Kenya Extends Oil Exploration License of Africa Oil Corp. Till 31 Dec 2021

Kenya Extends Oil Exploration License of Africa Oil Corp. Till 31 Dec 2021

Africa Oil Corporation has been granted an extension for its oil exploration license on Blocks 10BB and 13T in the South Lokichar basin scheme by the Kenyan Government.

In a statement, the company says under the terms of the extension, the Joint Venture partners have the right to extend the second exploration period for the 10BB and 13T licence blocks until 31 December 2020, with a further extension until 31 Dec 2021 contingent on an agreed work programme and budgets.

“We strongly believe in the value of the Kenya development project and will be spending the next year on optimizing the project and removing all remaining obstacles to allow it to move forward,” said Africa Oil CEO Keith Hill.

“We see this project as a strong complement to our Nigeria production assets and our exploration portfolio successes.”

In August, Tullow and its partners withdrew their Force Majeure, paving way for the resumption of oil exploration for blocks 10BB and 13  in the South Lokichar basin scheme in Kenya.

They also said they were still engaging with the government on the way forward on the 14 percent Value Added Tax (VAT) on goods imported or purchased locally by the firm.