Kenya to audit oil and gas companies

uhuru kenyatta-852

Kenya President Uhuru Kenyatta

11 November 2013, Nairobi – The Kenyan government wants to carry out financial audits on the operations of selected oil and gas companies in Kenya.

The ministry of energy and petroleum last week invited expression of interest for provision of audit services on oil and gas exploration companies.

“Following the recent oil discoveries in Kenya and increased level of exploration activity, there is a growing need to monitor the operations of international oil companies operating in Kenya,” says part of the notice published in a section of print media. “The costs incurred under the exploration stage will in future be submitted to the government for cost recovery.”

According to the tender document posted on the ministry’s website, the objectives of undertaking the financial audits would be to examine and verify all charges and credits relating to the petroleum operations such as books of account, accounting entries, material records and inventories.

Also to be checked are vouchers, payrolls, invoices and any other documents, correspondence and records necessary to audit and verify the charges and credits.

“The auditors shall have the right in connection with such audit, to visit and inspect at reasonable times, all sites, plants, facilities, warehouses and offices of the contractor directly or indirectly serving the petroleum operations including visiting personnel associated with those operations,” the document adds.

The successful firm will work closely with the state run National Oil Corporation and the ministry in conducting the exercise and make specific recommendations on the findings.

As at 2006, Kenya had 21 petroleum exploration blocks which were reviewed to 37 followed by a review of the same to 46 blocks in 2012. Of the 46 blocks, 44 are licensed to 24 international oil companies while one block has been licensed to Nock.

The Kenyan government has raised interest in the oil and gas sectors after various companies started exploring oil in Kenya. The highlight of this interest was the oil discovery by Tullow Oil in March 2012. The company has recorded additional success in the subsequent wells drilled within the Lokichar basin.

Offshore exploration activity also culminated with a gas discovery by Apache in September 2012. Some of the companies that are licensed and who may be subject to the audit included Tullow Oil, Camac Energy, Africa Oil, Eni, Apache, Adamantine and Imara Energy.

– The Star

About the Author