Kenyan Oil, Hot And Getting Hotter: Interview With Taipan’s Maxwell Birley

Kenya has become the hottest oil and gas venue in East Africa since big discoveries were made in the country’s virgin oilfields last April. All eyes are on Kenya in 2013 to see how quickly–and economically they can develop those discoveries into production.

Nairobi based Taipan Resources Inc. (TPN-TSXV; TAIPF-PINK) is the 4th largest acreage owner in Kenya, and is getting ready to carry out seismic on Block 2B. They recently attracted Maxwell Birley as CEO. Mr. Birley has been instrumental in discovering more than 2 billion barrels of oil equivalent in his 30-year career—much of it in Africa and Asia.

In an exclusive interview with Oilprice.com, Taipan CEO Maxwell Birley discusses:

• Why Kenya is the hottest venue in East Africa
• Why 2013 will be a stellar year for Kenya
• Why the regulatory environment remains attractive
• Why Kenya outranks its neighbours
• Why infrastructure will be in place in time for commercial activity
• Why this venue is good for the juniors
• Why the Somalia security risk remains low
• What Taipan is really chasing

Interview by James Stafford

Kenya

James Stafford: There were some major discoveries in Kenya last year. Could you give me some colour on these discoveries that has the market thinking Kenya is now one of the hottest exploration spots on earth?

Maxwell Birley: There are a couple—or 2 billion–reasons actually. First, two recent discoveries by Tullow in the Tertiary Lokichar basin of Kenya are in similar geological settings as the discoveries also made by Tullow in the Albertine Basin in Uganda, just to the west.

Uganda has over 2 billion barrels, and the discoveries are similar enough that one could assume the eventual size of the resources in the Lokichar basin could be in the billions of barrels range as well.

There are also other Tertiary basins in Kenya that are attractive. Based on geochemical work we recently did it’s possible that the eventual hydrocarbon resource size for the whole of Kenya could be much higher than this.

Being specific the unrisked prospective resources for T

Eight killed in Kenya raid, police see political hand

Eight people were killed when raiders armed with guns, machetes and arrows attacked a village in Kenya's Coast Province on Wednesday in what police said was politically instigated fighting linked to upcoming elections.

The raiders were Pokomo farmers who attacked semi-nomadic Orma pastoralists. It was latest violence in a dispute ostensibly over grazing land and water in which 100 people were killed last August in raids and revenge attacks.

However, the conflict had taken on political dimensions, a senior police officer said.

"We have names of several politicians, business people and local elites who we believe have been, and are still funding the attacks in the Tana. They are using grazing land and water as excuses," regional police chief Aggrey Adoli told reporters in Mombasa.

Police would soon make arrests of those suspected of being behind the violence.

"When we arrest them, they will tell us how and where they are acquiring illegal firearms and other weapons to arm these locals," Adoli said.
The raiders from the Pokomo tribe attacked Nduru village in the Tana delta, home to Ormas, and killed one woman and four men at dawn, he said. The Ormas killed two of the attackers in defense, and one other Orma died while being taken to hospital.
Four policemen who were escorting a local government official to tour the scene of the attacks were also wounded when their vehicle was attacked.
Kenya Red Cross officials said they evacuated nine other wounded people to a hospital in the resort town of Malindi, located 100 km (62 miles) from the area of the attack.

"Many of them were bleeding from gunshot wounds and cuts and we had to administer first aid as we carried them to hospital," Coast Province Red Cross co-ordinator Mwanaisha Hamisi told Reuters.