The ministry of energy and petroleum (MoEP) through the Kenya Petroleum Technical Assistance Project (KEPTAP) has requested for an expression of interest from firms wishing to undertake a hydrocarbon reserves audit and to develop competent person’s report for the oil assets in Block 10bb and 13t in North Western Kenya.
The consultancy expected to take three months undertake an audit of the hydrocarbon reserves covering the years 2012-2017 and to develop a responsible, unbiased and independent technical view captured in a Competent Person’s Report (CPR) of the oil assets in blocks 10BB and 13T. The report will guide the government making a back-in decision in the two blocks as well as raising money for the national oil corporation through the Nairobi and London bourses.
The scope of the assignment will include:
- Carry out a comprehensive independent reserve audit and resource estimation of block 10BB and 13T by;
- Review the underlying assumptions and its transparency levels, carried forward in the currently booked reserves & resource estimates in accordance with Securities and Exchange Commission (SEC), Society of Petroleum Engineers (SPE), London Stock Exchange among other acceptable international standards, and generally accepted engineering estimating and reserve evaluation principles and petroleum classification system for both discovered (reserves 1-3 P class, contingent resource 1-3Cclass), and undiscovered resource s (prospective resource) in the technical range of uncertainty (low, medium, high) for oil, gas and condensate streams.
- Assess as provided by Tullow Oil and its Partners a) the appropriateness of the methodologies employed, b) the adequacy and quality of the data relied upon, c) the depth and thoroughness of the reserves estimation process, d) the classification of reserves appropriate to the relevant definitions used, and e) the reasonableness of the estimated reserves quantities and/or the Reserves Information.
- Document audit findings; identify gaps and its impact on reserves & resource estimates. Recommend the client in accordance with the best industry practices on gap closure (means/methods).
- Document audit assessment process for MoE P capacity building purposes enabling.
- Develop an independent Competent Persons Report (“CPR”) reflecting a technical independent view facilitating a decision about the level of state participation in the oil developments in block 10BB and 13Tand enabling subsequent equity financing through stock exchange listing at the LSE and NSE. Provide the Client with clear recommendations and it’s rational behind it.
Interested firms are expected to have: significant international experience in providing technical independent advice to Governments on hydrocarbon reserves and resource estimates and on stake participation in the development of oil assets enabling Initial Public Offering at International Stock Exchange especially in London which is mandatory. The firms are also expected to meet the local content requirement and specifically experienced national expert(s) in the upstream industry among other requirements.
As per the last resource assessment estimates in April 2016 by DeGolyer and MacNaughton Canada Limited (DMCL) put Kenya crude oil recoverable 2C unrisked resources at 750 million barrels an increase from an earlier estimate by Gaffney, Cline & Associates in September 2014 that put the total 2C (best) gross contingent resources at 616 million barrels of oil and total 3C (high) gross contingent resources at 1.29 billion barrels.
In the breakdown thereafter 12 million barrels were however classified as Development Unclarified from the Etuko and Ewoi fields leaving the Development Pending resources at 754 million barrels. In six of the fields (Ngamia, Amosing,Ekale, Etom, Twiga and Agete) the assessment placed the chance of commerciality at 86 percent while at Etuko and Ewoi the chance of commerciality at 50 percent.