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{
    "id": 1242365,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1242365/?format=api",
    "text_counter": 92,
    "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 question from Sen. Kisang on whether we need to do a refinery or what is the way forward, these are details I alluded to in my earlier Statement. The economics of oil production in the report field development plan is a very comprehensive plan. I have got about a 400-page document in my office currently being looked at by the technical team to confirm the best option going forward. Let me give by way of example. If we were to produce at a certain rate and reach a plateau in two-three years and you have built a pipeline that can take so much product to the market and yet the production has gone down; it is a phenomenon which the companies prospecting would like to use to earn their profit by recovering their cost of production quickly and leave us almost sharing very little on the profit from the oil. So, we are looking at the economics of a pipeline or a refinery in Turkana, Isiolo, and Mombasa. We are also looking at the economics of tracking which does not look viable. Therefore, that comprehensive report translated into a commercial piece of business document will be brought to this House and we will possibly retreat to interrogate that report. This is because the early prospects to get the product to the market from drilling commercial wells, building the tankage in Turkana, the pipeline or a refinery are in the cost of the US$3.5 billion. That will be taken to cost oil. So, it will be recovered from our oil to cost."
}