Kenya Set to Auction Lamu Oil Blocks within One Year

Kenya has revealed plans to auction new oil and gas exploration blocks in its Indian Ocean territory within a year.

The offshore blocks in the Lamu Basin will be put on offer after the collection of seismic data, which is being done by American company ION Geophysical Corp.

The Energy Ministry tapped the Houston-based company to conduct two seismic surveys in the Lamu Basin over the next year.

"We expect to go into bidding round after we have the data after a year. They (ION) will recoup their costs after the bidding," Petroleum and Mining Principal Secretary Andrew Kamau said.

ION, which provides geophysical technology, services, and solutions to the global oil and gas industry, said work in the Lamu Basin will cover approximately 14,000 square kilometers.

So far, prospecting companies have drilled 13 exploration wells in the area without a commercial discovery.

PS Kamau says the blocks to be put on offer are not in the disputed area claimed by Somalia. The two countries are entangled in a maritime border dispute over 100,000 square kilometers in the Indian Ocean thought to be rich in gas and oil deposits.

While Somalia argues its maritime boundary should run in the same direction as the southeasterly path of the country’s land border, Kenya insists the border should take a 45-degree turn at the shoreline and run in a latitudinal line.

Somalia moved to The Hague-based International Court of Justice (ICJ) after talks between the two countries over who owns the area broke down.