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{
    "id": 1242330,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1242330/?format=api",
    "text_counter": 57,
    "type": "speech",
    "speaker_name": "Hon. Chirchir",
    "speaker_title": "The Cabinet Secretary for Energy and Petroleum",
    "speaker": {
        "id": 13110,
        "legal_name": "Zipporah Jepchirchir Kittony",
        "slug": "zipporah-jepchirchir-kittony"
    },
    "content": "host government. The Government’s share of the profit oil is then shared in line with Section 58. I got the detailed correspondences. We are lucky to have done a comprehensive audit by an independent auditor known as Rosa Korea Associates of South Africa (RKA). We have a full audit report which confirms the total number of barrels as shown. That is 414,777 barrels for the two consignments that were off taken by the two companies that I mentioned. There was revenue of US$27,292,479 and the costs associated to the end-to-end project, which covers all the logistical issues and storage of the petroleum products at the Kenya Petroleum Refineries Limited (KPRL) totaling to US$51,022,971 and the delta revenue, which is a deficit, is US$23,730,491. The table there shows that there was no profit oil. If anything, the IOC is owed US$23,739,491 on account of the early oil scheme. Therefore, there were no excess funds to be shared in this early oil project scheme in line with the provision of the Act. The second question was; what plans does the Government have to ensure that the Turkana Community receives their fair share of the oil revenue and could the Cabinet Secretary provide a timeline for this? Mr. Deputy Speaker, Sir, all revenue from petroleum will be shared in accordance with Section 58 of the Petroleum Act, 2019. The process will be undertaken in strict compliance with the Public Finance Management (PFM) Act, 2015, and of course, under the oversight of the Senate Standing Committee on Energy which will continue to confirm that we do obey the laws and we shall certainly do work in line with the Act established for this country. The Ministry is currently reviewing the Field Development Plan (FDP). This is a report which has been submitted to us to confirm the commerciality and the technical viability of taking this product and building infrastructure and making sure that it is economically viable. The report will soon be tabled in the House with a comprehensive technical report on its commerciality, both technical and economic, for ratification by Parliament. Afterwards, the contractor is expected to move to the final investment decision in the timelines that should be done within a year, and thereafter build the infrastructure within a period of three years so that we can get our first oil into the market. I thank you."
}