{"id":7618,"date":"2019-03-15T13:00:42","date_gmt":"2019-03-15T13:00:42","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=7618"},"modified":"2019-03-15T13:01:24","modified_gmt":"2019-03-15T13:01:24","slug":"pate-2-well-panic-kicks-in-over-unpaid-millions-to-kenyan-contractors","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/pate-2-well-panic-kicks-in-over-unpaid-millions-to-kenyan-contractors\/","title":{"rendered":"PATE 2 WELL: PANIC KICKS IN OVER UNPAID MILLIONS TO KENYAN CONTRACTORS"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Days after Lamu\u2019s block L4 operator Zarara Oil and Gas a subsidiary of Midway Resources <a href=\"https:\/\/bit.ly\/2u3hVvg\">announced<\/a> 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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">OilNews Kenya has learnt that the\ncontractors under their umbrella body Oil and Gas Contractors\nAssociation&nbsp;of&nbsp;Kenya met in a Nairobi hotel on Wednesday morning to\ndeliberate on various measures they should take to hasten payments. Further we\ncan report that the contractors might be headed to court to prevent any\nequipment on site from leaving Pate Island until their invoices are paid.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to sources who did not\nwant to be named Zarara Oil and Gas owes Kenyan contractors millions of dollars\nwith many of the suppliers yet to be paid since drilling works commenced in\n2017.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The fears were heightened by the\nannouncement that the operator plans to plug and abandon the well leaving less\nhope that a planned Pate 3 well, located 5 kilometers away and which was to be\ndrilled from the same well pad, is still in consideration.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When sought for comment the contractors\u2019 association says it fears that a growing precedence where international companies leave the country without paying local contractors may recur. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMidway resources International\nowe local contractors millions of dollars in unpaid invoices for goods and\nservices rendered to their Pate Island Operations.&nbsp;This has caused undue\nfrustration to the local contractors in addition to increasing the cost of\ndoing business. Members of the oil and gas contractors\u2019 association fear that\nonce the well is plugged and abandoned, they will not get paid their outstanding\namounts, causing further problems to the nascent oil and gas sector in the\ncountry which relies on exploration and drilling companies to honour their\npayment obligations,\u201d Kenya Oil and Gas Contractors Association said in an\nEmail response.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When reached for comment Zarara\nOil and Gas adds that it will continue to hold discussions with the contractors\nto update them on the progress in clearing these debts and has urged the\ncontractors to give the company time to honor the payments adding that their\nconcerns were \u2018being addressed.\u2019 <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the same time another Kenyan\ncompany Gas &amp; Oil Exploration Consultants Limited (GASOILEX) which had\nearlier <a href=\"https:\/\/bit.ly\/2CjsHBX\">threatened<\/a> to stop drilling works\nover unpaid commission fees by the drilling company Sakson Drilling &amp; Oil\nServices has also threatened to seek justice in the courts<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">GASOILEX says Sakson Drilling\n&amp; Oil Services owes it over $176,500 in commission of total costs from the\nproject and mobilization fees after helping it to win the drilling bid.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Zarara is also embroiled in a <a href=\"https:\/\/bit.ly\/2CmcwDW\">legal tussle<\/a> with Chinese geophysical\nservices company BGP over the non-payment of Kshs. 90 million after the\ncontractor offered seismic services in Lamu county in which the company\nacquired 374km of seismic lines in 2012.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To date a number of international\noperators and contractors have disappeared with millions owed to Kenyan\ncontractors including: Africa Geophysical Services and Atlas Development and\nSupport Services.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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<\/p>\n","protected":false},"author":24,"featured_media":7619,"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":[7114],"class_list":["post-7618","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-atlas-development-and-support-services","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/03\/OGCA.png?fit=590%2C226&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1YS","jetpack-related-posts":[{"id":7078,"url":"https:\/\/www.oilnewskenya.com\/index.php\/pate-2-3-wells-face-delays-sakson-kenyan-agent-head-court\/","url_meta":{"origin":7618,"position":0},"title":"Exclusive: Pate 2 &#038; 3 Wells Could Face Further Delays As Sakson &#038; Kenyan Agent Head to Court","author":"","date":"June 19, 2018","format":false,"excerpt":"The continuation of Pate 2 and 3 wells in Lamu\u2019s block L4 is in doubt after the rig owner Sakson Drilling & Oil Services and its Kenyan agent Gas & Oil Exploration Consultants Limited (GASOILEX) fell out over unpaid commissions as part of the mobilization fee and as an agent\u2026","rel":"","context":"In &quot;Top News&quot;","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":[]},{"id":6979,"url":"https:\/\/www.oilnewskenya.com\/index.php\/zarara-spuds-initial-well-blocks-l4-l13-kenya-pate-drilling-campaign\/","url_meta":{"origin":7618,"position":1},"title":"Zarara Spuds Initial Well in Blocks L4 &#038; 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 &quot;Top News&quot;","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":[]},{"id":3250,"url":"https:\/\/www.oilnewskenya.com\/index.php\/zarara-oil-gas-drill-well-block-l4-q2-2016\/","url_meta":{"origin":7618,"position":2},"title":"Zarara Oil and Gas to drill well in Kenya&#8217;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 &quot;Top News&quot;","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":6095,"url":"https:\/\/www.oilnewskenya.com\/index.php\/zarara-oil-gas-gets-18-month-license-extension-kenyas-block-l4-l13\/","url_meta":{"origin":7618,"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 &quot;Top News&quot;","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":7091,"url":"https:\/\/www.oilnewskenya.com\/index.php\/pate-2-continued-drilling-set-continue-august-sakson-rig-arrives-mombasa\/","url_meta":{"origin":7618,"position":4},"title":"Pate 2 Well Drilling Set to Continue in August as Sakson Rig Arrives in Mombasa","author":"","date":"June 26, 2018","format":false,"excerpt":"Drilling of Pate 2 well in Lamu's Block L4 could continue this late July or early August after the much awaited ship carrying the 2600hp Sakson SK604 rig arrived in Mombasa last week. The rig will then head off to Mtandawanda port in Lamu East aboard a barge hired from\u2026","rel":"","context":"In &quot;Top News&quot;","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\/06\/SK-604.png?fit=294%2C401&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":10868,"url":"https:\/\/www.oilnewskenya.com\/index.php\/kenya-petroleum-ministry-cancels-6-psas-over-default-of-obligations\/","url_meta":{"origin":7618,"position":5},"title":"KENYA: Petroleum Ministry Cancels 6 PSAs Over Default of Obligations","author":"","date":"September 15, 2021","format":false,"excerpt":"The Cabinet Secretary for Petroleum and Mining John Munyes has issued demand notices and notices of termination to six production sharing contracts in a Kenya Gazette notice dated 10th September 2021. According to the notice the Cabinet Secretary on the 27th August 2021 issued demand notices and notices of termination\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/09\/Kenya-oil-gas-map.png?fit=611%2C645&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/09\/Kenya-oil-gas-map.png?fit=611%2C645&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/09\/Kenya-oil-gas-map.png?fit=611%2C645&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7618","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=7618"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7618\/revisions"}],"predecessor-version":[{"id":7620,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7618\/revisions\/7620"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/7619"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=7618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=7618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=7618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}