KenGen soon to drill geothermal wells in Tanzania
Drilling rig by KenGen (source: KenGen)
Carlo Cariaga
21 Feb 2024
KenGen is set to sign a contract and start geothermal drilling for a project in Tanzania as part of the state-owned firm's efforts to diversify revenue streams.
Within the next month, Kenya’s state-owned power generation company KenGen is expected to sign a contract and drill for three 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 part of KenGen’s ambitious diversification strategy, in which the company seeks to acquire new revenue streams by offering commercial drilling services, geothermal consulting, and other related services across Africa. KenGen has already provided geothermal drilling services to projects in Djibouti and Ethiopia.
No details were revealed yet on which project KenGen will be drilling for, but there are ongoing efforts in the Ngozi, Songwe, and Natron prospects in Tanzania.
According to KenGen Managing Director and CEO Peter Njenga, the drilling contract is expected to boost the company’s net earnings by 59.5% by June 2024, compared to last year’s figures. Njenga described the Tanzania contract as a “small project which we intend to be done within three months,” but the company is also negotiating for geothermal exploration work in Malawi, Zambia, and Rwanda.
On the local front, KenGen has indicated plans to focus more on growing geothermal installed capacity in Kenya amidst low hydropower output because of low water levels.
Source: Business Daily Africa
