KenGen is about to signal a contract and begin geothermal drilling for a undertaking in Tanzania as a part of the state-owned agency’s efforts to diversify income streams.
Throughout the subsequent month, Kenya’s state-owned energy era firm KenGen is anticipated to signal a contract and drill for 3 geothermal exploration wells in Tanzania. This follows up on KenGen’s efforts to pursue drilling contacts in Tanzania that was reported in mid-2023.
The drilling contract is a part of KenGen’s bold diversification technique, through which the corporate seeks to amass new income streams by providing industrial drilling providers, geothermal consulting, and different associated providers throughout Africa. KenGen has already supplied geothermal drilling providers to tasks in Djibouti and Ethiopia.
No particulars had been revealed but on which undertaking KenGen will probably be drilling for, however there are ongoing efforts within the Ngozi, Songwe, and Natron prospects in Tanzania.
Based on KenGen Managing Director and CEO Peter Njenga, the drilling contract is anticipated to spice up the corporate’s internet earnings by 59.5% by June 2024, in comparison with final 12 months’s figures. Njenga described the Tanzania contract as a “small undertaking which we intend to be completed inside three months,” however the firm can also be negotiating for geothermal exploration work in Malawi, Zambia, and Rwanda.
On the native entrance, KenGen has indicated plans to focus extra on rising geothermal put in capability in Kenya amidst low hydropower output due to low water ranges.
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