The Government and Canadian company Vanoil Energy Ltd have agreed to end their partnership in a major oil prospecting project in Lake Kivu.

The firm confirmed the development in a statement yesterday.

"The Government of Rwanda and Vanoil have agreed to end their discussions regarding the exploration of Lake Kivu in Rwanda following expiry of the Technical Evaluation Agreement (TEA) between them in June 2013,” the Vancouver-based oil and gas development company said in the statement.

"As part of this agreement, the Government of Rwanda and Vanoil have amicably resolved the issues referred to in the Conciliation Committee under the TEA.”

However, a government official told The New Times that Vanoil’s services had been found "wanting” and that the company had "constantly failed to meet government’s expectations” on oil prospecting.

"The government is already seeking new investors in the oil prospecting project,” the source said on condition of anonymity because they are not authorised to speak to the media on the matter.

Assessment efforts

Efforts to get a comment from Rwanda Development Board were futile as the officials, including chief executive Valentine Sendanyoye Rugwabiza, Chief Operations Officer Claire Akamanzi, and Head of Investment Promotion and Implementation Viviane Kayitesi had not responded to our enquiries by press time.

Vanoil commenced its Rwanda activities in 2010 with an environmental impact assessment in line with a technology survey on Lake Kivu.

In February, last year, it completed a two-month extension of its technical evaluation agreement with government, a move that provided it with exclusive rights to benefit from the possible production of oil in the Kivu Graben.

The deal had put Vanoil in a position where it could negotiate for a product sharing deal with the government in the event that oil is discovered.

Vanoil holds 100 percent interest in Kenya’s onshore oil Blocks 3A and 3B, acquired in October 2007 through a Production Sharing Contract with the Government of Kenya.

It also owns oil assets in Seychelles in the Indian Ocean.