Government promises Sh300 million annual oil exploration budget (15/02/07)

 

Buoyed by the withdrawal of an Australian oil explorer, the Government is setting up a Sh300 million annual budget for the venture.

 
 
Energy Permanent Secretary, Mr Patrick Nyoike says the Government has embarked on an aggressive campaign to market the country's oil blocks to international oil speculating companies.

"We are going to commit Sh300 million per year to conduct more surveys and gather more data to circulate to prospective companies," Nyoike on Wednesday.

 

Energy Minister, Mr Kiraitu Murungi added his voice of hope, saying the country still stands a chance of striking oil, despite the pulling out of Woodside Petroleum Company from Lamu. Kiraitu said, without giving names, more companies were still interested in the venture in the country.

By the time it was withdrawing, Woodside had spent an average Sh2.5 billion on the project at the Coast.

The minister said oil exploration had not been a priority in the past as only 31 wells have been drilled.

"In Texas alone, more than 100 wells are sunk each year. In Kenya we have only drilled 31. Oil is a very risky business but we are receiving more applications," said Murungi.

The PS said if Kenya failed to strike oil but was lucky to discover gasses, his would be a big boost to the energy sector. On the proposed construction of a pipeline from Juba to Eldoret, Nyoike said that the Government was not involved at all.

"We will continue looking for the best deal for Kenyans. May be when we modernise our refinery we will be able to handle oil products from different sources," said Nyoike.

Kiraitu said so far 16 boarding schools in Mandera, Garissa, Wajir and Ijara districts have been installed with solar power at a cost of Sh56 million.

By the end of this financial year, the minister said, 60 boarding schools would be lit with solar electricity.

Source: The East African Standard

To receive regular email alerts, contact us at updates@developmentprogram.org

Click here for Newsletter Archive

   
 
Home Concept The Issues HDP Events Sustainable Development Stats Info Centre
    Resources BFAFA Support Contact    
  © Copyright Development Program 2007