Africa (Commonwealth Union) – Kenya is making a fresh push to attract global oil and gas companies by restructuring its petroleum exploration blocks, setting the stage for a major licensing round in September 2025. The country’s Energy and Petroleum Ministry has identified 10 high-potential blocks for licensing, marking a significant step in its bid to revive the oil and gas sector.
While Kenya has a long history of oil exploration, only the Lokichar project in Turkana County has made commercially viable discoveries. However, the project has struggled to transition into the commercial phase due to financial and logistical hurdles. The new licensing plan aims to unlock further exploration opportunities, particularly along the Kenyan coast.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi announced the initiative at the 11th East African Petroleum Conference and Exhibition 2025 (EAPCE 2025) in Dar es Salaam, Tanzania. “We have selected 10 highly prospective blocks based on geoscientific data, which will be made available through a transparent and merit-based licensing process,” he stated.
Why Investors Should Pay Attention
Kenya is positioning itself as a regional energy hub, offering investors a stable legal framework, flexible Production Sharing Contract (PSC) terms, and improved infrastructure. The newly identified blocks are in the Lamu and Anza basins, regions with proven hydrocarbon deposits and untapped potential.
The National Data Centre hosted by the National Oil Corporation of Kenya (NOCK) has compiled extensive geological reports, seismic surveys, and well data to help investors make informed decisions. Wandayi emphasized that the government is committed to transparency, efficiency, and investor-friendly policies.
Tullow Oil’s Struggles and the Path Forward
Tullow Oil’s Lokichar field, one of the most significant oil projects in Kenya, remains stalled due to challenges in securing financing and finalizing regulatory approvals. The UK-based firm is currently searching for a strategic investor to push the project into full-scale production.
Additionally, Tullow Oil is awaiting government approval for its Field Development Plan (FDP), a crucial document that outlines the necessary investments to commercialize Kenya’s oil resources.
Strengthening the Petroleum Sector
Petroleum Principal Secretary Mohamed Liban assured potential investors that the Kenyan government is streamlining regulations, enhancing infrastructure, and offering incentives to drive exploration efforts. He highlighted key infrastructure projects, such as the Lokichar-Lamu pipeline and improvements along the Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor, which will lower operational expenses and improve efficiency.
Kenya’s oil journey dates back to the 1950s, when BP Shell Development Company received the first exploration license. Despite early setbacks, the sector saw renewed interest in 2002, leading to an expansion in exploration blocks. Over the last decade, 95 wells have been drilled, with 42 confirming hydrocarbon presence.
The Future of Kenya’s Oil and Gas Industry
With renewed government backing and a more structured licensing framework, Kenya is hoping to attract major global players to accelerate oil and gas production. If successful, these efforts could transform Kenya into a key energy hub in East Africa, unlocking significant economic potential for the country.
With the September 2025 licensing round on the horizon, investors now have a fresh opportunity to capitalize on Kenya’s hydrocarbon resources and shape the future of the nation’s energy industry.
