Vanoil sent away from Kenya for breach of contract (article)
williamboni, it appears as though you were right with your analogy: 3 DAYS AGO Canada-based oil and gas explorer sent away for breach of contract The government has kicked out an international oil prospecting company for flouting contract terms as the state cracks the whip on speculators in oil and gas fields. PHOTO | FILEAn offshore oil rig. The government has kicked out an international oil prospecting company for flouting contract terms as the state cracks the whip on speculators in oil and gas fields. PHOTO | FILE An offshore oil rig. The government has kicked out an international oil prospecting company for flouting contract terms as the state cracks the whip on speculators in oil and gas fields. NATION MEDIA GROUP In Summary Vanoil chairman James Passin in regulatory filings to the Toronto Stock Exchange on Monday said talks with the government to renew the licences were ongoing. The government has kicked out an international oil prospecting company for flouting contract terms as the state cracks the whip on speculators in oil and gas fields. Vanoil Energy Ltd, a Vancouver-based Canadian international oil and gas development company acquired licences in 2007 in two blocks near the border with Somalia, Anza Basin, but is yet to begin work. “They (Vanoil) kept asking for extensions after another. Their work programme for the past seven years show no progress,” said Energy cabinet secretary Davis Chirchir. The move comes barely a year after Norwegian oil giant Statoil was expelled from exploring oil in the country for flouting contract terms. “We need serious prospectors. We do not want those that are awarded licenses only for them to come back and request for permission for a farm-in with other bigger exploration and production firms,” added Mr Chirchir. Farm-ins and farm-outs in industry terms refer to selling of part interests of a block licensed to another prospector. In petroleum law, this must be approved by the minister responsible for energy. Vanoil chairman James Passin in regulatory filings to the Toronto Stock Exchange on Monday said talks with the government to renew the licences were ongoing. “These talks are now at a key stage and the company expects them to conclude imminently. At such time, Vanoil will provide an immediate information update to the market,” it said in a statement to the Toronto Ventures Exchange. In offshore Kenya, the company anticipates the receipt of its 10 per cent working interest in Block L9 alongside Dominion Petroleum Kenya Limited and FAR Limited. This block lies directly south of Block L8 which hosts the Mbawa gas discovery made in 2012. Efforts to reach Vanoil’s officials did not bear fruit. Statoil’s licence was withdrawn following its failure to stick to the 3D seismic survey, which is a more accurate exploration tool compared to the 2D that Statoil preferred. In recent months, Kenya has been a hotbed for oil and gas exploration after back-to-back discoveries, including Kenya’s seventh oil find announced by British explorer Tullow Oil in January. The exploration campaign has so far attracted 24 prospectors with nine new sites set for licensing shortly amid increased demand for oil blocks in East Africa. Bidding rounds Some eight new blocks have been created and are planned for leasing through bidding rounds. Blocks L25 and L26 are found at the Lamu Basin were repossessed from Statoil. Two blocks — 15T, 10B — were surrendered by British firm Tullow Oil, where it made twin commercial discoveries from two wells in 2012. Four other blocks in Lamu — L4A, L29, L30 and L31— previously licensed to American company, Anadarko Corporation, have also been delineated while blocks L25 and L26, also within Lamu which were repossessed from Norwegian state firm Statoil are slated for bidding. Under petroleum laws known as production sharing contracts, exploration firms must cede 25 per cent of their licensed acreage over an agreed time frame. https://www.nation.co.ke/business/Canada-based-oil-and-gas-explorer-sent-away/-/996/2196764/-/1w2pvx/-/index.html