Canadian energy company Vanoil has launched legal action against the Kenyan government after a dispute over one of its operations.
The costly lawsuit follows a breach of production sharing contracts (PSCs) in the east Africa-focused firm’s operations in Madogashe.
Although drilling began on blocks 3A and 3B in July last year, it was “paused” by local authorities after “a number of incidents of local disturbance and unrest”.
Vanoil has said it has already asked the Kenyan government to extend the PSCs for both blocks to compensate for the delays and allow for enough time to provide safe access to the site.
The company said: “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.”