Kenya: Block L6 funding dispute


Issue 317 - 11 Feb 2016 | 1 minute read

Australia’s Pancontinental Oil & Gas is disputing cash calls made by FAR subsidiary Flow Energy for Block L6. FAR issued a notice of default to Pancontinental in September 2015. Pancontinental said that, since about mid-2014, work had only been planned for the onshore portion of the block, where it said it had a 16% paying interest, based on Dubai-based Milio International, which farmed in in 2014, having a 60% paying interest. It said civil upheaval and security incidents had prevented petroleum operations from taking place, but Flow had issued cash calls for $377,801 in 2015, mainly for staff and consultants, and had assessed Pancontinental’s paying interest as 40%, not 16%.

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