Kenya Says Pick up the Exploration Pace

The Kenyan government is getting a bit impatient with the pace of exploration in the country. Martin Heya, Kenya’s petroleum commissioner, said that the government wants firms to pick up the pace of their work to meet the terms of their contracts.

Heya said that if they fail to do so Kenya may invoke its right to cash in their guarantees. Some companies are behind schedule due to exploration funding issues.

“We just want them (explorers) to do their work. If they don’t do the work we cash the bank guarantee,” Heya told Reuters. Bank guarantees are usually agreed when companies sign exploration contracts, specifying an amount of money payable to the government should they fail to meet their obligations. The government can also revoke licenses.

However, not all explorers in Kenya have had funding setbacks and a number of wells have been drilled in recent months. Tullow Oil is on its third onshore well and an Apache-led group drilled a well offshore Kenya recently.

“Now the interest that is there (in Kenya's resources) is so overwhelming. If you just sit on the block and do nothing we will take action,” Heya said.