Kenya Rents out 46 Blocks to Oil Exploration Companies

Kenya has rented out all current oil blocks to oil exploration companies, according to the recent report of the Daily Nations newspaper citing Kiraitu Murungi, the Energy Minister.

According to the Daily Nations newspaper, Enery Minister Murungi said that the government has distributed the four remaining blocks to international oil exploration companies which include the Apache Corp of America (APA), Total SA of France (TOT), Anadarko of the United States and the CNOOC of China.

During the Oil and Gas Summit launch, the Energy Minister was quoted as saying on the sidelines that all of the country’s oil blocks, amounting to a total of 46 including 9 deep offshore, are currently contracted out. Moreover, it said that its offices are presently busy with production-sharing contract signing. He also said that the ministry’s role at the moment is to follow up to ascertain the implementation of the work programs. The Oil and Gas Summit is set to begin in November this year.

Apache Corp is anticipated to drill the first deepwater oil well off Kenya in three months, according to the Daily.

Mr Murangi said that they are again going to deep-sea drilling with Apache beginning this September. The drilling will be done around 60 kilometers off the eastern side of Malindi.

The Energy Minister also said that they have seen major private sector interest since striking oil in Turkana. In the month of March, Tullow Oil PLC (TUWOY) of London made an announcement that it had seen oil in its Ngama-1 well in Kenya’s northern region, and the company expects it to be East Africa’s biggest oil discovery so far.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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