Global Trade

Qatar Buys Kenyan Indian Ocean Oil Blocs

The Government of Qatar, through the state-owned Qatar Petroleum, ostensibly bought three oil exploration blocs in the Indian Ocean within Kenya's territory.

Aug 28th 2019 ยท 1 min read
Qatar Petroleum headqaurters in Doha
Qatar Petroleum headqaurters in Doha

The three blocs are said to be adjacent to the region that has been the subject of a maritime dispute between Kenya and Somalia.

People Daily reported that Qatar Petroleum signed the deal with Total, a French multinational oil and gas company, and the Italian-rooted Eni both which have ownership of the oil fields.

The Qataris are to take over 25 per cent of the stakes at offshore L11A, L11B and L12 blocks, which are not part of the dispute.

An image of the oil and gas exploration blocs at the Kenyan Coast. The Qataris are to take over 25 per cent of the stakes at offshore L11A, L11B and L12 blocks
An image of the oil and gas exploration blocs at the Kenyan Coast. The Qataris are to take over 25 per cent of the stakes at offshore L11A, L11B and L12 blocks

Total made an entry in Lamu Basin in 2011, when it acquired 40 per cent interest in five exploratory blocks- L5, L7, Lila, LI lb and LI 2 from Anadarko Kenya Co, Dynamic Global Advisors and Cove Energy PLC.

The Italian company, Eni has a 41.3 per cent participating interest. Total will keep a 33.8 per cent interest.

The three offshore blocks are situated in what is considered to be a frontier and largely unexplored area in the Lamu Basin.

The oil blocs that have been sold to the Qatari government are said to be approximately 15,000 square feet with water depths ranging from about 1,000 metres to 3,000 metres.

The ship carrying Kenya's first batch of crude oil leaves Kipevu oil terminous. The oil was sold to a UK-based Chinese firm ChemChina.
The ship carrying Kenya's first batch of crude oil leaves Kipevu oil terminous. The oil was sold to a UK-based Chinese firm ChemChina.

The first exploration well is scheduled for drilling by the State-owned company in the first half of 2020.

This sale comes barely three days after President Uhuru Kenyatta flagged off a ship carrying Kenya's first batch of exported crude oil.

The oil, drilled in the Lokichar Basin in Turkana County, was sold to a UK-based Chinese firm, ChemChina.

last updated: 2019-08-28@10:08