21-10-05 CNOOC (China National Offshore Oil Corporation) has concluded its negotiations with the Kenyan government on oil exploration in the six blocks off the coast of Kenya in the Indian Ocean.
An official contract will be signed in mid-November this year, according to the Kenyan Ministry of Energy.

Commercial exploration indicates that the offshore area of the Indian Ocean along East Africa has a potential value for oil development. Tanzania, a neighbour of Kenya has discovered a natural gas field off its coast that has similar geological structure and put it into operation.
CNOOC has chosen six blocks for exploration. Natural gas was found in one block, coded L-4, as early as at the beginning of the 1980s.

Both Kenya and Tanzania have adopted cooperative exploration to attract foreign capital in the search for oil.
Exploratory companies will enjoy priority for development once reserves are proven.