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{
    "id": 788942,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/788942/?format=api",
    "text_counter": 196,
    "type": "speech",
    "speaker_name": "Hon. Musau",
    "speaker_title": "",
    "speaker": {
        "id": 2440,
        "legal_name": "Vincent Musyoka Musau",
        "slug": "vincent-musyoka-musau"
    },
    "content": "This is a long awaited Bill because it lays the framework for early exportation of oil. As we speak, we have oil that can be exported, but there lacks a framework and law to enable this to take place. The Big Four Agenda cannot survive without energy as a driver. Energy is required in quantity, reliability and also in terms of cost- effectiveness. This Bill together with the Energy Bill will go a long way in creating an enabling environment to allow investors to invest and also allow the country to have amounts of energy that are required to spur economic growth. Just to give a feel of the kind of oil we are talking about in Kenya, in early stages we are able to produce at least 50,000 barrels per day. That would be at very early stages. At the current cost of oil per barrel of US$64, that translates to about Kshs1.1 billion annually. On average, we expect to be exporting slightly higher than what Sudan is doing at over 500,000 barrels. That translates to Kshs1.1 trillion annually. Therefore, this is an interesting opportunity for Kenyans. As a Member of the Departmental Committee on Energy, we have learnt by engaging people who have done this before on how to do things and how not to do them. Oil is a potential cause of conflict. This Bill addresses some of those issues very well. For any country that has not done things properly in the business of producing oil, they will tell you about the importance of local content. How you engage the local community and how you share the revenue is of key interest. In this Bill, any contractor who wishes to explore oil in this country is first on entry expected to sign a production sharing contract. This document allows the contractor, through the consent by Government, to go and find oil. They agree that if you find oil, this is the percentage you are going to receive and this is the percentage the Government is going to produce. This document is of interest to Parliament because it must be ratified by us. The share of the national Government, according to this Bill, has extended beyond devolution which goes to the county to address the local community from where the resource is found. The local community is defined as the sub-county. Clearly, the sub-county where oil is found is going to get a good percentage which as stated by the law is 5 per cent. We have had deliberations and engagements through public participation which have strengthened this Bill and the relationship with the community so that once production starts, we do not fall into trouble. Therefore, with a county getting say 20 per cent and the local community getting say 10 per cent, 20 per cent translates to Kshs100 billion for Kshs500,000 barrels of course with capping. This will go a long way… The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}