Kenya Revamps Oil Blocks to Boost Investment

Kenya has restructured its petroleum exploration blocks to align with global best practices and its legal frameworks, Energy and Petroleum Cabinet Secretary Opiyo Wandayi has said.

The CS stated that this initiative has enabled Kenya to identify ten highly prospective blocks, selected based on geoscientific data, which will be available for Kenya’s First Licensing Round set to launch by September 2025.

The South Lokichar onshore oil project in Kenya. [Photo: Courtesy]

Wandayi noted that this presents a unique opportunity for investors to explore Kenya’s hydrocarbon potential through a transparent and merit-based process.

Speaking in Dar es Salaam, Tanzania, during the Eleventh East African Petroleum Conference and Exhibition 2025 (EAPCE 2025), the CS said the blocks are strategically located in the Lamu and Anza basins, regions with proven discoveries and significant untapped potential.

He emphasised that to support informed decision-making, Kenya has compiled comprehensive geoscientific data, including seismic surveys, geological reports, and exploration data, which is available at the National Data Centre hosted by the National Oil Corporation of Kenya. He encouraged investors to utilise these resources for deeper insights into Kenya’s petroleum potential.

The CS also highlighted that Kenya is making significant investments in infrastructure to support oil and gas exploration and development. Key projects include the expansion of Lamu Port under the LAPSSET Corridor Programme and the improvement of road networks to facilitate logistics. Additionally, the Lamu-Lokichar pipeline project is expected to ensure seamless transportation of petroleum products.

He reiterated that these projects are designed to enhance Kenya’s competitiveness as a regional energy hub.

The CS further stated that Kenya is developing a highly skilled and growing workforce in the petroleum sector. He noted that universities and technical institutions in the country offer specialised training in petroleum engineering, geology, and geophysics.

The government, he said, remains committed to capacity-building initiatives aimed at increasing local expertise and innovation to support industry growth.

Reaffirming the country’s commitment to attracting investment, Wandayi assured investors that Kenya provides a stable legal framework, flexible Production Sharing Contract (PSC) terms, and a government dedicated to the sustainable growth of the oil and gas sector.

He emphasised that Kenya’s focus on transparency, efficiency, and investor confidence remains steadfast.