National Oil Corporation of Kenya has entered into an agreement with US firm Schlumberger Limited to build capability in field development planning and production optimization of the Lokichar oil discoveries.
The two firms will jointly develop field development plan that will evaluate the scope of work being done by other exploration firms in what Chief Executive Officer MaryJane Mwangi says is aimed at safeguarding Kenya’s national interest.
Since crude oil discoveries were announced in February 2012, Kenya is projected to commercialize the natural resource in five years after the 210 billion shillings Likichar-Lamu Pipeline is completed.
Preliminary estimates indicate that Kenya could be sitting on crude oil reserves totaling about 750 million barrels.
In a statement, National Oil chief executive MaryJane Mawangi says the one year agreement will enhance its advisory role to the government regarding the industry.
She says, “through this engagement with Schlumberger National Oil will be equipped to better advise the Government on the best principles and practices for developing the oil discoveries in Lokichar with a view to safeguarding national interest.”
The joint Field Development Plan will be used to further evaluate the exploration works that are being done by Tullow Oil, Africa Oil and Maersk Oil.
At least 25 staff from the National Oil Corporation of Kenya as well as Ministries of Petroleum and Mining will benefit from a comprehensive technical skills transfer in oil and gas.