The petroleum industry is broadly divided into three segments namely: upstream (exploration and production), mid-stream (storage, refining and transportation) and downstream (supply and distribution).

The Upstream segment primarily involves the processes of exploration, development and production of crude oil and natural gas. As there is no production in Kenya today, this segment is primarily involved in exploration.

Crude oil has been in use since approximately 2,000BC. In 500B.C. the Chinese, used crude bamboo pipelines to transport oil used for the heating sea water to produce salt. In 347AD, oil wells were drilled/dug to a depth of up to 240m using bits attached to bamboo poles.

The first well drilled in Kenya was in 1960. Since then approximately 30 more wells were subsequently drilled with no commercially significant discoveries. It was not until Ngamia 1 well was drilled in 2012 and made a significant oil discovery that Kenya started gaining significance as a potential oil producer. More discoveries are currently undergoing appraisal with more wells being drilled to evaluate the oil quality and quantity.