Kenya is set to kick-start its long-awaited oil and gas exploration round for 10 blocks in September 2025, as part of renewed efforts to attract investors and develop its petroleum sector.
The announcement was made by Kenya’s Energy and Petroleum Cabinet Secretary, Opiyo Wandayi, at the East African Petroleum Conference and Exhibition 2025 in Dar es Salaam, Tanzania.
“This presents a unique opportunity for investors to explore Kenya’s hydrocarbon potential through a transparent and merit-based process.”
Opiyo Wandayi, Kenya’s Energy and Petroleum Cabinet Secretary
The move signals Kenya’s determination to revive its stalled oil and gas industry by offering tax incentives and other investment-friendly policies to attract international energy firms.
The government has also committed to investing in infrastructure to support exploration and development, addressing one of the key challenges that has hindered Kenya’s emergence as a petroleum-exporting nation.
“The government is strengthening the petroleum industry by ensuring that investments are well-supported through better policies and infrastructure.”
Opiyo Wandayi, Kenya’s Energy and Petroleum Cabinet Secretary
Despite possessing oil and gas resources, Kenya has faced significant hurdles in commercializing its petroleum deposits. The South Lokichar oil project, located in the country’s Turkana region, has been at the center of Kenya’s oil ambitions.
However, the project has suffered multiple setbacks due to regulatory hurdles, lack of investment partners, and infrastructure challenges.
Initially, UK-listed Tullow Oil, alongside TotalEnergies and Africa Oil Corp, sought to develop the South Lokichar Basin project.
The plan included securing financing for a pipeline that would allow Kenya’s crude to be transported from its landlocked northern region to export terminals.
However, in 2023, both TotalEnergies and Africa Oil withdrew from the project, leaving Tullow Oil as the sole owner of the blocks, complicating efforts to attract further investment.
The departure of TotalEnergies and Africa Oil raised concerns over the commercial viability of Kenya’s oil reserves, making it difficult for Tullow to secure new partners.
Tullow has struggled to secure new partners, delaying Kenya’s aspirations to become a petroleum-exporting country.
Tullow Oil’s Position on Kenya’s Oil Prospects
In its 2025 Outlook and Guidance Report, Tullow Oil reiterated its commitment to working with the Kenyan government to advance the project.
The Kenyan government’s slow approval process has hindered the finalization of the Field Development Plan (FDP), further delaying investment decisions.
The company acknowledged the delays associated with regulatory approvals and securing investors but maintained that Kenya remains a key growth opportunity.
“Despite the delays associated with securing governmental approval and a strategic partner, Kenya remains a material option to drive value and growth.”
Tullow 2025 Outlook and Guidance Report
The company is actively engaging with the government to finalize a Field Development Plan (FDP), which is a critical step toward achieving a Final Investment Decision (FID)—a milestone that would unlock significant capital investment and allow the project to move forward.
To improve its investment climate, the Kenyan government recently restructured its petroleum exploration blocks to align with global best practices and ensure compliance with the country’s legal frameworks.
This restructuring process led to the identification of ten highly prospective blocks, selected based on geological and scientific data.
By reorganizing its oil and gas assets, Kenya aims to enhance transparency and increase investor confidence, positioning itself as an attractive destination for oil exploration.
Additionally, the government is working on securing public-private partnerships (PPPs) to support infrastructure projects such as pipelines, refineries, and export terminals, ensuring that potential investors have the necessary logistical support to operate efficiently.
Kenya’s bold move to relaunch oil and gas exploration comes at a crucial time when the global energy market is evolving.
The success of this initiative will depend on investor confidence, government policy reforms, and infrastructure development.
As the country gears up for the September 2025 bidding round, stakeholders remain hopeful that Kenya can finally unlock its long-awaited petroleum potential.
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