State to hand over two Wajir blocks for oil prospecting

Motorists will pay more for fuel after the energy regulator adjusted prices to match rising import cost. Photo/FILE  NATION MEDIA GROUP

By Barnabas Bii, bbii@ke.nationmedia.com

In Summary

• Ministry to relinquish the blocks covering more than 15,000 square kilometres.

The government is set to issue more exploration licences for blocks in Wajir County as foreign interest surges since Tullow first discovered oil in Turkana.

The State is to hand over more oil exploration blocks to potential investors and formulate policies on sharing of revenue from the natural resource.

The Energy ministry will relinquish two blocks covering more than 15,000 square kilometres in Wajir as the search for oil deposits attracts more exploration companies.

“Once gazetted, relinquished oil blocks will be officially available to companies interested in investing in petroleum and gas products,” said Felix Mutunguti, a senior official at the Energy and Petroleum ministry.

 

The 2A block on offer measures 7,801 square kilometres while the 2B block covers 7,806 square kilometres. Both are in Wajir County.

“About 25 per cent of the total area under possible oil deposits will be given out to companies interested in oil exploration and production,” said Mr Mutunguti.

About 30,000 square kilometres in Marsabit, Lamu and Turkana counties  were last year issued to oil companies to carry out exploration.

Among the available oil blocks include Mandera Block 1 estimated at 12,000 square kilometres, Block L5 off-shore Lamu basin with about 3,200 square kilometres and blocks L 13 (3,000 square kilometrers), L 7 (2,000 square kilometres) and L 4 (1,800 square kilometres) all in Lamu.

Block 10BB at Ngamia 1 in Turkana where Tullow Kenya discovered oil deposit two years ago and Block 13 T are also among the surrendered blocks.

The discovery of possible oil deposits by Tullow in Turkana has attracted three more companies in the search for the minerals.

Adamanging and Bowleven Oil and Gas from Britain are to begin prospecting for oil and gas in Turkana North and Kibish districts while ERHC will hunt for the commodity in Turkana West and Loima districts.

Mr Mutunguti said interested companies are gathering data on the likelihood of viable oil exploration in the county.

“The initial process will involve aerial survey to collect data on the ground to prospect for oil and gas,” explained Mr Mutunguti on phone.

At the same time, a new petroleum exploration and production Act is to be enforced on sharing of revenue from commercial oil deposits.

“The Act will clearly spell out what the national and county government as while as the local community will benefit from the natural resource,” explained Mr Mutunguti.