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In the notice, Munyes said the companies had drilling and other required works.
been informed of the government’s decision Under Kenyan law, the ministry can issue
on August 27. The firms in question have been written notice of cancellation if a licence holder
given one to three months from the date of the fails to make any payment to the government
issuance of demand notices to remedy their vio- or government officials as required under the
lations of the PSC terms or to show the Ministry contract over a period exceeding one month –
of Energy and Petroleum that they have made or if the company in question violates any term
their best effort to rectify the default. They may of its PSC. Breach of contract can occur if the
use this time to secure an extension of the dead- licence holder becomes insolvent or goes into
line for compliance or withdrawal of the notice. liquidation.
Kenyan PSCs typically specify the payments “When the cabinet secretary terminates the
that licence holders must make to the Ministry contract, the contractor shall conclude petro-
of Energy and Petroleum, including ground leum operations in the area in an orderly man-
rent, each year. ner, minimising harm to the government and
They also outline the timelines for undertak- third parties,” explained Robert Shisoka, the
ing seismic surveys and other exploration work head of Kenya’s Hydrocarbons Management
at potential oil and gas deposits, along with Consultants.
PERFORMANCE
Libya’s NOC reports on September revenue
LIBYA REVENUES of Libya’s National Oil Corp. Libya, an OPEC member, has managed to
(NOC) from crude oil, natural gas, condensate keep its production above 1mn barrels per day
and petrochemical sales hit $1.79bn in Septem- (bpd) since November 2020 and saw produc-
ber 2021, as a consequence of rising output and tion hit 1.3mn bpd in April 2021. This marks
favourable oil prices. a reversal of the declines reported in the first
The vast majority of the company’s total reve- half of 2020, when armed clashes between fac-
nues, or $1.66bn, stemmed from crude oil sales. tions brought Libyan output down to less than
A further $92mn was generated from sales of 100,000 bpd.
natural gas and condensate. Hopes of a recovery and production have
Meanwhile, NOC’s revenues from petroleum risen following the formation of a national unity
product sales stood at $53mn in September, government in mid-March, an event that ended
while petrochemical sales generated another a split between the duelling eastern and west-
$9.22mn. ern administrations. NOC now hopes to raise
NOC remained committed to supplying production to 1.45mn bpd by the end of 2021,
Libya’s electricity generation sector with fuel in to 1.6mn bpd within two years and 2.1mn bpd
September. It delivered $23mn worth of crude within four years. It also plans to bring new oil-
oil to the Ubari thermal power plant (TPP) and fields in the Sirte basin in the central part of the
$3.26mn worth of oil to fulfil the fuel require- country and the Ghadames basin in the west on
ments of the Mellitah electricity company. stream in the coming months.
Libyan oil production has remained above 1mn bpd since last November (Photo: TotalEnergies)
Week 43 27•October•2021 www. NEWSBASE .com P7
