{"id":1400,"date":"2014-07-07T19:52:26","date_gmt":"2014-07-07T16:52:26","guid":{"rendered":"http:\/\/oilnewskenya.com\/?p=1400"},"modified":"2017-01-31T09:16:52","modified_gmt":"2017-01-31T09:16:52","slug":"vanoil-energy-to-proceed-with-arbitration-after-loss-of-kenyan-blocks-3a-and-3b","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/vanoil-energy-to-proceed-with-arbitration-after-loss-of-kenyan-blocks-3a-and-3b\/","title":{"rendered":"Vanoil Energy to proceed with arbitration after loss of Kenyan blocks 3A and 3B"},"content":{"rendered":"

Vanoil Energy has provided an update on the ongoing negotiations<\/a> with the Kenyan Government with respect to the extension of Vanoil’s Production Sharing Contracts over Block 3A and Block 3B, onshore Kenya.<\/p>\n

Vanoil has decided to proceed with a formal demand for arbitration in accordance with the UNCITRAL arbitration rules adopted by the United Nations Commission on International Trade Law as per the respective PSCs. Furthermore, Vanoil has commenced evaluation of all possible legal remedies the Company may have against the Kenyan Government.<\/p>\n

“Following the discovery of hydrocarbons with oil shows in the Sala-1 well in the Anza Graben announced by Africa Oil Corp. (TSX: AOI), 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 Mr. James Passin, Chairman of Vanoil.<\/p>\n

In Kenya, Vanoil was negotiating<\/a> to extend its interest in onshore Blocks 3A and 3B, originally acquired in October 2007 through the signing of a Production Sharing Contract (PSC) with the Government of the Republic of Kenya.<\/p>\n

These 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.<\/p>\n

In offshore Kenya, Vanoil has a 10% working interest in the highly prospective 5,110 km2 Block L9 alongside Dominion Petroleum Kenya Limited (a wholly owned subsidiary of Ophir Energy plc) and FAR Limited. This block lies directly south of Block L8 which hosts the Mbawa gas discovery made in 2012.<\/p>\n

In offshore Kenya, Vanoil has an interest in Kenyan Block L9. In September 2011, the Kenya Ministry of Energy confirmed the 10% interest of Avana Petroleum Ltd. (now a subsidiary of Vanoil) in the highly prospective 5,110 km2 Block L9 alongside Dominion Petroleum Kenya Limited (a wholly owned subsidiary of Ophir Energy plc (“Ophir”) and Flow Energy Limited (since taken over by FAR Limited).<\/p>\n

In January 2014, the Kenyan Ministry of Energy and Petroleum denied a request by Ophir to assign and transfer a 10% interest to Avana Petroleum Kenya Limited.<\/p>\n

Vanoil notes that this position is inconstant.<\/p>\n","protected":false},"excerpt":{"rendered":"

Vanoil Energy has provided an update on the ongoing negotiations with the Kenyan Government with respect to the extension of Vanoil’s Production Sharing Contracts over Block 3A and Block 3B, … Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":1401,"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":[32,167,208,280,618,620,868,904,1252,1584,1589,1926,2227,2625,2634,2669],"class_list":["post-1400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-politics","category-top-news","tag-3b","tag-anza-graben","tag-avana-petroleum","tag-block-3a","tag-dominion-petroleum","tag-dominion-petroleum-kenya-limited","tag-far-limited","tag-flow-energy","tag-kenya","tag-ministry-of-energy","tag-ministry-of-energy-and-petroleum","tag-ophir-energy","tag-sala-1","tag-uncitral-arbitration-rules","tag-united-nations-commission-on-international-trade-law","tag-vanoil-energy","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/vanoil-block-3a.png?fit=400%2C400&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-mA","jetpack-related-posts":[{"id":432,"url":"https:\/\/www.oilnewskenya.com\/index.php\/vanoil-provides-update-on-license-renewals-in-kenya\/","url_meta":{"origin":1400,"position":0},"title":"Vanoil Provides Update on License Renewals in Kenya","author":"Samuel Kamau Mbote","date":"February 4, 2014","format":false,"excerpt":"\"Vanoil Energy \u00a0a Vancouver-based Canadian international oil and gas development company has confirmed ongoing discussions with the Kenyan Government with regard to its license renewals in Kenya.These talks are now at a key stage and the Company expects them to conclude imminently. At such time, Vanoil will provide an immediate\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":"","width":0,"height":0},"classes":[]},{"id":1862,"url":"https:\/\/www.oilnewskenya.com\/index.php\/vanoil-seeks-150-million-in-suit-against-the-government-of-kenya\/","url_meta":{"origin":1400,"position":1},"title":"Vanoil seeks $150 million in suit against the Government of Kenya","author":"Samuel Kamau Mbote","date":"October 3, 2014","format":false,"excerpt":"Vanoil Energy Ltd. has commenced an international arbitration against the Government of Kenya after the minister for Energy Davis\u00a0Chirchir declined to renew the company\u2019s exploration licenses citing speculation. In the\u00a0suit Vanoil seeks to resolve a dispute arising from the government\u2019s (Respondent) breach of the Production Sharing Contracts for Blocks 3A\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\/07\/vanoil-block-3a.png?fit=400%2C400&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1998,"url":"https:\/\/www.oilnewskenya.com\/index.php\/vanoil-energy-reviews-company-operations-to-focus-on-kenyan-case\/","url_meta":{"origin":1400,"position":2},"title":"Vanoil Energy reviews company operations to focus on Kenyan case","author":"Samuel Kamau Mbote","date":"November 4, 2014","format":false,"excerpt":"Last week Vanoil Energy announced that the board of directors has instructed management to conduct an immediate review of all Company operations as it shifts its priority aggressively pursue its legal arbitration claims against the Republic of Kenya. As a result the goal is to eliminate non-essential costs, dispose of\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\/07\/vanoil-block-3a.png?fit=400%2C400&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":395,"url":"https:\/\/www.oilnewskenya.com\/index.php\/vanoil-announces-settlement-accord-with-the-government-of-rwanda\/","url_meta":{"origin":1400,"position":3},"title":"Vanoil Announces Settlement Accord with the Government Of Rwanda","author":"Samuel Kamau Mbote","date":"January 25, 2014","format":false,"excerpt":"Vanoil Energy Ltd. a Vancouver-based Canadian international oil and gas development company has announced that the Government of Rwanda and Vanoil have agreed to end their discussions regarding the exploration of Lake Kivu in Rwanda following expiry of the Technical Evaluation Agreement (\"TEA\") between them in June 2013. As part\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":"","width":0,"height":0},"classes":[]},{"id":1278,"url":"https:\/\/www.oilnewskenya.com\/index.php\/kenyas-parliament-backs-vanoil-energy-license-cancellation\/","url_meta":{"origin":1400,"position":4},"title":"Kenya\u2019s parliament backs Vanoil Energy license cancellation","author":"Samuel Kamau Mbote","date":"June 20, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] The energy and transportation committee has backed the decision to terminate the oil exploration license of Vanoil Energy in January this year. In a report tabled in parliament the committee says the Canadian company was unable to explore any oil in the country after it ran into losses.\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":"","width":0,"height":0},"classes":[]},{"id":536,"url":"https:\/\/www.oilnewskenya.com\/index.php\/international-companies-operating-in-kenya-and-the-blocks-awarded\/","url_meta":{"origin":1400,"position":5},"title":"International companies operating in Kenya and the oil blocks awarded","author":"Samuel Kamau Mbote","date":"February 18, 2014","format":false,"excerpt":"Source:Ministry of Energy and Petroleum Operator\/Contractor Block No. Basin Name Afren\/Lion 1 Mandera Afren\/EAX L17\/L18 Lamu Offshore Simba Petroleum 2A Mandera Lion Petroleum 2B Mandera Vanoil Resources 3A\/3B Anza Africa Oil 9 Anza Tullow Oil\/Africa Oil 10A Anza Tullow Oil\/Africa Oil 10BA\/10BB\/12A\/13T Tertiary Rift Tullow Oil\/Swala Energy 12B Tertiary Rift\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\/02\/blocks.jpg?fit=468%2C628&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=1400"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1400\/revisions"}],"predecessor-version":[{"id":3665,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1400\/revisions\/3665"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/1401"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=1400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=1400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=1400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}