The government of Kenya has announced plans to plans to offer 10 exploration blocks for licensing in September 2025. Energy and Petroleum Ministry made the announcement and said the move aims to make a renewed effort to unlock the potential of its oil and gas sector by restructuring its petroleum exploration blocks.
These blocks are located in the Lamu and Anza basins, areas known for their hydrocarbon potential based on previous geoscientific surveys. This marks a significant step towards revitalizing the country’s oil and gas industry, which has faced setbacks despite promising discoveries in the past. The move is expected to create new opportunities for investors to explore Kenya’s untapped resources through a transparent and competitive licensing process.
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Boost in oil and gas sector
The Ministry of Energy and Petroleum has ensured that investors will have access to detailed geoscientific data, including seismic surveys, geological reports, and well logs, all available at the National Data Centre managed by the National Oil Corporation of Kenya. This data aims to support informed decision-making and increase investor confidence in Kenya’s oil and gas potential. Cabinet Secretary Opiyo Wandayi emphasized that Kenya offers a stable legal framework and flexible terms under the Production Sharing Contract (PSC), which are designed to attract and retain international investors.
To support the sector’s growth, the government is also investing in infrastructure projects such as the proposed Lokichar-Lamu pipeline and enhancements along the Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor. These developments are expected to reduce operational costs and improve efficiency for oil and gas companies. Petroleum Principal Secretary Mohamed Liban highlighted that improved regulations and investment incentives will create a more favorable environment for exploration and production activities.
Kenya’s oil sector gained global attention after the discovery of commercially viable oil reserves in Lokichar, Turkana County in 2012 by Tullow Oil. However, the project has faced significant delays due to financing challenges and regulatory hurdles. Tullow is currently seeking a strategic investor to help move the project into the commercial phase. Despite drilling 95 wells across the country, with 42 confirming the presence of hydrocarbons, the Lokichar project remains the only commercially promising discovery. By reopening the licensing process and strengthening infrastructure and regulations, Kenya aims to position itself as a key player in the regional oil and gas market.
