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Australia’s Origin Energy agrees to six-month extension to its production sharing contracts in Kenya


Origin operates both blocks on behalf of two joint ventures.

Published Aug 6, 2008
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Kenya has granted Australia’s Origin Energy a six-month extension to its production sharing contracts for Blocks L8 and L9 in the offshore Lamu Basin so that the operator can undertake further exploration work.

Origin operates both blocks on behalf of two joint ventures. It now has until 21 January 2009 to commit to the second stage of development of the acreage, which requires the drilling of at least one exploration well on Block L8 and further 3D seismic work on Block L9 within a year.

Under its farm-in agreement with its partners, Origin is required to fund all costs for this work. Both joint ventures comprise: Origin Energy (75%), Pancontinental Oil & Gas (10%) and Afrex (15%).

Origin said the Mbawa prospect on Block L8 is estimated to contain more than 1 Bn bbl of recoverable oil.