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{
    "id": 1242337,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1242337/?format=api",
    "text_counter": 64,
    "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": " Thank you, Mr. Deputy Speaker, Sir. The objective of the early oil pilot scheme was to provide important technical data on our field development plan, test the marketability of the crude oil and establish logistical infrastructure, including reinforcing and strengthening the bridges that cargo lorries were to use. All these was to enable the national Government and county government gain the necessary experience. You will appreciate that we were preparing the country to go to the market. One of the things that Hon. Members will appreciate is that the initial phase of the project can be expensive. It is because the objective was to ensure that there was seamless facilities are ready to market the oil. This was to an extent where the product could have been overstored. The storage had to be paid for in terms of holding the product in the KPRL, Turkana County oil fields and building the tank farms. Looking at the cost of any business when you go into business, you do not expect to make profit in the first two or three years because those are the years of investment. Mr. Deputy Speaker, Sir, I do not expect that this will be the obtaining position when we bring a comprehensive development report. The report will inform this House and the country on the profitability of the project in full financial closure and develop the oil fields. It will cost us Kshs3.4 billion to develop the whole infrastructural set up before production. It will also include the quantity and revenue that we will get after selling the product. Mr. Deputy Speaker, Sir, we will be advising this House and the country that it is a profitable business to go to. This was an experiment to prepare the country for oil. It was an early oil pilot scheme to prepare the infrastructure, ourselves and the capacity of our people in terms of county preparedness. The bridges also needed to be reinforced because not even one lorry could pass through. More importantly, from the economics of transporting crude oil, it would not make sense to transport crude oil by road. Through the Field Development Plan (FDP),"
}