Kenya has extended exploration contracts of Zarara Oil and Gas ltd for blocks L4 and L13 in Lamu basin by 18 months to December 2018. The extensions of production sharing contracts (PSCs) of onshore and offshore acerages will enable Zarara to drill Pate-2 and Pate-3 wells of natural gas to be used for generation of power for injection into Kenya's national grid.
Zarara a subsidiary of Midway Resources International (MRI) was granted by the Energy Ministry on May 24, 2017 PSCs extension to December 2018 as first additional exploration period of 18 months expired on June 3rd 2017. MRI's chairman Mr. Mark Bristow said extensions will enable Zarara to drill to the Pate-2 and Pate-3 wells in natural gas discovery in Lamu county where Pate-1 well drilled in 1071 by Shell/BP encountered the fossil fuel. 'Pate campaign is currently at an advanced stage of preparation with mobilization of initial preparatory site civil engineering expected in July and spudding (starting drilling) of first well will be before end 2017,' he said.
Zarara owns 75 per cent equity in block L4 and L13. Swiss Oil Holdings International (SOHI) Ltd has 15 per cent stake and National Oil Corporation of Kenya (NOCK) holds 10 per cent carried interest of the government. Building of 1,000 megawatts coal fired plant in Lamu has been opposed by residents due to fears of pollution. Natural gas as a clean source of energy is globally used for power generation, fueling vehicles and other applications.