Kenya plans to open new oil and gas exploration blocks in the second half of the year as interest in its upstream petroleum sector grows.
The Energy and Petroleum Regulatory Authority is establishing a national petroleum data center to support upcoming bidding processes.
Authorities made this move after restructuring the petroleum sector, including redefining oil and gas blocks based on exploration potential and international standards.
The exercise reduced the number of blocks from 63 to 50 and concentrated on high-potential areas such as the transition zone, offshore Lamu, and the Anza Basin, creating fresh investment and exploration prospects.
During an interview in Nairobi, EPRA director general Daniel Kiptoo said the data center will play an important role in preparing for future bid rounds.
This effort follows renewed global interest in oil and gas exploration driven by shifts in financing conditions and energy policy.
Kiptoo noted that national oil companies and private investors from various regions have shown interest, though competition for capital remains strong. He added that Kenya must market itself well and provide the right incentives to attract funding.
Over the past five years, Kenya experienced investor exits from its petroleum sector, including Tullow Oil’s sale of the Lokichar Turkana project, as financiers became cautious about funding new developments.
Banks showed reluctance to support oil and gas ventures, especially in frontier markets, due to climate concerns and the global energy transition.
Kiptoo explained that financing conditions have begun to change and the renewed push for exploration has created an opportunity for Kenya to promote its available blocks.
He added that preparations extend beyond South Lokichar, as regulators work with the ministry to package bid offerings and present them to the market as a priority focus in the upstream segment.
Earlier, the Energy Ministry indicated that it will open at least ten new oil and gas blocks to investors in 2026 through competitive bidding.
Of the 50 restructured blocks, 29 lie within the Lamu Basin across onshore, offshore, and transition areas; 12 fall in the Tertiary Rift; six in the Anza Basin; and three in the Mandera Basin.
Kiptoo said authorities introduced the changes to strengthen Kenya’s position in attracting high-risk exploration capital.
He explained that Kenya still qualifies as a frontier destination because it lacks extensive commercial reserves and infrastructure such as pipelines and refineries, forcing it to compete with more established markets by offering attractive terms.
Officials carried out the restructuring under provisions of the Petroleum Act 2019, which allows the Cabinet Secretary, in consultation with the National Upstream Petroleum Advisory Committee, to redefine petroleum blocks through official notice.
The process merged lower potential areas to improve success rates, designed promising blocks to attract investors, adjusted block sizes to suit work programs, and maintained continuity between onshore and offshore acreage in transition zones.
Authorities also focused on regions with stronger geoscientific signals of hydrocarbons and reassigned acreage using lessons from earlier drilling results that delivered limited commercial outcomes.
With the data center and updated block map underway, EPRA and the Energy Ministry aim to position Kenya as a credible destination for upstream investment in a shifting global energy environment.
At the same time, Kenya targets commercial oil production and first exports from the Turkana South Lokichar basin by December this year or early 2027 after Gulf Energy acquired the project from Tullow Oil.
The first phase between 2026 and 2032 is expected to deliver between 20,000 and 50,000 barrels per day before increasing output beyond 60,000 barrels per day.
Parliament is reviewing the Field Development Plan, and authorities expect a final decision soon to maintain progress toward commercial production by December 2026.
source: www.the-star.co.ke
African Energy Council