A consortium of exploration companies are currently in discussion with the Kenyan government over securing exploration and production licenses off the coast of Kenya.
BG Group Plc, Premier Oil, Cove Energy and Pancontinental are negotiating with the Kenyan Ministry of Energy over permits for Blocks L10A and L10B.
These new Blocks would be in addition to Blocks L6 and L8 already held by Pancontinental.
If the licenses are agreed BG will have a 40 per cent stake in the first licence, while Premier, Cove and Pancontinental will have a 20 per cent, 25 per cent and 15 per cent stake respectively.
Although Kenya has no confirmed oil reserves, East Africa has become an industry focus after offshore gas discoveries in Tanzania and Mozambique and billions of barrels of oil in Uganda.
Barry Rushworth, chief executive and director of Pancontinental said that he was delighted to announce the negotiations and that "the exploration programme we are discussing is effectively a "fast track" to drilling in this highly promising exploration province."
Posted by Neil King