded PSC

Tertiary Rift Basin Loperot-1 Well Source Rocks: Shale Interval: 1050 -1390 m Age: Lower Miocene Environment: Lacustrine TOC: 1 -17% RFT @ 1110. 2 m: 9. 5 litres of oil & H 2 o recovered Oil Characteristics: • Pour Point 450 C • Low sulphur content (0. 5%) • 29. 40 API gravity

Lamu Basin • Lies both onshore & offshore. • Formed during the separation of Madagascar from Africa • Sediments range in age from Upper Carboniferous to Recent • Sediment thickness of up to 12 km • The Tertiary section contains highly prospective source and reservoir units

Paleogene Turbidite Plays Late Cretaceous to Tertiary turbidite sand bodies in 500 -1800 m water depths

Available Data All the exploration data acquired since 1950’s well preserved Available data Includes; i. Seismic data, Aeromagnetic and gravity data available at minimal charge. ii. Core samples and drill cuttings available for analysis. iii. Petroleum exploration reports iv. Hydrocarbon potential packages in Data Centre

Kenya’s Exploration Opportunities • 13 out of 36 exploration blocks are leased • 23 exploration blocks are open

The Petroleum (Exploration & Production) Act, Cap 308, 1986 The Petroleum Act provides legal framework and regulates the negotiation and conclusion of Production Sharing Contracts (PSC) with potential investors. • The PSC’s are subject to negotiations and are governed by ü ü The Petroleum Act, Cap 308, 1986 The petroleum (explo & Prod) Regulations The income tax (amendments) Act Environmental management & Coordination Act 2000 - NEMA

Production Sharing Contracts • • Work programme Exploration Period Acreage surrender Surface fees Training fees Dev. & Prod. Period In case of discovery - Negotiable, Negotiable Evaluation Program allowed

For Further Information Contact: : Managing Director National Oil Corporation of Kenya AON Minet Hse, Mamlaka Rd, Off Nyerere Rd P. O. Box 58567 – 00200 Nairobi, Kenya Telephone +254 20 6952000 E-mail: mdnock@nockenya. co. ke or explo@nockenya. co. ke Visit Website: http: //www. nockenya. co. ke

Asante sana!