The company said it will operate this block with a 60% working interest.

The block has seen one well drilled in it previously, and this well, the Simba-1, encountered gas shows in the tertiary and upper Cretaceous.

The Simba results suggest a working hydrocarbon system in the Lamu basin and offshore oil seeps have also been identified to the north of Block L9, the company said.

The award of the L9 block is subject to the signature of a production sharing contract (PSC) by Dominion and Kenya’s Ministry of Energy next month.

Following signature, the initial exploration period of the PSC will last for two years, Dominion said.

During this time, a gross minimum work commitment of $6.15m inclusive of the acquisition of 500 square kilometres of 3D seismic data is required.

Following the initial period, there is an option to relinquish the PSC or commit to another two-year exploration period with the obligation to drill one well in that period.