{"id":1330,"date":"2014-06-30T09:55:50","date_gmt":"2014-06-30T06:55:50","guid":{"rendered":"http:\/\/oilnewskenya.com\/?p=1330"},"modified":"2015-09-04T09:28:48","modified_gmt":"2015-09-04T09:28:48","slug":"more-oil-blocks-expected-to-be-relinquished-in-201415-experts","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/more-oil-blocks-expected-to-be-relinquished-in-201415-experts\/","title":{"rendered":"More Oil blocks expected to be relinquished in 2014\/15 \u2013 Experts"},"content":{"rendered":"

[twitter-follow screen_name=’oilnewskenya’]<\/p>\n

More companies are expected to lose their blocks in Kenya as a result of relinquishments in the coming months.<\/p>\n

This is in compliance to their production sharing contracts\u00a0that demand that explorers relinquish everything in case no discovery is made by the third phase.<\/p>\n

In the first and second phases companies are expected to relinquish 25 percent of their acreage from where they are expected to have carried out studies and seen no viability.<\/p>\n

Some of the blocks will however may be lost as some companies are yet to start any works on their blocks despite their time schedules running out.<\/p>\n

According to oil expert Mwendia Nyaga it is however up to the government to enforce that the relinquishment actually takes place.<\/p>\n

\u201cAfter two to three years of each phase the explorers are expected to surrender a certain percentage back to the government unless the minister for energy approves otherwise. I can already foresee a lot of relinquishment in 2014-15, the problem is that historically companies have always given reasons why they should not cede,\u201d he says.<\/p>\n

The government is however seeming more determined to repossess such blocks from license holders who seem to be more of speculators if the Vanoil\u2019s<\/a> case is anything to go by.<\/p>\n

According to mining cabinet secretary Najib Balala his ministry will be blacklisting companies that breach contracts in terms of return of exploration land in the end of their time.<\/p>\n

\u201cWe are working to ensure that we have a digital database that will ensure that once your time is up and you do not abide by your contract the system checks you out automatically,\u201d says Balala.<\/p>\n

\u201cSome of the holders of licenses seem to have received them with no intention of carrying out any work but to wait for the Chinese to come and sell equity to them to simply make a kill.\u201d<\/p>\n

Energy cabinet minister Davis Chirchir has also in the past days said the government may be speeding up the allocation of some 15 blocks that are unlicensed (8 of which are as a result of relinquishment) to ensure that plans<\/a> being made by his ministry are supported by facts on the ground.<\/p>\n

\u201cCurrently we want to build a pipeline starting in Lokichar to Lamu since some of the oil that we have discovered is there but what if we find oil elsewhere,\u201d he asks. \u201cWill it still be wise to still use the same route, that is why we need to license the free blocks fast so that studies can be carried out.\u201d<\/p>\n

Chirchir told journalist at the side lines of the Oil and Energy local content convection that his ministry was discussing internally as to whether new block licensing would be done prior or after the enactment of an energy bill expected later this year.<\/p>\n

[twitter-follow screen_name=’oilnewskenya’]<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

[twitter-follow screen_name=’oilnewskenya’] More companies are expected to lose their blocks in Kenya as a result of relinquishments in the coming months. This is in compliance to their production sharing contracts\u00a0that … Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":1331,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7,11],"tags":[539,569,1084,1252,1284,1376,1444,1596,1663,1672,1855,2085,2092,2135,2669],"class_list":["post-1330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-politics","category-top-news","tag-crude-oil-pipeline","tag-davis-chirchir","tag-hoima","tag-kenya","tag-kenyas-ministry-of-energy-petroleum","tag-lamu","tag-lokichar","tag-ministry-of-mining","tag-mwendia-nyaga","tag-najib-balala","tag-oil-blocks","tag-production-sharing-contract","tag-psc","tag-relinquishment","tag-vanoil-energy","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/oil-block-status-e1404111318465.jpg?fit=333%2C400&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-ls","jetpack-related-posts":[{"id":4691,"url":"https:\/\/www.oilnewskenya.com\/index.php\/kenya-to-auction-17-new-oil-exploration-blocks-in-2017\/","url_meta":{"origin":1330,"position":0},"title":"Kenya to auction 17 new Oil Exploration Blocks in 2017","author":"","date":"May 16, 2016","format":false,"excerpt":"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\u2019s first competitive round. 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According to energy principal secretary Joseph Njoroge the new law will align to constitutional alignments. \u201cWe have opted to freeze licensing for oil prospectors until we have\u2026","rel":"","context":"In "Oil Politics"","block_context":{"text":"Oil Politics","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/oil-politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/01\/kenya-exploration-status-march-2010.jpg?fit=1089%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/01\/kenya-exploration-status-march-2010.jpg?fit=1089%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/01\/kenya-exploration-status-march-2010.jpg?fit=1089%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/01\/kenya-exploration-status-march-2010.jpg?fit=1089%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/01\/kenya-exploration-status-march-2010.jpg?fit=1089%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":2922,"url":"https:\/\/www.oilnewskenya.com\/index.php\/kenya-oil-gas-upstream-sector-fact-file-shortened\/","url_meta":{"origin":1330,"position":2},"title":"Kenya Oil and Gas (upstream) sector fact file – shortened","author":"","date":"May 15, 2015","format":false,"excerpt":"Source: Ministry of Energy and Petroleum 1950-1992: \u00a030 wells drilled by international oil companies in Kenya\u2019s sedimentary basins. Two more wells drilled in the period stretching to 2010. None of them was a discovery. Basically 1992 to 2005 was a dormant period that saw zero wells drilled. 2012: Ngamia 1\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/human-rights.jpg?fit=668%2C444&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/human-rights.jpg?fit=668%2C444&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/human-rights.jpg?fit=668%2C444&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":3265,"url":"https:\/\/www.oilnewskenya.com\/index.php\/erin-energy-enters-next-phase-exploration-kenyas-block-l1b-l16\/","url_meta":{"origin":1330,"position":3},"title":"Erin Energy Enters Next Phase Of Exploration In Kenya’s Block L1B And L16","author":"","date":"August 23, 2015","format":false,"excerpt":"The Kenyan Government has granted Erin Energy approval to enter the First Additional Exploration Period (FAEP) on its onshore blocks, L1B and L16. This follows Erin Energy\u00a0completion of the required work program for the Initial Exploration Period of the blocks earlier this year where it announced it had exercised its\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/camac.png?fit=626%2C489&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/camac.png?fit=626%2C489&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/camac.png?fit=626%2C489&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":3250,"url":"https:\/\/www.oilnewskenya.com\/index.php\/zarara-oil-gas-drill-well-block-l4-q2-2016\/","url_meta":{"origin":1330,"position":4},"title":"Zarara Oil and Gas to drill well in Kenya’s Block L4 in Q2 2016","author":"","date":"August 17, 2015","format":false,"excerpt":"Zarara Oil and Gas plans to drill a well in Block L4 in 2016 after postponing its earlier planned date in 2015 according to a company representative who spoke to OilNews Kenya. With the postponement the company will be banking on the hope that the Ministry of Energy will be\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/08\/Midway-Resources.png?fit=405%2C252&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3056,"url":"https:\/\/www.oilnewskenya.com\/index.php\/erin-energy-seeks-first-exploration-extension-period-kenyas-block-l1b-l16\/","url_meta":{"origin":1330,"position":5},"title":"Erin Energy Seeks First Exploration Extension Period on Kenya\u2019s Block L1B and L16","author":"","date":"June 9, 2015","format":false,"excerpt":"Erin Energy formerly CAMAC Energy has said met with the government of\u00a0Kenya\u00a0and has requested approval to move into the first exploration extension period on blocks L1b and L16 having completed preliminary interpretation of the seismic acquisition. 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