PSCs

Tanzania Can Renegotiate Energy and Mining Contracts As New Legislation Passed

The government of Tanzania can now forcefully commence renegotiate of existing contracts with both mining and oil companies undertaking exploration and production in the country after the parliament passed two laws namely the Natural Wealth and Resources (Permanent Sovereignty) and the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) bills yesterday. “Parliament …

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Oyster Oil and Gas Enters Phase III in Djibouti Exploration

Oyster Oil and Gas Ltd. has announced that effective 1st March 2017 it has received Government of Djibouti approval to commence exploration activities under Phase III of the Production Sharing Contract for a duration of three years to the end of February 2020. Over the past 5 years Oyster has undertaken extensive exploration activities across …

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Public hearings on Somalia Kenya Maritime Delimitation Case Set for September

The International Court of Justice (ICJ) will in mid-September commence public hearings in the case concerning Maritime Delimitation in the Indian Ocean (Somalia v. Kenya) with the focus solely on the preliminary objections raised by Kenya on 7 October 2015. Kenya while responding to an Application filed by the Federal Republic of Somalia on 28 …

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Kenya to auction 17 new Oil Exploration Blocks in 2017

The Ministry of Energy and Petroleum has in a gazette notice said it has created an additional 17 new exploration blocks to the existing 46 blocks that had earlier been vacant in the country’s first competitive round. The 17 new blocks have been carved out of the 46 blocks as well as relinquished acreage located …

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Summary on Kenya’s Petroleum Bill 2015, The Associated Model Production Sharing Contract(PSC)Bill 2015

By Berryl Claire Asiago Part 1: Kenya’s recent discovery of oil and gas should accelerate and contribute enormously to the achievement of national objectives, provided that proper policies, laws and strong institutional frameworks are put in place. Challenges lie ahead for Kenya’s nascent industry as with the energy sector at large, in the light of …

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Majority of Petroleum Rights Holding Companies in Kenya Incorporated in Tax Havens

A report by Oxfam dubbed The Use of Tax Havens in the Ownership of Kenyan Petroleum Rights shows that all but five companies that hold petroleum exploration rights have at least one subsidiary listed in a tax haven or low tax jurisdiction as part of their corporate structures that could lead to minimized tax returns. …

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An Analysis of the Petroleum Bill 2015, Model PSC

Source: Oxfam The Petroleum (Exploration, Development and Production) Bill, 2015 and associated model production sharing contract (PSC) are currently in the final stages of Parliamentary review. The development of a new regulatory framework for the petroleum sector was driven by the need to modernize a regime that was first established in 1986 and to take …

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History Of Oil Exploration In Kenya (1950 To 2010)

1950’S – Oil exploration commenced 1960 to 1984 – 16 wells drilled mainly in the Lamu and Anza basins 1981- National Oil was incorporated in 1981 1984 GOK enacted new Petroleum (Exploration and Production) Act. 1986 Petroleum (E & P) Act revised. Royalties replaced by PSC’s 1985 to 1992 – Further 14 wells drilled 1995 …

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Components of Production Sharing Contract in Kenya

Licensing of petroleum exploration blocks, is governed by the Petroleum (Exploration and Production) Act Chapter 308 of the Laws of Kenya. All contracts are based on a Model Production Sharing Contract (PSC) issued as a schedule to the Regulations issued under Section 6 of the Act. The signed Production Sharing Contracts have the following key …

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Oil & Gas Exploration Opportunities in Kenya

Kenya’s Petroleum potential is best depicted by the four large sized sedimentary basins that straddle the Country (sedimentary basins & exploration blocks map). These are Lamu, Anza, Mandera, and Tertiary Rift basins. The sedimentary basins are divided into exploration blocks as shown below.