(Ecofin Agency) - In Kenya, the Commissioner for Petroleum, Martin Heya, has announced that Block 11B operator Adamantine Energy and its joint venture partner Bowleven will not be granted a licence extension.

The commissioner did not disclose the reason but said the block is now unoccupied after the partners’ extension expired in June 2016 and will be put up for auction after the country advertises all vacant blocks.

The JV partnership on the block had earlier been granted a one-year licence extension to allow for evaluation ahead of second phase decision as the conclusion of acquisition processing and interpretation of 2D seismic on block 11B are among the main objectives. The companies however, were unsuccessful in using the opportunity instead they squandered it engaging in legal battles at the English High Court.

Block 11B encompasses an area of about 14,200 km² covering the Loeli, Lotikipi, Gatome and South Gatome basins. The basins are situated north of the Lokichar Basin where a significant oil discovery was made with the Ngamia-1 well.

Under the farm-in agreement signed in September 2012, Bowleven was expected to finance the work programme for the first two-year exploration period at a cost of $10 million which includes an airborne geophysical survey and the acquisition of 2D seismic. The company was to also provide technical support to Adamantine as operator, during the initial exploration period, Oil News Kenya reports.

Anita Fatunji