An oil rig in East Africa. (Photo Courtesy The Daily Nation)

Nairobi — Kenya's search for oil will intensify with the drilling of oil at Boghal near Isiolo in the next two weeks.

Energy minister Kiraitu Murungi said the government had signed 18 oil production sharing contracts in the last 18 months noting that they were at various stages of exploration.

Speaking during the opening of the second South-South meeting on gas and oil management at Windsor Golf and Country Club in Nairobi, the minister said exploration had been stepped up in recent years. He said there were high hopes that the country could strike oil soon.

"For many years, Kenya has been part of the neglected East African exploration frontier. However, in the last five years, we have intensified the search for oil and gas in all our sedimentary basins," said Mr Murungi.

He said China National Offshore Oil Corporation, which will undertake the drilling, was mobilising the equipment for sinking the well.

The minister said the well would be five kilometres deep and is estimated to cost the company $26 million (Sh2 billion).

This is the second major attempt at finding oil in recent years after an Australian company, Woodside Energy sank Sh5 billion into the three-kilometre deep well off the Lamu coast that bore no fruit.

"This will be the deepest well ever drilled in Kenya. With the discoveries in Sudan, Uganda and Tanzania, we believe Kenya is now standing at the door. It is only a matter of time," said Mr Murungi.

He said there was need to sharpen negotiation skills to manage the anticipated oil revenue to benefit the people, noting that the country would learn from the ongoing conference.

Mr Murungi, however, warned that increased agitation by non-governmental organisations could slow down efforts at exploiting the country's oil potential.

He said some associated oil exploration with dictatorship, imperialism, exploitation, neglect of agriculture, marginalisation and civil strife on the continent.

The minister said Kenya would strive to benefit the communities residing where oil will be discovered to alleviate poverty.

Vice-President Kalonzo Musyoka, who represented President Kibaki at the opening ceremony, said it was projected that oil and gas would account for two thirds of global energy consumption by 2020.

Out of this, 80 per cent in oil demand will be in developing countries, which will account for 46 per cent of the world oil consumption by 2025.

The conference ends on Thursday.