{"id":1862,"date":"2014-10-03T08:37:11","date_gmt":"2014-10-03T07:37:11","guid":{"rendered":"http:\/\/oilnewskenya.com\/?p=1862"},"modified":"2015-09-07T13:38:48","modified_gmt":"2015-09-07T13:38:48","slug":"vanoil-seeks-150-million-in-suit-against-the-government-of-kenya","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/vanoil-seeks-150-million-in-suit-against-the-government-of-kenya\/","title":{"rendered":"Vanoil seeks $150 million in suit against the Government of Kenya"},"content":{"rendered":"

Vanoil Energy Ltd. has commenced an international arbitration<\/a> against the Government of Kenya after the minister for Energy Davis\u00a0Chirchir declined to renew the company\u2019s exploration licenses citing speculation.<\/p>\n

In the\u00a0suit Vanoil seeks to resolve a dispute arising from the government\u2019s (Respondent) breach of the Production Sharing Contracts for Blocks 3A and 3B.Vanoil says it commenced drilling operations at the Madogashe-I drill site (Block 3A) in Kenya prior to July 31, 2013, as part of the Company’s commitment specified in the amended PSCs for Blocks 3A and 3B but was unable to drill,<\/p>\n

The company says this was because of because drill site operations were significantly impaired by a number of incidents of local disturbance and unrest with local government authorities directing it to reduce and then delay operations until a safe return to the site could be provided.<\/p>\n

The Company’s decision to proceed with a formal arbitration demand follows prolonged discussions with Kenyan officials regarding an extension of the PSCs for Blocks 3A and 3B in order to accommodate the lengthy delays experienced at the drill site and give the Government of Kenya sufficient time to provide Vanoil with secure and safe access to its site, in order to complete its two-well program.<\/p>\n

According to a statement signed by Chairman James Passin Vanoil is seeking not less than US$150 million as full and proper restitution for its seven years of exploration and development, based upon the net present value of its investment in Kenya, to which it is entitled under the PSCs.<\/p>\n

Kenya\u2019s parliament<\/a> has also backed the decision to terminate the oil exploration license of Vanoil Energy after a report tabled in parliament by the energy and transportation committee says the Canadian company was unable to explore any oil in the country after it ran into losses.<\/p>\n

The committee through its vice chairman John Munuve also said that the company\u2019s inability to explore for oil showed that the company was only in the country to speculate thus being in breach of contract.<\/p>\n

Vanoil\u2019s blocks cover 24,912 km2 in Kenya\u2019s 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.<\/p>\n

In July Vanoil announced it will now seek arbitration in order to recover its significant investment and lost profit opportunity in Blocks 3A and 3B.<\/p>\n","protected":false},"excerpt":{"rendered":"

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 … 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":[280,281,569,743,1154,1197,1549,1584,1657,1954,1975,2085,2227],"class_list":["post-1862","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-politics","category-top-news","tag-block-3a","tag-block-3b","tag-davis-chirchir","tag-energy-and-transportation-committee","tag-international-arbitration","tag-james-passin","tag-melmut-basin","tag-ministry-of-energy","tag-muglad-basin","tag-paipai","tag-parliament","tag-production-sharing-contract","tag-sala-1","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-u2","jetpack-related-posts":[{"id":1278,"url":"https:\/\/www.oilnewskenya.com\/index.php\/kenyas-parliament-backs-vanoil-energy-license-cancellation\/","url_meta":{"origin":1862,"position":0},"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":1400,"url":"https:\/\/www.oilnewskenya.com\/index.php\/vanoil-energy-to-proceed-with-arbitration-after-loss-of-kenyan-blocks-3a-and-3b\/","url_meta":{"origin":1862,"position":1},"title":"Vanoil Energy to proceed with arbitration after loss of Kenyan blocks 3A and 3B","author":"Samuel Kamau Mbote","date":"July 7, 2014","format":false,"excerpt":"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, onshore Kenya. Vanoil has decided to proceed with a formal demand for arbitration in accordance with the UNCITRAL arbitration rules\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":1862,"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":432,"url":"https:\/\/www.oilnewskenya.com\/index.php\/vanoil-provides-update-on-license-renewals-in-kenya\/","url_meta":{"origin":1862,"position":3},"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. 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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":372,"url":"https:\/\/www.oilnewskenya.com\/index.php\/learn-more-about-kenyas-block-3a\/","url_meta":{"origin":1862,"position":5},"title":"Learn more about Kenya’s Block 3A Oil Exploration","author":"Samuel Kamau Mbote","date":"January 16, 2014","format":false,"excerpt":"Resource Type: Oil, Natural Gas Property Size: 12,192sq km Stage of Development: Exploration Current Work Program: EIA, data interpretation & preparation of the 2010 seismic program Potential: Unknown Ownership: Production Sharing Contract(PSC) signed in October, 2007 Overview In October 2007, Vanoil signed a Production Sharing Contract for Block 3A [12,192\u2026","rel":"","context":"In "Home"","block_context":{"text":"Home","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/home\/"},"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":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1862","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=1862"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1862\/revisions"}],"predecessor-version":[{"id":3584,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1862\/revisions\/3584"}],"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=1862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=1862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=1862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}