Business Daily<\/a> (Nairobi)<\/p>\nWashington Gikunju<\/p>\n
23 December 2011<\/p>\n
The Energy ministry has launched investigations into a suspected cartel of fraudsters who are using forged government documents to dupe international financiers that they have allocations of oil exploration blocks in Kenya.<\/p>\n
Patrick Nyoike, the permanent secretary in the ministry, Thursday said the criminal investigations department (CID) would be called in to investigate the origin of letters allegedly signed by Cabinet minister Kiraitu Murungi.<\/p>\n
The two letters seen by the Business Daily are addressed to Blue Star Trading Company — a firm allegedly registered in the UK — and appear to show Mr Murungi promising allocation of five oil exploration blocks off the Kenya coast.<\/p>\n
The letters also promise a 50\/50 profit share agreement with the company, net of all the costs incurred by the exploration firm in making the oil wells operational. They are dated November 7 and 14.<\/p>\n
In an interview, Mr Nyoike strongly denied that the documents, which appear to be on official ministry letterheads, were genuine government offer letters.<\/p>\n
He showed the Business Daily Mr Murungi’s official signature, which appeared to differ from the ones on the two letters.”These letters are forgeries; we will forward them to the CID for investigations,” said Mr Nyoike.<\/p>\n
Left: Minister Kiraitu Murungi’s signature which Energy PS Patrick Nyoike said was the official signature. He dismissed the one on letters sent to a UK firm as fake.<\/p>\n
He, however, admitted having discussed possible allocation of exploration blocks to Blue Star with Moses ole Sakuda, a former employee of the Geothermal Development Company (GDC), who was allegedly sacked from the State body in September.<\/p>\n
Mr Sakuda is a politician who vied against Internal Security minister George Saitoti for the Kajiado North parliamentary seat in 2007 and lost. People familiar with the oil exploration industry said the forged documents could be used to defraud international investors who are attracted by prospects of lucrative returns from what is seen as a looming petroleum find in Kenya.<\/p>\n
Mr Nyoike said Mr Sakuda’s links with Blue Star will also be investigated.<\/p>\n
James Alexander Duncan, an Australian who is said to be a frequent visitor to Nairobi, is listed as the managing director of Blue Star, which is allegedly based in Glasgow, Scotland.<\/p>\n
In one of the letters, the ministry promises Blue Star Trading that it had been allocated the five oil blocks about 350 nautical miles off the Mombasa Coast. “In our previous correspondence, I did indicate to Blue Star Trading company that my ministry is working with the Society of Surveys of Kenya to identify new oil blocks off the coast of Mombasa to an appropriate distance of 350 nautical miles in the Indian Ocean,” reads one of the letters.<\/p>\n
“Currently my office is putting together all the data of the above blocks and I am glad to inform you that the data process will be complete in the next two weeks.”<\/p>\n
In the other letter, Mr Murungi allegedly promises a lucrative profit share agreement to the firm.<\/p>\n
“The contractual agreement attached is for your legal team to begin to look at it in readiness for a formal, legal agreement between your company and the government of Kenya and will be based on a 50\/50 profits sharing agreements with the government after your costs when the blocks are fully operational,”<\/p>\n
Mr Nyoike, however, said the minister does not sign any letters at the preliminary application stages, and only signs the final contracts.<\/p>\n
Efforts to reach Mr Duncan were unsuccessful.<\/p>\n
Mr Sakuda, who admitted to knowing Mr Duncan and alleged that he had introduced him to Mr Nyoike, said he was not aware of the origin of the letters.<\/p>\n
He said he would co-operate with CID investigations into their origins.<\/p>\n
“I met Duncan in January when he was introduced to me as an investor, I am also shocked by the letters,” said Mr Sakuda.Oil exploration activity off the coast and in Nothern Kenya has picked up, as prospectors flock the region seen as a last exploration frontier.<\/p>\n
Two leading companies, Tullow Oil and Africa Oil, are expected to kick off new exploration tests next month. (READ:Dominion faces Tullow in search for oil in Kenya)<\/p>\n
The country is yet to discover any commercial oil deposits, but interest in various exploration blocks has grown since neighbouring Uganda discovered billions of barrels in its Lake Albert rift, where Tullow is expected to start production next year.<\/p>\n
Tullow Kenya BV is the operator of five exploration blocks in northern Kenya following deals last year in which Tullow signed agreements with Africa Oil and Centric Energy to gain a 50 per cent interest in five Kenyan licences; Blocks 10BA, 10BB, 10A, 12A and 13T.<\/p>\n
Exploration<\/strong><\/p>\nCanada’s Africa Oil is also expected to sink its first test well next month as part of an elaborate exploration programme in east Africa that is expected to cost $43 million. The company and its partners hold exploration licences in Kenya, Ethiopia, and Somalia’s semi-autonomous Puntland region.<\/p>\n
Africa Oil said it plans to drill at least seven to 10 exploratory wells in blocks it holds interest in across east Africa over the next 18 months.<\/p>\n
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Business Daily (Nairobi) Washington Gikunju 23 December 2011 The Energy ministry has launched investigations into a suspected cartel of fraudsters who are using forged government documents to dupe international financiers that they have allocations of oil exploration blocks in Kenya. <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-20399","post","type-post","status-publish","format-standard"],"yoast_head":"\n
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