Kenya to Offer Nine Oil, Gas Blocks for Auction

Kenya is likely to offer nine new onshore and offshore oil and gas blocks for auction, country’s Permanent Secretary for Energy Patrick Nyoike told reporters. 

Previously Kenya operated more on a first-come, first-serve basis, but since it has become established as a known area for hydrocarbon deposits, it wants to demand more from companies that seek to drill in the country, Reuters reported citing energy ministry officials.

Nyoike said Kenya would demand higher licensing fees and impose a heavier work programme requirement, which means companies would be required to spend more money in the country, Reuters said. The new area is expected to become available within a month, he said.

Among the areas available will be part of the Lokichar Basin, and the Lamu Basin, Reuters said. 'Many, many companies have shown interest in coming to Kenya ... Chevron and Eni want more blocks,' Nyoike said.