In the past companies which were allocated license to explore oil in Kenya came up
with nothing at all.Kenya’s oil discovery in 2012 has triggered a huge interest from
the private sector to further explore the country’s geological basins. This was after
the exploration by Tullow oil with its associate Africa Oil Corp discovered 600 million
barrels in south Lokichar basin.
Initial data acquired from northern Kenya indicates the figure for estimated oil
resources is set to rise with increased drilling. Kenya expects its estimate of oil
resources to almost double to 1 billion barrels as well-drilling climbs and the
government forges ahead with plans to build an export pipeline, an energy ministry
official said.
“The country may start producing oil at the end of the decade, as it aims for quicker
production of natural gas to first meet domestic power-generation needs before any
surplus supplies can be exported. My administration plans to have new legislation
into guiding activities of the oil industry and maximize the country’s benefits from
the sector,”the President said at a press briefing.
Having recently appeared on the energy radar, Kenya and the entire East Africa region
has quickly become a hot spot for commercially viable oil and gas discoveries.Kenya
has been classified as a middle-income country after a statistical reassessment of
its economy increased the size by 25.3 per cent. Having been named the ninth largest
economy in Africa surpassing countries Tunisia and Ghana.
Recently, global oil prices have been dropping due to tensions over Iran’s nuclear
program easing, since April’s meeting between Iran and the US, Britain, France,
Russia, China and Germany.Kenya too has put itself on the international graph by
dropping its national oil price twice.
motorist would be driving all the way to the filling station smiling this festive season.