By Ross Kelly
SYDNEY--A joint venture led by Apache Corp. (APA) has discovered
natural gas off the coast of Kenya, boosting hopes the East African
nation could have commercial reserves after big finds in nearby
Mozambique and Tanzania.
Smaller joint venture partner Pancontinental Oil & Gas NL
(PCL.AU) said the Mbawa-1 exploration well hit a net gas column of
about 52 meters. The well has only been drilled to a depth of 2,553
meters below the ocean floor and drilling will continue to a
planned total depth of 3,275 meters. A secondary exploration target
lies above the planned total depth, Pancontinental said.
Apache operates and owns 50% of the joint venture while
Australia's Origin Energy Ltd. (ORG.AU) owns 20%, Pancontinental
owns 15% and Tullow Oil PLC (TLW.LN) owns 15%.
Wood Mackenzie estimates that 100 trillion cubic feet of natural
gas has been discovered in Mozambique and Tanzania to date, ranking
the region as one of the most prolific conventional gas plays in
the world.
The energy consultancy says there could be enough gas offshore
Mozambique and Tanzania alone to support up to 16 liquefied natural
gas, or LNG, production units.
-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692;
Ross.Kelly@dowjones.com
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