{"id":6695,"date":"2018-01-17T12:07:47","date_gmt":"2018-01-17T12:07:47","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=6695"},"modified":"2018-01-17T12:15:13","modified_gmt":"2018-01-17T12:15:13","slug":"zarara-oil-gas-bgp-locked-court-battle-2dseismic-payment","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/zarara-oil-gas-bgp-locked-court-battle-2dseismic-payment\/","title":{"rendered":"Zarara Oil and Gas, BGP locked in court battle over 2D Seismic Payment"},"content":{"rendered":"

Chinese geophysical services company BGP has taken Zarara Oil and Gas the operator in blocks L4 and L13 to court over the non-payment of Kshs. 90 million after the contractor offered seismic services in Lamu county.<\/p>\n

The exercise that involved 374km of seismic lines acquired by Zarara in 2012 according to BGP was completed successfully only for the operator to fail to honor the entire debt with $873,561 left in arrears.<\/p>\n

BGP which has lodged a suit at the high court in Nairobi through its general manager Zhao Enhui says Zarara has over the last over four years not settled the debt and instead offered the company empty promises on when to clear the remaining sum despite having acknowledged the debt.<\/p>\n

\u201cThe defendant has for a period of over four years neglected and or declined to fully settle its debt herein but has instead elected to shift goal posts and give the plaintiff empty promises on payment of the same despite having fully acknowledged the debt and confirmed the outstanding amount,\u201d Enhui is quoted by the business daily.<\/p>\n

Zarara has on its part has on its part\u00a0 blamed BGP\u00a0 for doing sub-standard work during the exercise which led to jeopardy of its interests in blocks L4 and L13 and maintains that resulted to the disputed payments.<\/p>\n

The map below shows the block boundaries for Blocks L4 and L13, marked in dark red and the location of the gas discoveries of Dodori-1 in Block L13 and Pate-1 in Block L4. Also shown, in red, are the 374km of seismic lines acquired by Zarara in 2012 and in grey some earlier data acquired in the 1970\u2019s.<\/em><\/p>\n

\"\"<\/a><\/p>\n

BGP wants Zarara restrained from disposing its interest on the two blocks as it does not have any other physical assets in Kenya and it would prove ways to recover its debt should Zarara exit from the two licenses.<\/p>\n

Zarara on its part has termed the allegations as unsubstantiated that it was considering selling these two acreages and wants the case referred to arbitration as their contract calls to disputes by the two parties be settled by arbitration in accordance with the Rules of the London Court of International Arbitration.<\/p>\n

Zarara is currently planning to drill the Pate 2 well<\/a> in Pate island to appraise the former Pate 1 discovery.<\/p>\n

MRI, through its wholly owned subsidiary Zarara Oil and Gas Limited (\u2018Zarara\u2019), holds a 75% working interest and is the Operator of Blocks L4 and L13, predominantly located onshore Kenya. The residual working interests, both free-carried until final approval of planned commercial production, are held by CH-Swiss Oil Holdings International at 15% and the National Oil Company of Kenya at 10%. MRI has negotiated a legally binding heads of agreement for the eventual acquisition of the 15% interest of CH-Swiss Oil Holdings.<\/p>\n","protected":false},"excerpt":{"rendered":"

Chinese geophysical services company BGP has taken Zarara Oil and Gas the operator in blocks L4 and L13 to court over the non-payment of Kshs. 90 million after the contractor … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":3844,"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":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[241,3508,3507,6669,3512,3509,3510,2272,2765],"class_list":["post-6695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-bgp","tag-block-l13","tag-block-l4","tag-high-court-nairobi","tag-pate-island","tag-pate-1","tag-pate-2","tag-seismic","tag-zarara-oil-and-gas","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/09\/bgp-seismic.jpg?fit=460%2C290&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1JZ","jetpack-related-posts":[{"id":3250,"url":"https:\/\/www.oilnewskenya.com\/index.php\/zarara-oil-gas-drill-well-block-l4-q2-2016\/","url_meta":{"origin":6695,"position":0},"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":4228,"url":"https:\/\/www.oilnewskenya.com\/index.php\/zarara-oil-and-gas-receives-18-month-extension-in-kenyas-blocks-l4-l13\/","url_meta":{"origin":6695,"position":1},"title":"Zarara Oil and Gas Receives 18 month Extension in Kenya\u2019s Blocks L4 & L13","author":"","date":"January 7, 2016","format":false,"excerpt":"Kenya\u2019s Block L4 & L13 operator Zarara Oil and Gas has said it has been granted an 18 month licence extension\u00a0through\u00a0to June 2017,\u00a0to the First Additional Exploration Period on both of the production sharing contracts. Zarara Oil and Gas which is a wholly owned subsidiary of Midway Resources International (MRI)\u00a0says\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":7618,"url":"https:\/\/www.oilnewskenya.com\/index.php\/pate-2-well-panic-kicks-in-over-unpaid-millions-to-kenyan-contractors\/","url_meta":{"origin":6695,"position":2},"title":"PATE 2 WELL: PANIC KICKS IN OVER UNPAID MILLIONS TO KENYAN CONTRACTORS","author":"","date":"March 15, 2019","format":false,"excerpt":"Days after Lamu\u2019s block L4 operator Zarara Oil and Gas a subsidiary of Midway Resources announced that their drilling phase had been completed, Kenyan contractor who provided various services and equipment are in panic as they fear the license holder could take off without paying","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\/2019\/03\/OGCA.png?fit=590%2C226&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/03\/OGCA.png?fit=590%2C226&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/03\/OGCA.png?fit=590%2C226&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":6095,"url":"https:\/\/www.oilnewskenya.com\/index.php\/zarara-oil-gas-gets-18-month-license-extension-kenyas-block-l4-l13\/","url_meta":{"origin":6695,"position":3},"title":"Zarara Oil and Gas Gets 18 month License extension in Kenya\u2019s block L4 and L13","author":"","date":"June 27, 2017","format":false,"excerpt":"Zarara Oil and Gas the operator in block L4 and L13 located in Lamu County has received an eighteen month license extension to January 2019 after the lapse of an earlier 18 month licence extension\u00a0through\u00a0to June 2017\u00a0to the First Additional Exploration Period on both of the production sharing contracts expired\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\/2016\/10\/Pate-1-location.png?fit=639%2C632&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/10\/Pate-1-location.png?fit=639%2C632&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/10\/Pate-1-location.png?fit=639%2C632&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":4827,"url":"https:\/\/www.oilnewskenya.com\/index.php\/zarara-oil-and-gas-to-spud-in-block-l4-by-june-2017\/","url_meta":{"origin":6695,"position":4},"title":"Zarara Oil and Gas to spud in Block L4 by June 2017","author":"","date":"July 13, 2016","format":false,"excerpt":"Zarara Oil and Gas which is a wholly owned subsidiary of Midway Resources International (MRI)\u00a0will be spudding in Block L4 by end of the first half n 2017 having postponed their earlier schedule of Q2 2016 OilNews Kenya has learnt. According to our source the company which also doubles as\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\/03\/offshore-blocks-kenya.jpg?fit=1039%2C601&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/03\/offshore-blocks-kenya.jpg?fit=1039%2C601&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/03\/offshore-blocks-kenya.jpg?fit=1039%2C601&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/03\/offshore-blocks-kenya.jpg?fit=1039%2C601&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":6979,"url":"https:\/\/www.oilnewskenya.com\/index.php\/zarara-spuds-initial-well-blocks-l4-l13-kenya-pate-drilling-campaign\/","url_meta":{"origin":6695,"position":5},"title":"Zarara Spuds Initial Well in Blocks L4 & L13 Kenya For Pate Drilling Campaign","author":"","date":"April 26, 2018","format":false,"excerpt":"Zarara Oil & Gas Limited (\u201cZarara\u201d), a wholly owned subsidiary of Midway Resources International, announces the spudding today of Pate-2 well, that commences its Pate Drilling Campaign on its production sharing contracts (\u201cPSCs\u201d) on blocks L4 andL13 in Kenya. The blocks are located in the coastal region near Port Lamu,\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\/2018\/04\/IMG-20180426-WA0030.jpg?fit=774%2C1032&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/04\/IMG-20180426-WA0030.jpg?fit=774%2C1032&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/04\/IMG-20180426-WA0030.jpg?fit=774%2C1032&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/04\/IMG-20180426-WA0030.jpg?fit=774%2C1032&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/6695","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\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=6695"}],"version-history":[{"count":3,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/6695\/revisions"}],"predecessor-version":[{"id":6699,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/6695\/revisions\/6699"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/3844"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=6695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=6695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=6695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}