Find visitors' favorite businesstravel Hotels And.... Book your best!

Oil firms scramble for eight new offshore blocks in Kenya, East Africa

Several global exploration firms are expected to begin bidding for eight new offshore oil and gas exploration sites in Kenya in coming weeks.

This follows a move by the Ministry of Energy to publish an official gazette notice of eight new offshore sites.

While the government had indicated in March that it was marking out the eight blocks, delays in gazetting the sites meant the blocks could not be leased out.

The gazette notice brings the total number of exploration blocks in the country to 46.

Major natural gas finds in the past three years, mainly in Tanzania and Mozambique, have increased investor interest in East Africa’s offshore blocks.

Experts believe there is a high probability of a gas find in Kenya because its coastline shares the same geological formation with some of the exploration blocks found in Tanzania.

Increased activity in the oil and gas exploration business is expected to come as good news to Kenya as the country seeks to reduce its fuel imports.

The firms are expected to negotiate with the government for rights to explore acreage in water depths of between 3,000 and 4,000 metres.

Interest in Kenya’s exploration blocks has risen since UK firm Tullow Oil announced the country’s first oil discovery in Turkana in March. The announcement resulted in firms listed on the New York and London stockexchanges such as Premier Oil and Apache Oil staking a claim in Kenya’s exploration business even as smaller players such as Cove, Origin Oil, and Pancontinental heightened their exploration work.

Total of France is said to be negotiating with the government for a Production Sharing Contract for one of the new blocks L22. Apache Corporation, ExxonMobil and Anadarko Petroleum Corporation of the United States, Royal Dutch Shell, Statoil of Norway and Petronas of Brazil are among firms interested in exploring the new sites.

Kenya’s Petroleum Commissioner Martin Heya said discussions with prospecting firms seeking to be awarded new acreage will be on a first-come first-serve basis. “We want to award acreage to firms that have technical and financial capabilities” said Mr Heya.

The entry of multinational prospectors with greater financial muscle has seen smaller players like Cove, Origin Oil, and Pancontinental either exit the scene or remain with minority interests through buyouts.

The Ministry of Energy in December 2011 asked the Director of Survey to expedite the survey work of new offshore areas to facilitate the publication of sites and award acreage to prospecting firms.

Total wants the L22 acreage to increase its presence in Kenya. Last year the firm announced its acquisition of 40 per cent interest in areas L5, L7, L11A, L11B and L12 subject to approval by Kenyan authorities.

The East African Newspaper

Comments for Oil firms scramble for eight new offshore blocks in Kenya, East Africa

Average Rating star

Click here to add your own comments

May 24, 2012
EEZ Waters Of Kenya
by: Bashir

EEZ Waters Of Kenya

Kenya-French Somali Oil War

Ex-Somali Diplomat Accuses Kenya of Illegal Block Awards

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Africa Uganda Business Travel News .

Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page


feel free to ask our business travel consultants.

Farmland for Sale
Prime Commercial Property
Entebbe Rd Land 4 Sale
Over 20 Farmland Parcels
Property & Plots of Land

Uganda Online SuperMarket
Online SuperMarket

Uganda Coffee Safari
Book My Coffee Tour

Uganda Honey
Uganda HoneyComb

Subscribe to our Business Travel Newsletter

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Africa Uganda Business Travel News Digest.

Hotel Booking

Car RentalCar Hire

Africa Uganda Shipping & Handling ServicesShipping & Handling Services

Our Sponsorship Policy

Apple Guavas available
Africa Uganda Plants GuideAfrica Plants Guide

Charity Investment Guide
Changing Lives

Africa Uganda SMS Guide
Africa Bulk SMS

Poultry Investment Guide
Poultry Business Guide

Related Pages

Uganda Hotels Directory

Uganda Hotels Booking Guide

Houses U can buy Uganda Real Estate Guide Industrial/Farmland Deals

Uganda Real Estates Guide

The Mountain Gorilla

Uganda Safari Guide

Uganda Weather Today

Book My Hotel

Please note that all fields followed by an asterisk must be filled in.

Please enter the word that you see below.


Uganda Currency