Total buys offshore oil exploration blocks

French oil multinational, Total, has acquired five offshore oil exploration blocks in the Lamu basin.

The firm announced Wednesday that it will be purchasing 40 per cent of the block through a subsidiary Total E&P Kenya B.V., subject to the approval of Kenyan authorities.

The oil multinational also has a controlling majority stake in Total Kenya, the Nairobi Stock Exchange listed oil marketer.

The acquisition will see it partner with two other firms in exploring more than 30,500 square kilometres on the Kenyan coast.

“This transaction is part of a bold exploration strategy that consists of acquiring large stakes in high-potential frontier plays,” Mr Marc Blaizot, Total’s senior vice president, exploration, said in statement posted online by the company.

When contacted by the Nation, the Nairobi office confirmed the acquisition.

Through Total E&P Kenya BV, the multinational will acquire a 20 per cent stake from Anadarko Kenya Company, which will continue to be operated with a 50 per cent interest.

The French firm will also have a 5 per cent stake from Cove Energy, which will maintain a 10 per cent interest and a 15 per cent stake from Dynamic Global Advisors.

The later is selling all of its interest to Total E&P Kenya BV.

The acquisition, if successful, will be part of the company’s focus on exploration in the region, in addition to its oil marketing business.

The firm is involved in exploration and development of reserves in Uganda’s Lake Albert region, and was selected to develop exploration activities in Tanzania.