Talks on Sh14bn oil permit cancellation claim stall
What you need to know:
- Kenya was represented by Attorney-General Githu Muigai while Vanoil Energy had interim president and chief executive officer Don Padgett hold forte.
- Vanoil Energy, the firm that was licensed to explore for oil and gas in blocks 3A and 3B in Garissa, is demanding Sh13.7 billion ($150 million) from the government as compensation following revocation of its permits by Cabinet Secretary for Energy and Petroleum Davis Chirchir in February last year.
- The dispute is now headed to the Cabinet for further discussions. According to the government, Vanoil failed to carry out the minimum exploration work on the blocks as required under the production sharing contract hence the decision to terminate their engagement.
Talks between the government and a Canadian exploration company seeking Sh14 billion for a cancelled licence have collapsed.
Kenya was represented by Attorney-General Githu Muigai while Vanoil Energy had interim president and chief executive officer Don Padgett hold forte.
The discussions held two weeks ago ended with no deal.
“What came out of the meeting is that they (Vanoil) have no intention of coming back. They are interested in monetary compensation from the government,” Mr Daniel Kiptoo, the petroleum legal advisor for the Energy Cabinet secretary said on phone.
Vanoil Energy, the firm that was licensed to explore for oil and gas in blocks 3A and 3B in Garissa, is demanding Sh13.7 billion ($150 million) from the government as compensation following revocation of its permits by Cabinet Secretary for Energy and Petroleum Davis Chirchir in February last year.
The dispute is now headed to the Cabinet for further discussions. According to the government, Vanoil failed to carry out the minimum exploration work on the blocks as required under the production sharing contract hence the decision to terminate their engagement.
“The issue will be referred to Cabinet by the Cabinet secretary and the Attorney-General for further discussion,” Mr Kiptoo added.
