Kenya to list eight new blocks for oil exploration

Kenya has marked out eight new offshore oil blocks to be opened up for leasing by exploration firms, senior energy ministry officials said.

Exploration interest in Kenya and its neighbours in eastern Africa has increased after oil deposits were found in Uganda and natural gas in Tanzania and Mozambique.

At least five oil companies are already jostling for the new blocks, which the East African nation had initially expected to list in the Kenya Gazette by the end of February, but delays arose due to errors while surveying the blocks.

Their listing in the weekly government publication makes it legal for them to be leased out for exploration.

France's Total, Norway's Statoil, Brazil's Petrobras, New York-listed Apache Corporation and UK's Tullow Oil Plc had expressed interest in the blocks, a government official said.

"The companies specified they wanted deepwater offshore blocks," said Alfred Odawa, a consultant geologist at the energy ministry.

The blocks will be to the east of existing ones off the coast of Kenya, and will bring the total number of exploration blocks in the country to 46.

The blocks will have areas of between 10000 and 15000 square kilometres and and will be between 2600 and 4000 metres deep. Explorers are already active on other blocks, collecting and analysing 2D and 3D seismic data and drilling exploratory wells.

Martin Heya, the commissioner of petroleum at the energy ministry, said Total had signed a preliminary agreement for the rights to one of the blocks.

Earlier this week, British oil firm Afren started the acquisition of 1800km of 2D seismic data in Block 1, in north-eastern Kenya. Canadian oil and gas firm Africa Oil Corp is drilling in block 10BB in the Lokichar Basin. - Reuters