NAIROBI: Kenya's state-run National Oil Corporation will raise $2 billion to take stakes in oil blocks on behalf of the government once they near commercial production, it said on Wednesday.
Kenya estimates its crude oil reserves to be about 1 billion barrels and the government can legally take a stake in oil blocks under commercial production through National Oil.
The oil firm would raise the money through internal sources, external debt and other equity partners, Joram Temesi, the firm's spokesman told Reuters.
It was not immediately clear how much of the oil block National Oil would be buying, and whether the amount it plans to raise would be sufficient for the stakes that it requires.
National Oil would buy stakes in blocks 10 BB and 13 T, owned by Tullow Oil and its partner Africa Oil.
The oil firms are expected to submit plans to the government for the commercial development of their discoveries on the oil blocks located in northwest Kenya by late 2015.
Africa Oil, which has a 50 percent stake in both Block 13T and Block 10 BB, said late last year it wanted to reduce its holding to about 25 percent by 2016 by selling to a new partner and raise cash to pay for oil production.
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