AfrOil: Kenya to create 5 mega-blocks for next licensing round

Kenya is demonstrating renewed enthusiasm about developing the country’s fledgling oil industry, with plans to create five new exploration blocks that will be among the 45 blocks the government intends to auction in the next financial year.

Nairobi has allocated KES2.71bn ($19.4mn) in the 2023/2024 budget, which will take effect in July, for gas and oil exploration, with part of the funds going towards demarcating up to five new oil and gas exploration blocks.

Together with the new blocks, Kenya intends to market a total of 45 blocks with a round licence auction set for the 2024/2025 financial year, according to a work plan drawn up by the Ministry of Petroleum.

Under the plan, Kenya is also targeting to conclude the field development plan (FDP) for an oil project that has remained in limbo since the discovery of crude in 2012 and build a large water pipeline that will supply water to the South Lokichar oilfields.