NAIROBI: VANOIL Energy announced it was is taking the government to court over disputed oil blocks onshore Kenya, which the company acquired in 2007.
Through a statement, Vanoil, an oil and gas company with a portfolio of assets in East Africa and Seychelles in the western Indian Ocean, had in February 2014 announced that it had ongoing negotiations with the government with respect to the extension of Vanoil’s Production Sharing Contracts (“PSCs” ) over Block 3A and Block 3B.
The negotiations have since collapsed and the company is now going to court in accordance with the arbitration rules adopted by the United Nations Commission on International Trade Law.
James Passin, Chairman of Vanoil, stated his company was taking legal action.
“Vanoil believes the economic value of Blocks 3A and 3B may have materially increased. While we would have preferred to proceed with the two well program approved by the Ministry of Energy, we are looking forward to vigorously pursuing all legal remedies,” said Passin.
According to Vanoil, the blocks cover 24 912 km2 in Kenya’s Anza Basin and are geologically analogous to the prolific Muglad and Melmut Basins of South Sudan and geographically in close proximity to the recent PaiPai and Sala-1 discoveries in Kenya.
“Vanoil will now seek arbitration in order to recover its significant investment and lost profit opportunity in Blocks 3A and 3B,” said the company in a statement.
SOURCE: CAJ NEWS AGENCY