By Phaedra Friend Troy
Dominion Petroleum (LON:DPL) has been awarded the oil and gas exploration and production rights to Block L15 in the Lamu Basin in the deepwaters offshore Kenya, East Africa.
Dominion secured a Heads of Agreement contract to define the terms for Block L15, with Dominion serving as operator of the block with 100 percent interest. The leasehold is subject to a Production Sharing Contract with Kenya's Ministry of Energy.
The news follows the March 2011 award of Block L9 offshore Kenya to Dominion.
Block L15 is located immediately north of Block L8, which is expected to hold 1 billion barrels of oil in the Mbawa prospect scheduled to be drilled in the middle of 2012. The two blocks are located in the Davy-Walu structural trend, and Block L15 holds the Kofia-1 oil exploration well drilled in 1985 by Union Oil.
"We are delighted to add Block L15 to Dominion's East Africa deepwater exploration portfolio, one of the most sought after addresses in the exploration industry these days," said Andrew Cochran, chief executive of Dominion Petroleum. "The region is seeing both growing attention from, and accelerated activity by, major players with Kenya now due for deepwater drilling within the next year following the last year's successes in Tanzania and Mozambique."
The Production Sharing Contract requires Dominion to acquire 3D seismic on the acreage over the next two years. Dominion can then relinquish the block, or the company will be required to drill at least one exploration well.
Gaining acreage in East Africa, Dominion now holds operatorship of three blocks in Tanzania and Kenya.