• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 5 hours Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 16 hours EU to Splash Billions on Battery Factories
  • 20 hours U.S. Shale Oil Debt: Deep the Denial
  • 1 day The Balkans Are Coming Apart at the Seams Again
  • 12 hours Owning stocks long-term low risk?
  • 16 hours The Dirt on Clean Electric Cars
  • 3 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 11 hours The end of "King Coal" in the Wales
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

$4 Billion In Resource Dollars Hitting This Obscure Nation

We saw a major wave of resource investment announcements the past week. Focused on one unexpected part of the world. 

The Eastern African nation of Kenya. 

The country’s oil sector has been a major story the last few years — with significant discoveries by groups like Tullow and Africa Oil turning up potential for billions of barrels in reserves. 

And the country wants to capitalize on this success. 

To do so, state-owned National Oil Company of Kenya (NOCK) announced that it will seek $2 billion in international funding. Which will reportedly be used to finance a participating equity stake of between 15% and 20% in oil discoveries around the country.  Related: Kenya Exploration Strong Despite Oil Price Slump

NOCK’s chief executive officer said the company is “working on the best way to source for the money”. But it certainly appears of late there is considerable interest from international backers for investments of this size in Kenya.

Just look at another recent announcement: successful project funding for a major Kenyan coal-fired power plant.

Last week, the Industrial Commercial Bank of China (ICBC) said it will provide $1.2 billion in funding for the construction of the power plant. A 1,000 MW development being advanced by a consortium of local companies.

The total price tag for the project is expected to be $2 billion. Meaning that the ICBC funding already provides a strong anchor, and should help see the project through to full financing.  Related: Emerging Energy Trends In Africa

It’s of course not surprising to see China stepping in as a major backer here. Given that Chinese firm Fenxi Mining has been one of the pioneers in advancing coal blocks within Kenya. 

The power plant loan may thus be a way of ensuring demand for Fenxi’s product here — and continuing to shore up China’s influence in Eastern Africa. 

A loan to the national oil company might further cement such connections. Don’t be surprised to see an announcement emerging on that front over the coming months. 

Here’s to getting in early,

Dave Forest

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News