Kenyan Cabinet Secretary for petroleum and Mining, John Munyes, has issued notices to terminate contracts issued to six oil and gas exploration companies within the country’s Lamu Basin.

According to media reports, these notices were issued on the 27th of August, 2021, citing failure of the companies to meet their obligations as outlined in their respective petroleum agreements.

The companies are Zarara Oil and Gas, Octant Energy, A-Z Petroleum Products, Simba Africa Rift Energy, Lamu Oil and Gas and Milio/Castac Oil.

It is unclear why the Cabinet Secretary took the decision, however, per section 25 of the Petroleum Act, one of the reasons the Cabinet Secretary may terminate petroleum agreements at the exploration stage would be failure by the exploring company to meet its minimum work and expenditure obligations.

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