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{
    "id": 788915,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/788915/?format=api",
    "text_counter": 169,
    "type": "speech",
    "speaker_name": "Hon. (Dr.) Pukose",
    "speaker_title": "",
    "speaker": {
        "id": 1458,
        "legal_name": "Robert Pukose",
        "slug": "robert-pukose"
    },
    "content": "Thank you, Hon. Speaker for that guidance. These are issues that Members will need to be informed about and guided on, especially the issue of local content. I am aware that issues to do with local content have created problems and have been misinterpreted. It will be very important that this House looks at those issues. I was saying that the crude oil that was found in Turkana is majorly waxy and has low sulphur content. This means that it is of a good quality. At full production, we will be producing around one million barrels per day. When you produce one million barrels per day, you need to look at what happens within the midstream. After drilling oil – it is done by rigs – you bring it to the well head and then from there you transport it to the storage facilities. So, you have to construct a pipeline. We will construct a pipeline from Lokichar all the way to Lamu. This is still within the midstream. Crude oil is not just meant for production of diesel, petrol and paraffin. It has more than that. The crude oil will be used for production of fertilisers and petrol chemicals. We will need to establish industries. This would still be done at the midstream level. So, as you set up the oil refinery you need to know how much oil is produced. That would be the essence of having the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor. It will enable us pull in Uganda and Sudan. We will definitely have to construct a big refinery that can handle all the oil products, including petrol and other chemicals. This Bill has looked into all those aspects. In our country, one of the biggest challenges is vandalism and encroachment. There are very important equipment that is going to be used in the exploration and production of oil and later the development of the oil industry. This equipment must be protected. We have taken care of that. We have made it very punitive for anybody to attempt vandalism or any manner of destroying the equipment. One of the biggest challenges when it comes to oil exploration is that when you import a rig and all its associated equipment, it is normally duty free. However, that money is loaded onto the Government as a stage of production. So, if you want to move the equipment from a company in Lodwar to Lamu, our law is so bad that both the Kenya Revenue Authority (KRA) and the customs require you to export it outside Kenya and import it again. These are things that we need to look at."
}