African Oil Corp., has announced that it has been granted approval from the Government of Kenya to farm-out half of its shares in the three blocks in Kenya to Maersk Oil & Gas.

Under the farm-out agreement, African Oil which is Tullow’s partner in the Turkana exploration fields is to sell its shares on Blocks 10BB, 13T and 10BA in Kenya as well as the Rift basin and South Omo blocks in Ethiopia.

The company is expected to raise approximately Sh35.7 billion from the farm-out. The money is to be used to further advance exploration activities in Kenya.

According to Daily Nation, Tullow and Africa Oil owns and operates the three blocks on a 50/50 basis. First oil discovery was made by the companies on block 10BB in March 2012 and since then, noteworthy deposits of crude oil have been found on the three blocks.

Anita Fatunji