Kenya Oil and Gas Exploration and Production Market Volumes and Forecast by Terrain, Assets and Major Companies, 2021-2025

Kenya currently has no oil or gas production since the early oil pilot scheme in Blocks 13T and 10BB contracts expired in 2020. However, the outlook for Kenya’s oil and gas industry has promise as the first phase of the country’s oil development has already seen its first exports from an early production scheme which successfully produced over 320,000 barrels of crude oil, however, FID on the full field development has yet been made. The companies involved being Tullow, Total, and Africa Oil Crop have significant experience in Africa and should be able to source funding for the development despite calls for more environmentally friendly investment and the COVID-19 pandemic causing companies and banks to re-evaluate capital allocation.

The fields in the Lokichar Basin are planned to be split into two major phases, South Lokichar phase 1 and South Lokcihar phase 2 with total reserves of approximately 540 million barrels of oil. Phase 1 will consist of three fields; Ngamia, Twiga, and Amosing, while phase 2 will consist of four fields; Agete, Ekales, Erut, and Etom. All fields lie in Blocks 10BB and 13T. The first phase is forecast to begin production in 2024 however the date of the first production will be contingent upon the start of Phase 1.  Currently, 48 licenses are held by various E&P companies with Total, Tullow, and Eni holding the most for a single company at 7, 4, and 6 respectively. The companies involved in the development are Total SA, Tullow, and Africa Oil Corp who have struggled to take FID on the full field development for many reasons. FID is now anticipated for 2021 in which case the first oil is estimated for 2024.

What are the market dynamics of Kenya’s exploration & production sector?

Kenya’s oil and gas industry is currently in nascent stages and is trying to finalize investments to develop its natural resources based in the Lokichar Basin in the North-West of the country. The first discoveries were made 8 years ago and although there have been signs of full development, a final investment decision (FID) has yet to be made. The country’s first licensing round was held in 2014 after much delay due to the introduction of a new energy bill which contained significant changes to the fiscal and regulatory environment. Currently, 48 licenses were held by various E&P companies with Total, Tullow, and Eni holding the most for a single company at 7, 4, and 6 respectively. In 2019, the country saw its first export of crude oil from the port of Mombasa with a cargo of 240,000 barrels of crude oil sold to ChemChina with a price discount to Brent of $3.5 per barrel. This export came from the early production scheme at the South Lokichar fields and 2,000 barrels per day were trucked to the port. The companies involved in the development are Total SA, Tullow, and Africa Oil Corp who have struggled to take FID on the full field development for many reasons. FID is now anticipated for 2021 in which case the first oil is estimated for 2024.

Post-2017 there has been minimal exploration activity despite the multiple discoveries in the years prior. There were no discoveries in 2015 however, in 2016 and 2017 there were 3 more discoveries Cheptuket (block operator – Delonex Energy Limited), Erut (block operator – Tullow Oil Plc), and Emekuya (block operator – Tullow Oil Plc). In April 2021 ION Geophysical received a contract for a 3D survey program offshore Lamu Basin from Kenya’s Ministry of Energy and Petroleum signaling the government wishes to explore for further oil and gas resources. In 2020 Tullow Oil suspended its planned farm-down in the country as the partners continued to re-evaluate the development and since then, there has been limited to no activity in the space.

What are the key categories of Kenya’s crude oil and natural gas production?

By terrain, Kenya’s total gross crude oil production is categorized as onshore. Kenya’s gross crude oil and condensate production is categorized by assets including South Lokichar Development (Phase 1) and South Lokichar Development (Phase 2).

Kenya exploration & production sector, by assets

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Which are the major companies in Kenya’s exploration & production sector?

The key companies of Kenya’s crude oil and condensate production include Africa Oil Corp, Total SE, and Tullow Oil Plc. Total SE is the leading company with licensed blocks followed by Tullow Oil Plc, Africa Oil Corp, Eni SpA, National Oil Corporation of Kenya, Octant Energy Corp, Chicason Group, Midway Resources International, and Swissoil Holdings International Ltd.

Kenya exploration & production sector, by key players

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Market report scope

Scope

This report provides an overview of Kenya’s exploration & production sector. The report includes:

• Kenya’s oil and gas production outlook by assets terrain, and major companies.
• Key details of active and upcoming oil and gas assets in the country.
• Recently licensed blocks details, licensed blocks count by company, and latest discoveries.
• Latest mergers and acquisitions, and awarded contracts related to the E&P sector in the country.

Reasons to Buy

• Gain a strong understanding of the Kenya’s E&P sector.
• Facilitate decision making based on strong historical and outlook of oil and gas production data, licensed blocks details, and discoveries.
• Assess your competitor’s production outlook and licensed blocks count in the country.
• Analyze the latest M&A landscape and awarded contracts related to the country’s E&P sector.