Govt to Auction 10 Multibillion Oil Exploration Blocks

The Kenya Times ~ Trending, Breaking News and Videos

Govt to Auction 10 Multibillion Oil Exploration Blocks

Kenya is preparing to put 10 oil and gas exploration blocks up for auction this September, marking its first licensing round since introducing a new petroleum law six years ago.

Principal Secretary for Petroleum, Mohamed Liban, on Monday, September 1, said Kenya currently has 50 blocks across four sedimentary basins, with 10 now ready for exploration.

“We have 50 blocks in four sedimentary basins, of which 10 are ready for marketing,” Mohamed Liban said. “This offering represents a new era in petroleum exploration, aligning Kenya with global standards.”

According to Commissioner for Petroleum Joseph Otieno, the blocks on offer this month are in the Anza and Lamu basins.

Kenya Auction 10 Multibillion Oil Exploration Blocks

The offered blocks were selected based on geoscientific data to ensure a transparent allocation process, with the government providing detailed seismic surveys, geological reports, and well data.

The move follows Kenya’s decision in May to restructure petroleum exploration blocks by introducing flexible contracts and tax incentives.

Energy Cabinet Secretary Opiyo Wandayi stated that the reforms have enabled the identification of 10 highly prospective blocks, which will be made available in the country’s first licensing round, scheduled to launch by September 2025.

“This presents a unique opportunity for investors to explore Kenya’s hydrocarbon potential through a transparent and merit-based process,” Mr. Wandayi said.

Also Read: Tullow Oil Exits Kenya After Ksh15.5 Billion Buyout

Speaking in Dar es Salaam during the Eleventh East African Petroleum Conference and Exhibition 2025 (EAPCE 2025), the CS emphasized that the targeted blocks in the Lamu and Anza basins are strategically located in regions with proven discoveries and untapped potential.

He encouraged investors to utilize the resources for deeper insights into the country’s petroleum prospects.

The CS further highlighted that Kenya is investing heavily in infrastructure to support oil and gas exploration.

Key projects include the expansion of Lamu Port under the LAPSSET Corridor Program, the improvement of road networks to facilitate logistics, and the proposed Lamu-Lokichar pipeline, which is expected to ensure efficient transportation of petroleum products.

“These projects are designed to enhance Kenya’s competitiveness as a regional energy hub,” Wandayi said.

Also Read: Kenya Set to Become an Oil Exporter with New Regulations

Kenya’s Oil Dreams Face Slow Progress Despite Untapped Reserves

Kenya is eager for more oil discoveries to bolster the commercial viability of its oil programme. It has untapped oil and gas resources, but progress has been slow.

The country first announced the discovery of oil in March 2012 within the Lokichar Basin in Turkana County.

Development stalled after UK-listed Tullow Oil failed to secure partners for its long-delayed South Lokichar project.

Tullow Oil and its former joint venture partners in the Turkana oil project, Total Energies and Africa Oil, submitted a revised field development plan (FDP) to the government in March 2023 for approval, as the venture stepped up its search for a strategic investor.

Total Energies and Africa Oil withdrew from the Turkana oil project in May 2023, leaving the British exploration firm with full ownership of the project, which clouds Kenya’s oil ambitions.

Oil exploration in Kenya began in the early 1950s when the first Oil Exploration License (OEL1) was granted to BP Shell Development Company to operate in the Lamu Embayment.

To date, ninety-four (94) exploration wells have been drilled by various oil exploration companies in the four sedimentary basins. The exploration wells drilled so far yield a very low well density of approximately 1 well for every 12,200 Square Meters. Km. The well density needs to be increased to accelerate hydrocarbon discoveries across the four basins.

Follow our WhatsApp Channel and X Account for real-time news updates.

This post Govt to Auction 10 Multibillion Oil Exploration Blocks first appeared on The Kenya Times ~ Trending, Breaking News and Videos and is written by Annah Nanjala Wekesa