President Uhuru Kenyatta and Momar Nguer at Statehouse. [Photo/ Statehouse Kenya/twitter]
Total Company has made an about-turn and agreed on a deal that will see the French company invest in the Lokichar-Lamu Pipeline.
The company had initially abandoned the Kenyan investment and instead chose Uganda and Tanzania for development of oil fields in the East African Region.
On Tuesday the Statehouse Spokesperson, Manoah Esipisu told reporters in a statement that the deal had been brokered in a meeting between President Uhuru Kenyatta and Total SA Executive Committee Member and Marketing President Momar Nguer.
“Following Total SA’s commitment, the government has consented to a proposed acquisition of the issued and to be issued share capital of Maersk Oil Exploration International (Mogas Kenya) in respect to Blocks 10BA, 10BB and 13T,” Esipisu said in the statement.
The spokesman further said that the government was delighted to have Total SA on board and that the it will be accorded the required support.
“The government is optimistic that the entry of Total in to the Joint Venture will strengthen the financial resources and technical competence that is required to accelerate the development of the resources in these blocks,” he added.
The company had withdrawn its commitment of developing the project two years ago citing security concerns for its infrastructure through ‘wild’ North and North Eastern Kenya.