Kenya May Penalize Slow Oil, Gas Explorers

Kenya was oil and gas license holders to expedite work. If they fail to do so, the government may invoke its right to cash in their guarantees, Reuters has reported citing a government official.

A squeeze in global capital markets has hurt independent firms' ability to raise money to drill exploratory wells, causing a handful of oil companies in Kenya to fall behind schedules they are contractually obliged to meet, the new agency said. The government's tough new stance could have major implications, pushing out smaller firms in favour of those with greater investment capacity, the agency report further added.

'We just want them (explorers) to do their work. If they don't do the work we cash the bank guarantee,' Martin Heya, Kenya's petroleum commissioner, told Reuters.