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{
    "id": 1242386,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1242386/?format=api",
    "text_counter": 113,
    "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": "Senator to address the issues of Isiolo and Kenya at large, regarding this electricity, where there is so much interest. Sen. Mbugua, we are looking at all the economics surrounding the Juba small refinery. When we bring the field development plan for our Turkana Oil Basin, we will show the economics of small and big refineries and the economics of the pipeline in relation to the total reservoir of oil that is already discovered in Kenya and to an extent that oil are platts priced. If the platts pricing of oil, in terms of costs for locally refining with that kind of refinery makes economic sense, then, we should be able to recommend that to this House. Therefore, the economics of all that will be in the field development report. However, more importantly is that when South Sudan refines its products through these small oil refineries, then, it should be enough for our region and cheap because of the platts pricing of oil. Nobody discounts oil. Why would you discount your product if the world price is given? Then, the freight and premium to bring the product from Juba to Kenya would be cheaper. One aspect in the petroleum space in Kenya today is that petroleum products is traded by Oil Marketing Companies (OMCs). It is off Government balance sheet. We do not trade in petroleum products with Government money. The OMCs bring the product, even if it is under the Government to Government into Kenya and they compete on freight and premium. Therefore, if the freight from Juba, South Sudan and the premium being charged by an OMC who wins the tender will be the most competitive, then, we will bring products from Juba or maybe Uganda, if they succeed to build the oil refinery. Yes, they will have a competitive advantage because of distance but do not forget that transport by sea is so cheap. Therefore, when the OMCs go out to bid, there will be some OMCs who will be considering the products from Uganda, South Sudan and Saudi Arabia using water transportation. Whoever gets the best premium and freight, we will pick that product and be able to use that to run the economy in a competitive way because we need the cost to come down in order to support our economy. Thank you."
}