Kenya’s crude oil export plan moves a step closer

Business Daily Kenya: 

Fred Aminga in addition to also Kirera Mwiti @PeopleDailyKe

Mining in addition to also Petroleum Cabinet Secretary John Munyes estimates which the closed Mombasa oil refinery will receive the first eight trucks of crude oil via Turkana County by May.

This particular will set the stage for export of Kenya’s crude oil to the international market for sampling in addition to also marketing as crude oil exploration continues in Lokichar.

However, Kenyans will still have to wait for Parliament’s nod to the Energy Bill, 2017 to continue implementation of the Early Oil Pilot Scheme (EOP), which will be aimed at establishing enabling commercial, physical in addition to also logistical infrastructure which will facilitate full-fledged development in addition to also exportation of oil.

A Sh100 million crude oil early production facility has already been set up at Amosing in Turkana in readiness for the evacuation of the oil via all the fields.

A temporary equipment which will enable Tullow Oil to connect all 40 wells This particular has dug in addition to also therefore achieve target of extracting 2,000 barrels of crude daily. Photo/FILE

“The issue of road network via Lokichar to Kitale has also been addressed in addition to also plans are underway to start ferrying some of the crude oil through road by May This particular year,” Munyes said at the Senate Committee on Energy retreat at Enashipai Spa in addition to also Resort in Naivasha.

Moves to submit reports to Parliament were in high gear over the weekend using a retreat for the committee in addition to also comments in addition to also recommendations on the Energy Bill, 2017 in addition to also Petroleum (Exploration, Development in addition to also Production) Bill 2017, being shared for consideration before submission.

During the meeting, Munyes ruled out proposals to construct a refinery in Lokichar, saying the government plans to construct a pipeline via Lokichar to Lamu in a multi-billion- shilling project which will be completed by 2021. He asked Turkana residents to support the government’s capital project, adding which Energy Bill had formulated how resources via the exploration might be channeled out.

“The national government will take 75 per cent of the proceeds while the rest will go to the grassroots through the county governments,” said the CS. While Turkana’s oil resources hold the promise of significant revenues, however, to ensure which the country gets optimal benefits via its petroleum resource endowment, the government needs to see through a set of reforms.

The main contentious issues within the Energy Bill will be the revenue sharing arrangements between national government in addition to also the county governments. Turkana County government has been pushing for a 30 per cent share of oil revenues, while the government has been advocating for 20 per cent if This particular does not exceed their annual budget allocation via national government.

The national government has been proposing which the host community’s share will be pegged at a few per cent of revenue, while the county government has been proposing 10 per cent.

Main reasons around these disputes lie in national government arguing which the counties do not possess the absorptive capacity to manage such funds in addition to also considerations which the resources, while presently having been discovered in Turkana, are essentially a national resource.

Meanwhile, local counties in addition to also communities argue which while This particular will be a national resource, they deserve more of the share as they are likely to be disproportionately impacted in terms of land rights in addition to also various other social disruptions.

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Kenya’s crude oil export plan moves a step closer

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