Kenya Launches First Oil Exploration Licensing Round in Six Years
Kenya has announced the opening of bidding for 10 oil exploration blocks this month, marking the country’s first licensing round since implementing new petroleum legislation six years ago. The move represents a renewed push to develop Kenya’s oil and gas industry following a period of regulatory restructuring.
The exploration blocks are located within the Anza and Lamu basins and were selected based on comprehensive geoscientific data to ensure a transparent allocation process. The government is providing detailed seismic surveys, geological reports, and well data to potential bidders. Kenya maintains 50 blocks across four sedimentary basins, with these 10 blocks now ready for marketing.
The offering follows a complete restructuring of Kenya’s petroleum exploration framework to meet global standards, featuring flexible Production Sharing Contract terms and attractive tax incentives. Mohamed Liban, principal secretary for petroleum, and Petroleum Commissioner Joseph Otieno emphasized the government’s commitment to supporting exploration and production through infrastructure investment.
The initiative aims to revitalize Kenya’s oil ambitions after previous setbacks, including the stalled South Lokichar project where UK-listed Tullow Oil failed to secure partners. French major TotalEnergies and Africa Oil Corp. withdrew from that venture two years ago, leaving Tullow as the sole owner and creating uncertainty about Kenya’s petroleum development prospects.
Source: Africa Business Insider
