Kenya: Cepsa farms in to ERHC block

Spain’s Cepsa has farmed in to ERHC Energy’s Block 11A in north-west Kenya, taking a 55% operating stake. ERHC retains 35%, while the government has a 10% carried interest up to any declaration of commerciality, and may then acquire an additional 10%. Circle Oil, which introduced ERHC to Kenya and to its Kenya general manager Peter Thuo, has a carried 5% of ERHC’s total interest. A 2D seismic survey of at least 1,000km is expected to start this spring. ERHC awarded a contract in January to China’s BGP.