Vanoil Energy Ltd. (TSX-V:VEL) has filed a lawsuit against the government of Kenya worth at least US$150 million, the company announced October 1.
The suit relates to Vanoil’s drilling operations at its Madogashe site in the African country. The company said it is looking to resolve a breach of production sharing contracts (PSCs).
Drilling at the site began in July 2013, but was halted by “a number of incidents of local disturbance and unrest.” Vanoil said it has had extensive discussions with the Kenyan government, asking for an extension of the PSCs to reflect these delays, and to allow the company sufficient time to access its site in a safe manner.
“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,” the company said in a release.
In addition to its Kenyan operations, Vanoil holds a 25% interest in a project in the Seychelles.
@EmmaHampelBIV
