By OGJ editors
HOUSTON, May 13 -- Woodside Energy (Kenya) Pty. Ltd., an affiliate of Woodside Petroleum Ltd. of Australia, has signed a farm-in agreement with Dana Petroleum PLC subsidiary Dana Petroleum (E&P) Ltd. for a 40% interest in production-sharing contracts covering Blocks L5, L7, L10, and L11 off Kenya. Star Petroleum International (Kenya) Ltd., a wholly owned subsidiary of Global Petroleum Ltd. of Australia, is also a 20% partner in the PSC.
Under the agreement, still subject to Kenya's approval, Woodside will be operator with a 40% interest and will pay 80% of development costs, including seismic and drilling, until two exploration wells are drilled and flow-tested. The seismic survey is expected to begin in the third quarter and could lead to drilling as early as 2005.
The area covers 47,500 sq km in a Cretaceous-Tertiary age sedimentary basin characterized by seven potential play types from which about 100 early-stage exploration leads and prospects have been identified in 200-3000 m of water.
