24 May 2023 in Senate:
Mr. Deputy Speaker, Sir, Kathuri Murungi and the Hon. Members of this House, the Senate, I am happy and privileged to come before you today to answer this Question raised by Sen. Lomenen. Mr. Deputy Speaker, Sir, please allow me because of the very topical nature of petroleum exploration in the region, particularly in our region in Northern Kenya, Turkana to give a small background so that we can all be in tandem with what is happening. I know there has been coverage in the media regarding some two oil upstream mergers Total Energy and Africa Oil relinquishing their 25 ...
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24 May 2023 in Senate:
Hon. Deputy Speaker, Sir, the first oil discovery was made in March, Ngamia Block 10 BB by Tullow BV followed by much more discoveries in Block 13T in the South Lokichar Basin. The oil reserves in the South Lokichar basins are estimated today at 504,000,000 barrels. In June 2018, the Government of Kenya launched the early oil pilot scheme, which entailed transportation of stored crude oil drawn from the appraisal wells testing activities. The storage was being done at site out there in Turkana. The process involved production of 2,000 barrels per day, and I think it was done for ...
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24 May 2023 in Senate:
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24 May 2023 in Senate:
to the Kenya Petroleum Refineries where we had some tank firms. That is where the storage was done in Mombasa over a two-year period. The objectives of the early oil pilot scheme were as follows- (1) It was meant to provide important technical well data as well as other data to optimize the field development plan and the design of the crude oil export pipeline. The report is currently on my desk. (2) Testing the marketability of the crude oil from the South Lokichar Basin. (3) Establishing a logistical infrastructure. Basically it was testing and confirming that those bridges needed ...
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24 May 2023 in Senate:
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24 May 2023 in Senate:
host government. The Government’s share of the profit oil is then shared in line with Section 58. I got the detailed correspondences. We are lucky to have done a comprehensive audit by an independent auditor known as Rosa Korea Associates of South Africa (RKA). We have a full audit report which confirms the total number of barrels as shown. That is 414,777 barrels for the two consignments that were off taken by the two companies that I mentioned. There was revenue of US$27,292,479 and the costs associated to the end-to-end project, which covers all the logistical issues and storage of ...
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24 May 2023 in Senate:
Thank you, Mr. Deputy Speaker, Sir. The objective of the early oil pilot scheme was to provide important technical data on our field development plan, test the marketability of the crude oil and establish logistical infrastructure, including reinforcing and strengthening the bridges that cargo lorries were to use. All these was to enable the national Government and county government gain the necessary experience. You will appreciate that we were preparing the country to go to the market. One of the things that Hon. Members will appreciate is that the initial phase of the project can be expensive. It is because ...
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24 May 2023 in Senate:
The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate.
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24 May 2023 in Senate:
we will need to confirm the economic commerciality of building a pipeline and a refinery. That report will come to this House. We have also checked the real detailed cost in a report done by an independent auditor. I have a report of 38 pages, which I did not table in this House. The report gives us all the details of the cost accrued to give us the negative number for the two cargos that were exported. It totaled to 414,777 barrels. As the Cabinet Secretary for Energy and Petroleum, we will submit the full FDP report to confirm the ...
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24 May 2023 in Senate:
Thank you, Mr. Deputy Speaker, Sir. Let me start with the question by the Senator for Kirinyaga County; Sen. (Dr.) Murango. This concerns the Corporate Social Responsibility (CSR) investments that we will undertake to ensure that the people of Turkana or Kenyans who live in the communities where we are prospecting and leveraging the economic development for this country are supported through CSR programmes. As I mentioned, today Total Energies and Africa Oil have exited and allowed Tullow Oil to take over the 100 per cent ownership of the blocks in Turkana. This is because with the challenge of climate ...
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