Reuters reported that Kenya’s first offshore gas discovery, found by Apache Corp. (NYSE:APA), which is operating on behalf of Britian’s Tullow Oil plc (LSE:TLW) and Australia-based Pancontinental Oil & Gas NL (ASX:PCL), is not large enough for commercial production.
As quoted in the market news:
Tullow dashed hopes that oil might be found at the lower depths of the well on Tuesday, saying that no oil or gas had been found there and that the well would now be plugged and abandoned.
“The total amount of gas found is not sufficient in isolation to be commercial. We are however, encouraged that a reservoir containing hydrocarbons has been found,” Kenya’s Energy Minster Kiraitu Murungi told a news conference.