NAIROBI, Kenya, April 18 (UPI) -- The Chinese National Oil Onshore Co. has signed an oil exploration contract with the Kenyan government, Kenya's The Standard newspaper reported Tuesday.
Permanent secretary in Kenya's Ministry of Energy, Patrick Nyoike, said negotiations for the contract, for oil exploration along the Kenyan coastline, were being finalized, but that drilling to determine the quantity of deposits would begin in September.
"After drilling they will decide whether to sink and dig, but I believe that Lamu has a great potential for oil discovery," Nyoike said, adding the ministry expected the drilling to last for 12 months.
In addition to the Chinese deal, Kenya's Ministry of Energy has a number of projects in the pipeline.
According to Nyoike, Kenya has signed a memorandum of understanding allowing a private company to set up a gas import facility in Mombassa.
The Kenyan government is contemplating a long-term gas import contract with Iran, The Standard reported.
Kenya has bee focusing on natural gas imports, Nyoike said, because it was the cheapest form of fuel. In Tanzania, which has recently discovered some natural gas deposits, gas is 30 percent cheaper than oil.
