Qatar petroleum gains foothold in Kenya’s offshore blocks
The government of Kenya has signed an agreement with Qatar Petroleum to lead exploration efforts in three offshore blocks (L11A, L11B, and L12) located offshore in the Lamu Basin.
This area covers approximately 15000square kilometers, with a water depth of about 1000 to3000 metres.
This is according to the company statement delivered on Tuesday. This venture will be led jointly by Eni and Total.
If regulatory approvals go through, it is expected that the joint venture will see Eni (the operator) bag 41.25% participating interest, Total with 33.75% and Qatar Petroleum with 25%.
Other Recent developments in Kenya’s Oil industry
Kenya is in the process of building a processing facility in Lamu capable of producing 80,000 barrels per day. Kenya has the ambition of venturing into commercial oil production.
A UK company, Tullow oil discovered large quantities of crude oil in the South Lokichar basin in Turkana in 2012 estimated to contain 560million barrels. The government of Kenya is also expected to finish the oil pipeline from Lokichar to Lamu by 2022.
Kenya stands to benefit if all goes well. Considering that it will be in a position to process its own oil and export it, the more money will be able to come in for the government and international contractors. Most of the times oil exports to developed countries are for processing and then sent back to Africa.
Kenya expects to make its first shipment of 200,000 barrels of crude oil this month.