Kenya is making a bold push to rejuvenate its upstream oil and gas sector in 2026, aiming to attract fresh global investment after years of project delays and company withdrawals. The government plans to open 50 newly redesigned exploration blocks for bidding in the second half of the year, supported by a national petroleum data centre that will give investors easier access to critical geological and seismic information.
The 50 blocks were reshaped from an initial 63, following detailed analysis of geological data and international best practices. The reconfigured blocks focus on regions with the highest potential for oil and gas discoveries. Most are located in the Lamu Basin, while the Tertiary Rift, Anza Basin, and Mandera Basin will also feature several high-potential blocks.
Daniel Kiptoo, Director General of the Energy and Petroleum Regulatory Authority (EPRA), said interest is rising among national and international oil companies. “We are seeing a lot of interest from both national oil companies and private sector players from different regions of the world, but competition for capital remains intense,” he noted. He explained that banks had previously been reluctant to fund projects in frontier markets like Kenya, but changing global financing trends are now opening opportunities for upstream development.
The reconfiguration of the blocks follows the Petroleum Act of 2019, which allows authorities to redraw blocks through official Gazette notices. Lower-value areas were merged into larger, more manageable blocks, and regions with stronger geological indicators were prioritized. Under the revised structure, the Lamu Basin will now have 29 blocks, the Tertiary Rift 12, the Anza Basin six, and the Mandera Basin three, creating a more strategic and investor-friendly layout.
Kenya’s most advanced oil project remains the South Lokichar Basin in Turkana County, where commercial discoveries date back to 2012. Gulf Energy’s $120 million acquisition of key blocks in 2025 requires parliamentary approval of a revised Field Development Plan before large-scale production can begin. Authorities aim to start commercial oil production and first exports by late 2026 or early 2027, initially producing 20,000 to 50,000 barrels per day, with potential to expand beyond 60,000 bpd in later phases. With newly designed blocks, a centralised data centre, and renewed global interest, Kenya is positioning itself as a compelling destination for oil and gas investment amid evolving energy markets.
source: businesstoday