Production share dispute linked to Rwanda oil deal collapse
A gas extraction barge on the shores of Lake Kivu in Karongi
District, Western Province. Photo/Cyril Ndegeya
By ALEX NGARAMBE Rwanda Today
Posted Saturday, February 1 2014 at 13:17
In Summary
Canadian oil and gas company, Vanoil, has invested in oil exploration
in the Lake Kivu region for the past seven years but the alleged
disagreement is said to have led to the amicable cancellation of the
deal between the two parties.
An oil exploration deal reportedly collapsed after a foreign company
demanded a 80 per cent share once oil was discovered in the Kivu belt,
which the government rejected.
The Canadian oil and gas company has invested in oil exploration in
the Lake Kivu region for the past seven years but the alleged
disagreement is said to have led to the amicable cancellation of the
deal between the two parties.
READ: Canadian firm, Kigali to sign new oil sharing deal
Rwanda Development Board (RDB) is the chief negotiator for the
exploration of oil in the region, which borders Democratic Republic of
Congo (DRC), and with the cancellation of the deal with Vanoil, plans
are under way to contract new companies to proceed with the
exploration works.
Details of the share the government had demanded were not clear as we
went to press, although the collapse of the deal was partly premised
on a dispute arising from the sharing of the spoils.
"We have settled our differences amicably and out of court in regard
to the oil exploration deal," said Cabinet Minister Valentine
Rugwabiza, the chief executive officer of RDB.
RDB tight-lipped
RDB was however tight-lipped about the details of production sharing
agreements with the Canadian company.
"We can't give details of what transpired between us and Vanoil,"
added Ms Rugwabiza.
Rwanda is hopeful of discovering the oil in the Kivu, given the
similarity in the region's geographic and geological features with the
albertine region of Uganda where huge deposits the resource have been
discovered.
According to the exploration law, even if a mining firm invests huge
sums of money in prospecting and no minerals are found, it is not
compensated for the effort.
Demand lion's share
This is being seen as the reason that could have motivated Vanoil to
demand the lion's share in the agreement since it had sunk huge chunks
of money in the exploration.
Last week, a Vancouver-based Canadian international oil and gas
development company announced that Vanoil and Rwanda had agreed to end
their discussions regarding the exploration of Lake Kivu in Rwanda
following expiry of the Technical Evaluation Agreement (TEA) between
them in June 2013.
As part of this agreement, the government and Vanoil amicably resolved
the issues referred to in the Conciliation Committee under the TEA, it
added.
http://www.theeastafrican.co.ke/Rwanda/Business/Production-share-dispute-linked-to-Rwanda-oil-deal-collapse/-/1433224/2168936/-/pr4gh3/-/index.html
--
SIBOMANA Jean Bosco
Google+: https://plus.google.com/110493390983174363421/posts
YouTube Channel: http://www.youtube.com/playlist?list=PL9B4024D0AE764F3D
http://www.youtube.com/user/sibomanaxyz999
***Online Time:15H30-20H30, heure de Montréal.***Fuseau horaire
domestique: heure normale de la côte Est des Etats-Unis et Canada
(GMT-05:00)***
| Reply via web post | Reply to sender | Reply to group | Start a New Topic | Messages in this topic (1) |
.To post a message: RwandaLibre@yahoogroups.com; .To join: RwandaLibre-subscribe@yahoogroups.com; .To unsubscribe from this group,send an email to:
RwandaLibre-unsubscribe@yahoogroups.com
_____________________________________________________
More news: http://amakurunamateka.blogspot.co.uk/; http://ikangurambaga.blogspot.co.uk/
--------------------------------------------------------------------------
No comments:
Post a Comment