The Kenya government has given a greenlight to the acquisition of Maersk Oil and Gas assets in Kenya by Total following the acquisition of 100% of the equity of the Danish E&P company Maersk Oil Exploration International (Mogas Kenya) by the French giant in August 2017.
This gives Total E&P a 25% share in of Blocks 10BA, 10BB and 13T alongside Tullow Oil (operator) and Africa Oil which have 50 percent and 25 percent equity stake respectively.
The commitment was made by Momar Nguer, a member of Total’s Executive Committee and its president for marketing and services when he met President Uhuru Kenyatta at State House, Nairobi.
President Kenyatta welcomed this commitment, which will fasten the development of the resources for the benefit of the Kenyan people.
Prior to the commitment it was largely viewed that Total E&P would arm twist Kenya to joining the East Africa Crude Oil Pipeline (EACOP) running from Hoima, Uganda to Tanga, Tanzania which it is financing to evacuate crude oil from the Albertine basin. Total had been instrumental in scuttling Kenya’s efforts to lure Uganda to build a shared pipeline by preferring the Tanzanian route.
Kenyatta said that Kenya is optimistic that the entry of Total into the Kenya Joint Venture saying it will strengthen the financial resources and technical competence to the Joint Venture and this will go a long way in accelerating the development of the resources in these Blocks.
President Kenyatta said his administration would accord support to Mogas Kenya and Total SA, and indeed other private sector players that are keen to develop the country’s resources with the goal of delivering shared prosperity.
The transaction also gives Total the first onshore acreage in Kenya to compliment its five offshore acreage in blocks L5, L7, L11A,L11B and L12 where it has 40 percent stake.