HomeRegional NewsEast AfricaKenya and Canada sign production sharing agreement

Kenya and Canada sign production sharing agreement

Nairobi, Kenya — ESI-AFRICA.COM — 04 August 2011 – The government of Kenya has signed a production sharing agreement for a block in its northeast with Canadian oil and gas explorer Simba Energy Incorporated, which focuses on underexplored and overlooked onshore basins in Africa.

The company said the Ministry of Energy had awarded it Block 2A, comprising 7,801.72 sq km in northeast Kenya on the southern part of the Mandera Basin, which also extended into the Anza Basin.

The Vancouver-based firm, which is also conducting exploration in the Republic of Guinea, Liberia, Mali and Ghana, said in a statement released here that its first task would be to re-interpret all existing data on the block.

It would also start baseline environmental work that would support the design and planning of a new seismic acquisition programme.

Oil exploration interest is picking up in Kenya and across east Africa as firms search for new sources amid political upheaval across North Africa and the Middle East, and increasing energy nationalism in other parts of the world.

On Monday, Dominion Petroleum announced that it had secured a second Kenyan offshore exploration block, and was expected to sign a production sharing contract in the coming weeks.