Kenya’s state-run oil company National Oil has announced that it will raise US$2bn to buy stakes in oil blocks on behalf of the government in the country
Joram Temesi, an official source, said that the company will raise the money through internal sources, external debt and other equity partners.
Kenya has an estimated one billion barrels of crude oil reserves and the government can legally take a stake in oil blocks under commercial production through National Oil, added Temesi.
“Although it is not clear the value of oil blocks that National Oil will be buying, the company will buy stakes in Block 10 BB and Block 13T in Kenya, owned by Tullow Oil and its partner Africa Oil,” noted the source.
Africa Oil has a 50 per cent stake in both Block 13T and Block 10 BB.
Temesi revealed that Africa Oil and other oil firms in Kenya have to submit plans to the government for the commercial development of their discoveries on the oil blocks located in northwest Kenya by late 2015.
