By ALLY JAMAH
A Canadian oil exploration firm whose licence the Government declined to extend may soon be allowed to continue with exploration activities in North Eastern Kenya.
The Standard has established that after a recent visit to some of the exploration blocs granted to Vanoil Energy Ministry of Energy officials had concluded that the firm had legitimate reasons for not meeting the timelines set out in the Product Sharing Contract.
A report by Government geologists shows that the company had successfully undertaken survey and seismic study, but its work was disrupted by insecurity.
The report seen by The Standard says that Vanoil had done “good work” in Block 3A in particular, including 3D seismic data acquisition and well site preparation.
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The report, which has been forwarded to Energy and Petroleum Cabinet Secretary Davis Chirchir and his Principal Secretary indicates that Vanoil’s work was disrupted by insecurity.
Accusations
The report expresses confidence that the current stalemate between the Energy Ministry and the oil exploration firm will be resolved and the exploration licence extended.
The company had been accused by the ministry of not meeting any of the commitments in the contract signed with the Government. It has spent more than $32 million in Kenya.
The company had defended itself against the ministry’s accusations, saying the security situation did allow it to move forward with the exploration work.
It appears that the latest review report by ministry officials validate this assertion paving the way for its licence to be reinstated.
