Oil Exploration Now Renews Hopes of a Major Discovery in Kenya
Published onMonday 22nd March 2010
The latest news in the battle for control of acreage in Kenya hasbeen a sensational dispute for control of 10BB pitting the TSX-listedcompany Centric Energy against Tullow International of the UK.
One of the largest independent oil and gas exploration companies,with spectacular success in Uganda, Tullow had written to PrimeMinister Raila Odinga protesting that the Ministry of Energy hadbypassed the negotiations it was conducting with the government toacquire the block and gone ahead to award the block to little-knownCentric Energy, which is associated with London-based businessman AlecRobinson.
But the dispute would appear to have been resolved after theMinistry of Energy wrote a letter to Centric suggesting the Canadiancompany allow a farm-in on a 50:50 basis with Tullow.
"This kind of arrangement is best done and agreed between theinterested parties, and this is, therefore, to request you to initiatea dialogue with Tullow on terms which would mutually serve your jointinterests," said Mr Nyoike in a letter to Mr Robinson.
Negotiations between Tullow and Centric commence this week.
Whether the parties will agree remains to be seen in view of thefact that Centric Energy had earlier indicated that it preferred afarm-in deal with Heritage Oil of the UK -- currently engaged in anexplosive battle with Tullow for control of oil stakes in Uganda.