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Spudded on Saturday, the well is being drilled from Songo-Songo Island offshore Tanzania using the Caroil-6 land rig, which also drilled the earlier unsuccessful Kiliwani-1 well.
Kiliwani North-1 will test a possible new oil play in the Nyuni Block and also investigate the lower cretaceous sand stones, which are the reservoirs at the Songo-Songo producing gas field.
Drilling is expected to take 35 days to reach a total depth of 2012 metres.
Operator of the two-well program is Ndovu Resources, with a 39% stake, while Key holds a 20% stake and Bounty has 6%.