ERHC Energy Inc (ERHE)

[midtieroil]

Here is a link to the model PSC for Kenya. While most of the important details are fill-in-the-blank, it does at least give some idea of what to expect. It also gives us far more information than our own company is willing to provide. By the way, STP had a similar model PSC so it is not like these countries are starting from scratch when they negotiate PSCs.

http://www.nockenya.co.ke/pdf/sharing_contract.pdf

And a link to an article that just makes you go Hmmmmm.

http://www.mwakilishi.com/content/articles/2012/03/28/uk-firm-uses-forged-letters-to-raise-funds-for-kenyas-oil.html

And a little more info on the possible terms of the PSC. I don't know how much of this actually applies to our PSC.

The Petroleum (Exploration and Production Act)

Provides the legal framework and regulates the negotiations and conclusion of Production Sharing Contracts with potential investors.
Empowers the Minister for Energy to sign the Petroleum Sharing Contracts.
Has no signature bonus.
Government pays taxes on behalf of the investor thus imposing very light fiscal burden.
Terms of the Contract
a. Initial exploration period with two additional exploration periods to be negotiated with the Government.b. The exploration period shall be extended, in case of a discovery, for the field evaluation programme.c. Duration of development and production in case of a commercial discovery is negotiable.d. Acreage surrender is negotiable.i. An agreed percentage of the original contract area at the end of the initial exploration.ii. An agreed percentage of the original contract area at the end of the additional exploration periods. e. Surface and other fees are negotiable.
i. An agreed amount per hectare is paid annually during the initial exploration period.ii. An agreed amount per hectare is paid annually during the first & second additional exploration period.iii. An agreed amount per hectare is paid annually as training fee.f. Natural gas – the Government will consider special provisions on natural gas submitted by the Contractor in its offer.