This archive report was first published on 25 July 2019.
On July 25, 2019, Qatar Petroleum made a significant investment in Kenya's oil sector by acquiring a 25% stake in three offshore oil blocks in Lamu. The blocks, L11A, L11B, and L12, are located in water depths ranging from 1,000 to 2,700 meters and cover a total surface area of approximately 15,000 square kilometers.
The acquisition is a significant boost to Kenya's oil sector, which has faced anxiety following a flurry of exits by international oil firms in recent years. Qatar Petroleum's investment is in addition to Qatar First Bank's existing ownership of two oil blocks through a local affiliate.
Eni, the current operator of the blocks, will retain its 55% stake, while Total will maintain its 45% stake. Qatar Petroleum's 25% stake will be acquired from Eni (13.75%) and Total (11.25%).
Qatar Petroleum's President and Chief Executive, Saad Sherida Al-Kaabi, expressed optimism about the potential of the blocks, stating, "We hope that the exploration efforts are successful, and we look forward to collaborating with our valuable partners Eni and Total, and the government of Kenya in these blocks."
The acquisition is subject to regulatory approvals by the government of Kenya.
Qatar Petroleum's investment in Kenya's oil sector is a significant development, and it remains to be seen how it will impact the sector's growth and development.
