Kenya’s first-ever discovery could generate billions

NAIROBI, May 21, 2014 – Kenya’s first-ever oil discovery, which was made by Tullow Oil in block 10BB/13T, could generate up to $10 billion for the country, according to an article published on May 19 by Energy Global. Other international oil companies are being given the chance to reap benefits from the country’s untapped resources when Kenya launches its first bid round later this year.

Kenya has postponed the first ever licensing round to the fourth quarter of 2014, which, argues an analyst with GlobalData, could allow time for additional discoveries and field development, thus raising the profile for investment opportunities in its acreage.

A potentially unfavourable piece of legislation that is currently in the works is the source of the delay, according to GlobalData. The new energy bill is currently being modified to include royalties, gas-sharing terms and a windfall profits tax, and is likely to include new regulatory requirements, such as environmental and local content benchmarks.

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