National Oil petrol station (photo/standard digital)
The Kenyan Government is planning on raising $1 billion (Sh100 billion) by listing its National Oil Corporation at home and on the London Stock Exchange by early 2019.
This is aimed at buying a share of two oil blocks held by Tullow and its partners.
The two oil blocks ,13T and 10 BB are situated in Turkana county.According to Energy Principal Secretary Andrew Kamau,Kenya needs back in rights.
Back in rights are an option granted to governments to acquire a share of blocks where oil had been struck after an initial sale to firms in the exploration phase.
Oil was discovered in Kenya in 2012 and its full production is expected in 2021 after the completion of a $2.1 billion crude oil pipeline linking the oil fields with the proposed port of Lamu on the Indian Ocean Coast.
The state-owned company, Kenya National Oil Corporation is tasked with handling the government’s interest in both the upstream and downstream activities in the oil business.
It owns exploration blocks and also has petrol stations in Kenya with about a 5 percent share of the fuel retail market.Mr Kamau also revealed plans by the government to issue bonds locally and abroad to raise funds for investment in the petroleum sector.