(Ecofin Agency) - The Kenyan Ministry of Energy and Petroleum has announced that it will not rush the auction of the 17 new oil exploration blocks made recently even though stakeholders’ interest are increasing.

According to the Principal Secretary for the Ministry, Andrew Kamau, these 17 blocks will in the future be sold at the right price and to the right investor.

“Unfortunately, what we are seeing in a low-priced environment is people come, they get blocks for their own reasons and we don't get the data that we want. We are not in any rush to give out any blocks because it does not meet our strategic intent as a country at the moment,” he said.

Inventors’ attraction to Kenya's oil block has been increasing since February 2012 when Tullow Oil and its equal partner African Oil encountered oil in block 10BB in Lokichar Basin, south of Turkana County. Africa Oil later sold half of its interest in oil-rich blocks 10B and 13T to Maersk Oil. The Lokichar Basin has recoverable reserves of over 750 million barrels.

“It is not a must that we give out blocks, we don't have to. The reason is because we would like to get more and more data. We would also like companies that get these blocks to do some work, pay some fees ... and give us some data,” Kamau added.

The price of the blocks is subject to the level of exploration, including the data available and wells sunk. Creation of new blocks brings the country's total blocks for exploration to 63.

Exploration companies have in the past one year suspended or stalled their operations as a result of the sharp decline in crude oil prices from about $100 per barrel in mid-2014 to about $51.89 for Brent crude oil as at Monday.

“When we get people who want price that we want them to contract at, we will give them licences. But we are not in charity business to give them away,” the Principal Secretary told the Star news.

Anita Fatunji