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A new report by the World Bank’s Africa chief economist Vivien Foster – The state of infrastructure in Sub-Saharan Africa: Early results of the African Infrastructure Country Diagnostic (AICD) study* – gives clear indications

East African Exploration (EAX) has farmed into Lion Petroleum’s 33,000km2 Block 1, taking over the operatorshipwith the right to earn up to 80% equity. The deal still requires formal approval from the Ministry of Energy but will involve an extensive and accelerated exploration work programme, including extensive gravity and magnetic surveying and up to1,200km of 2D land seismic in two phases. The block, considered largely under-explored, lies in north-east Kenya, over the western part of the Mesozoic Madera-Lugh basin, representing the western part of the extensive Ogaden Basin of Ethiopia and Somalia.

While banks are pulling in their credit, development finance institutions continue to expand their operations in sub-Saharan Africa. Kevin Godier talked to Germany’s DEG about a positive trend.

Technip contracts for Block 31 developments; PA Resources farms out Marine XIV; EODC contracts for two jack-ups; M&P to appraise Omko-1; Perenco quits Dussafu Marin; Swiss Oil takes Blocks L4 and L13; Candax starts seismic; Universal extends holdings; Aker contract

Kenya Electricity Generating Company (KenGen) has signed contracts for the construction of a 20MW hydro power station to be built 5km below the Sondu Miriu site on the Sondu River in Nyanza Province (AE 127/8).

The government is inviting expressions of interest for a contract for a study of the potential for using liquefied natural gas as part of Kenya’s thermal power mix. The study, to be part-financed by the World Bank, forms part of the Energy Sector Recovery Project.

BG Group bid target Origin Energy has won a six-month extension to the first additional period for the production sharing contracts for Lamu basin Blocks L8 and L9 and is looking for more farm-in partners

The saga over the choice of private partners for the Mombasa refinery shows little sign of a swift resolution as government factions squabble over Libya’s Tamoil Africa Holdings and India’s Essar Oil and Gas as their partner of choice (AE 138/19).

A satellite oil seep survey over Origin Energy’s Blocks L8 and L9 in the Lamu Basin has examined surface evidence of hydrocarbon seepage from the sea floor, Pancontinental Oil & Gas (PCL) said. “The slicks seen in Block L8 are the largest and highest ranked in offshore Kenya and coincide with several main prospects mapped from seismic.

EU date for Arzew probe; Higher fuel prices in Abidjan; Indians seek Chevron east Africa assets; Technip gets EPC contract for fertiliser project

Kenya Petroleum Refineries Ltd is inviting bids for an engineering, procurement and construction contract for a liquefied petroleum gas (LPG) import, handling, storage and bottling facility in Mombasa.

India’s Essar Oil and Gas has agreed to accept the Kenyan government’s proposal to let Libya’s Tamoil Africa Holdings take half of its share in the Mombasa refinery (AE 138/19). The 50% stake in Kenya National Petroleum Refineries previously owned by Shell, BP and Chevron was provisionally sold last year to Essar, subject to the government waiving its right of first refusal. However, Tamoil subsequently came in with a more attractive bid.

Woodside Energy’s partners in the Lamu basin have told the Australian company they are terminating its farm-in agreement (FIA) because it refused to drill a second well after the failure of the deep-water Pomboo well, Australia’s Global Petroleum said. “The termination notice has been given based on Woodside’s refusal to drill a second exploratory well in the project area in accordance with the FIA and its failure to take any steps to remedy this refusal, which the company considers to be a repudiation and breach of the FIA,”

Sterling farmout; Lundin farms into CNOOC block

The government is hoping a compromise proposal can end a dispute over ownership of the Mombasa refinery and allow a badly-needed upgrade to go ahead.