Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 664639,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/664639/?format=api",
    "text_counter": 267,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "of money generated in the entire oil chain, but the local community has become spectators. They just see foreigners and Europeans flying around in choppers, but they do not benefit from the oil resource. The previous oil exploration regime which was captured in the Petroleum Exploration and Production Act of 1986 was terribly outdated and did not capture the current trends in this industry. That Act had very little to say about environmental issues which were not prominent in 1986. They became prominent after the Rio United Nations Conference. Mr. Temporary Speaker, Sir, 1986 was the height of one party rule in this country when the Central Government was very powerful; the height of the imperial presidency. The local communities were powerless. All resources belonged to Central Government. This Bill seeks to correct that by putting resources in the hands of the local communities and also to bring fairness in the distribution of resources. Mr. Temporary Speaker, Sir, I want to highlight two innovations; one which you will find in Part VI of the Bill which leads to local content issues. The question that arises even as we explore and develop the field is; what is in it for us, as Kenyans? Clause No.77(1) says:- “A contractor and a sub-contractor of the contractor conducting upstream petroleum operations shall –. a) comply with local content requirements in all of the contractor’s or sub-contractor’s operations; b) give priority to services provided and goods manufactured in Kenya where the goods meet the specifications of the petroleum industry as prescribed by the Kenya Bureau of Standards or in absence of a Kenyan standard any other internationally acceptable standard that the Authority shall approve; and c) ensure that priority is given for the employment or engagement of qualified and skilled Kenyans at all levels of the value chain: Provided that the cost of local content shall not be higher than at any other place.” Mr. Temporary Speaker, Sir, this is a very important innovation that this Bill is bringing to the oil exploration industry. When Tullow Oil first started to explore for oil in Turkana, we even had foreign doctors who came to treat people for scorpion bites as if there were no doctors in Kenya. What this Bill requires is that, as much as possible, that an international oil firm which is exploring or producing oil in this country must employ Kenyan professionals and workers. Mr. Temporary Speaker, Sir, you remember there was a riot in Turkana when the local community felt that they were not being involved in the operations. For example, they were not even providing transport. Indeed, we were so happy that after negotiations with the local leaders, a deal was done with Toyota Kenya to provide vehicles to some local businessmen in Turkana where they could have capacity to provide transport for the contractor. Mr. Temporary Speaker, Sir, the Senate Committee on Energy has extensively explored these local content issues. We have been to Brazil to study their local content system which is the most developed one in the world. In Brazil, which is one of the top producers of oil and gas in the world, all oil insurance companies must be Brazilian, all The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate"
}