{"id":6395,"date":"2017-10-11T08:25:41","date_gmt":"2017-10-11T08:25:41","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=6395"},"modified":"2017-10-11T08:28:35","modified_gmt":"2017-10-11T08:28:35","slug":"cepsa-withdraws-kenyas-block-11a","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/cepsa-withdraws-kenyas-block-11a\/","title":{"rendered":"CEPSA Withdraws From Kenya\u2019s Block 11A"},"content":{"rendered":"

CEPSA Kenya Limited, an affiliate of Compa\u00f1\u00eda Espa\u00f1ola de Petr\u00f3leos, S.A.U. has withdrawn from Block 11A months after the unsuccessful drilling of Tarach 1 well OilNews Kenya has learnt.<\/p>\n

Confirming the exit principal secretary in the Ministry of Energy and Petroleum Andrew Kamau told OilNews Kenya that the Spanish explorer withdrew from the block several months ago without offering the actual date.<\/p>\n

The company which entered into a farm-out agreement with ERHC in October 2013 was to carry the latter through to the drilling of the first well and thereafter if any significant hydrocarbons were encountered.<\/p>\n

The exit could further reinforce earlier indications that Tarach-1 well was a dry well<\/a> despite a statement by partner ERHC that the JV had encountered<\/a> two different hydrocarbon charged intervals, the first extending over 100 meters terming the results as encouraging. A follow up filing<\/a> to the SEC said that the operator analysis of the results if the Tarach-1 well shows that it did not encounter any reservoirs therefore classifying Tarach-1 as a dry well.<\/p>\n

The exit puts into doubt the drilling of the planned second exploratory well , the Egole-1 a four-way rollover closure onto a Northwest \u2013 Southeast trending fault plain with mean prospective resources of 101 million barrels of oil will continue.<\/p>\n

Besides ERHC and CEPSA the Government of Kenya has a 10% carried participating interest up to the declaration of commerciality and may thereafter acquire an additional 10% interest in the PSC in which case the total Government participation would rise to 20%.<\/p>\n

Circle Oil Limited which acted as finder in ERHC\u2019s acquisition of the Block is also entitled to receive a 5% payment on the value of the acquisition accruing to ERHC from the application. Circle has opted to receive this fee in the form of a carried 5% of ERHC\u2019s total interest in Block 11A.<\/p>\n

Prior to the exit\u00a0ERHC held a 35 percent interest in Block 11A while CEPSA had a 55 percent interest.<\/p>\n

Earlier CEPSA had withdrawn<\/a> from Tullow Oil operated block 12B after it was uncomfortable with the scheduled drilling by Swala Energy. According to Swala Energy CEPSA had prefered more time to review the 2D seismic data come to a decision on whether to drill or drop.<\/p>\n

Under the PSC the spanish explorer had committed to carrying Swala\u2019s seismic costs up to a maximum of $2.6 million as well as carry through the first exploration well should they have elected to enter this first additional exploration period of the PSC.<\/p>\n","protected":false},"excerpt":{"rendered":"

CEPSA Kenya Limited, an affiliate of Compa\u00f1\u00eda Espa\u00f1ola de Petr\u00f3leos, S.A.U. has withdrawn from Block 11A months after the unsuccessful drilling of Tarach 1 well OilNews Kenya has learnt. Confirming … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1455,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[4615,261,431,433,4334,6475,4187,3129,796,5783,1589,3128,5913],"class_list":["post-6395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-andrew-kamau","tag-block-11a","tag-cepsa","tag-cepsa-kenya-limited","tag-circle-oil","tag-compania-espanola-de-petroleos-s-a-u","tag-dry-well","tag-egole-1","tag-erhc","tag-exit","tag-ministry-of-energy-and-petroleum","tag-tarach-1","tag-withdrawal","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/kenya-block-11a-2.jpg?fit=300%2C258&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1F9","jetpack-related-posts":[{"id":5809,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tarach-1-well-now-classified-as-dry-cepsa\/","url_meta":{"origin":6395,"position":0},"title":"Tarach 1 Well Now classified as Dry – CEPSA","author":"","date":"March 27, 2017","format":false,"excerpt":"The Tarach 1 well drilled in April 2016 was dry as earlier reported by OilNews Kenya according to the latest SEC filing by joint venture partner ERHC. \u201cOperator analysis of the results if the Tarach-1 well shows that it did not encounter any reservoirs. The operator has therefore classified Tarach-1\u2026","rel":"","context":"In "New Discoveries"","block_context":{"text":"New Discoveries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/new-discoveries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/kenya-block-11a-2.jpg?fit=300%2C258&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5116,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cepsa-erhc-hit-dry-well-at-kenyas-block-11a-tarach-1\/","url_meta":{"origin":6395,"position":1},"title":"CEPSA, ERHC Hit Dry Well at Kenya\u2019s Block 11A Tarach-1","author":"","date":"September 1, 2016","format":false,"excerpt":"Earlier reports by OilNews Kenya that the Tarach-1 well in Block 11A was disappointing have now been confirmed with the commissioner for petroleum Martin Heya at the Ministry of Energy and Petroleum saying\u00a0the Spanish explorer Compania Espanola de Petroleos\u00a0 (CEPSA)was a dry well. According to the commissioner the block operator\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/04\/Tarach-1-well-rig.png?fit=551%2C412&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/04\/Tarach-1-well-rig.png?fit=551%2C412&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/04\/Tarach-1-well-rig.png?fit=551%2C412&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":4758,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cepsa-erhc-disappointed-at-kenyas-block-11a-tarach-1-well-source\/","url_meta":{"origin":6395,"position":2},"title":"CEPSA, ERHC Disappointed at Kenya\u2019s Block 11A Tarach-1 well – Source","author":"","date":"June 15, 2016","format":false,"excerpt":"OilNews Kenya has learnt that the search for oil and gas at Tarach-1 in Kenya\u2019s Block 11A has not been successful and works are ongoing to plug the well according to a reliable source. The drilling that commenced on 14th April 2016 using the SMP 106 rig in the north\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/04\/Tarach-1-well-rig.png?fit=551%2C412&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/04\/Tarach-1-well-rig.png?fit=551%2C412&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/04\/Tarach-1-well-rig.png?fit=551%2C412&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":2846,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cepsa-erhc-identify-drilling-location-kenyas-block-11a\/","url_meta":{"origin":6395,"position":3},"title":"CEPSA, ERHC identify drilling location in Kenya\u2019s Block 11A","author":"","date":"April 23, 2015","format":false,"excerpt":"Spanish exploration company CEPSA and Houston based explorer ERHC have said that its exploration team has identified the Tarach-1 prospect as the drilling location for the first exploration well set to be drilled in March 2016 in an announcement by ERHC. This decision was based on interpretation of 1,086.6 kilometers\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/kenya-block-11a-2.jpg?fit=300%2C258&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2106,"url":"https:\/\/www.oilnewskenya.com\/index.php\/drilling-in-kenyas-block-11a-to-begin-within-12-16-months\/","url_meta":{"origin":6395,"position":4},"title":"Drilling in Kenya\u2019s Block 11A to begin within 12-16 months","author":"Samuel Kamau Mbote","date":"December 2, 2014","format":false,"excerpt":"Block 11A partner Houston based ERHC has announced that together with the block operator CEPSA Kenya Limited (a wholly owned affiliate of Compa\u00f1\u00eda Espa\u00f1ola de Petr\u00f3leos, S.A.U. (CEPSA) it plans to start drilling in Northern Kenya in Q4 2015 earliest having completed a 2D seismic survey and a full tensor\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/kenya-block-11a-2.jpg?fit=300%2C258&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4360,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tarach-1-well-in-kenyas-block-11a-drilling-date-on-schedule-as-rig-mobilization-commences\/","url_meta":{"origin":6395,"position":5},"title":"Tarach 1 well in Kenya\u2019s Block 11A Drilling Date on schedule as Rig Mobilization Commences","author":"","date":"February 17, 2016","format":false,"excerpt":"The drilling rig for the Tarach 1 well in Block 11A has being mobilized to the drill site where concreting work and installation of conductors have already been completed as the JV partners Compa\u00f1\u00eda Espa\u00f1ola de Petr\u00f3leos, S.A.U.\u00a0 (CEPSA) operator* and ERHC work relentlessly toward a spud date near the\u2026","rel":"","context":"In \"Block 11A\"","block_context":{"text":"Block 11A","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/block-11a\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/kenya-block-11a-2.jpg?fit=300%2C258&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/6395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=6395"}],"version-history":[{"count":2,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/6395\/revisions"}],"predecessor-version":[{"id":6397,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/6395\/revisions\/6397"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/1455"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=6395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=6395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=6395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}