AfrOil: Africa Oil Corp. completes exit from Kenya’s South Lokichar basin

Canadian oil and gas explorer Africa Oil Corp. (AOC) has completed its exit from Kenya after settling disputes over taxes and other matters that saw it pay KES2.17bn ($15.5mn) between April and June.

The firm, which announced it would be exiting Kenya after relinquishing its 25% stake in the upstream oil project, revealed in its half-year report that it had settled all outstanding financial disputes in the country.

AOC had earlier disclosed a payment of KES1.16bn ($7.7mn) as an out-of-court tax settlement with the Kenya Revenue Authority (KRA).

In May, AOC and TotalEnergies (France) withdrew from Blocks 10BB, 13T and 10BA in the South Lokichar basin, in which they each held a 25% stake, for “differing internal strategic reasons.” This development saw Tullow Oil (UK/Ireland) assume full control of the project.