Kenya: Vanoil goes to arbitration

Canada’s Vanoil Energy said on 1 October it had launched international arbitration against the Kenyan government over its blocks 3A and 3B. Earlier this year, the government said it intended to allow Vanoil’s licence for the blocks on the Somali border to expire following the company’s failure to fulfil its drilling commitments. “Vanoil is seeking not less than $150m as full and proper restitution for its seven years of exploration and development,” the company said. Vanoil said in July that oil shows in the Sala-1 well in the Anza Graben announced by Africa Oil Corporation had potentially increased the value of its blocks.