25Jun 2019 by admin No Comments

KCSPOG welcomes new U.S. Securities and Exchange Commission (SEC) Rules

Policy Surveillance
The adoption of the new rules for resource extraction companies by the U.S. Securities and Exchange Commission (SEC) are a welcome initiative and will prove to be a boon for organisations like the Kenya Civil Society Platform on Oil and Gas (KCSPOG) as we continue to carry out our mandate of increasing access to information. This shall in turn improve transparency and accountability of the Government of Kenya to its citizens. The new rules, mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, require oil, mining and gas companies to disclose payments made to the government for the commercial development of oil, natural gas or minerals. The payments to government that must be disclosed include taxes, royalties, fees (including licence fees), production entitlements, bonuses, dividends, payments for infrastructure…
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25Jun 2019 by admin No Comments

Potential Government Revenues from Turkana Oil

KCSPOG Reports
The ‘Potential Government Revenues from Turkana Oil’ Report analyses potential revenues from the Lokichar project This report seeks to provide an estimate of the scale and timing of possible Kenya national government and Turkana county government revenues from Turkana oil. The series of successful oil exploration wells in the South Lokichar basin has generated high expectations for the country as a whole and for the historically marginalized Turkana region in particular. Provisions in the 2015 draft Petroleum Bill for transfers of government oil revenue to Counties (20%) and Communities (5%) have also generated additional interest. The report heralds key findings on future revenues as below: 1. Under the “best case” assumption of production beginning in 2021, oil production reaches its peak in the years 2025-2030 before beginning a rapid decline.…
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25Jun 2019 by admin No Comments

KCSPOG Agenda For Kenya’s Oil And Gas Development

KCSPOG authored blog/ articles
We the Kenya Civil Society Platform on Oil and Gas having reviewed the state of development of the country’s emerging oil and gas industry, having understood the benefits and dangers that come with oil and gas production, aware that the country’s preparedness for the coming boom is in deficit, and appreciating our responsibility as civil society organisations and citizens of Kenya, have made the following observations which depict the true state of development of the oil and gas sector. We conclude that they need to be highlighted for consideration by the appropriate authorities to facilitate the development of the sector and ensure that it contributes to the development of our country. Institutional Framework a. The Cabinet Secretary wields excessive discretionary powers ranging from licensing of petroleum contracts, appointments of heads and boards of regulatory agencies and performance of…
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25Jun 2019 by admin No Comments

Tullow discloses payments but Kenya Energy bill falls short of making mandatory disclosures

Press Releases
Kenya Civil Society Platform on Oil and Gas  (KCSPOG) Monday 24, 2014 Nairobi, – Tullow in its released 2013 annual report available here has published all the tax,  royalty and other payments it has made to the Kenyan government across all levels. In the year ending  2013 Tullow announced that it paid a total of $22 million (approximately 1.8 Billion KES) in taxes to the national government. This is inclusive of VAT, withholding tax on imported services and PAYE on our employee salaries. The amount is also inclusive of $212,000 in license fees. The total payment shows a significant increase in government revenue and indicates a level of increased activity by the Oil Company operating in three basins in Kenya. These disclosures come at an opportune time as Kenya is…
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25Jun 2019 by admin No Comments

Potential Government Revenues from Turkana Oil (2016)

KCSPOG Reports
This report seeks to provide an estimate of the scale and timing of possible Kenya national government and Turkana county government revenues from Turkana oil. The series of successful oil exploration wells in the South Lokichar basin has generated high expectations for the country as a whole and for the historically marginalized Turkana region. Published revenue projections suggest that peak annual receipts to the Government of Kenya could range from USD 800 million to as much as USD 3 billion.1 Provisions in the 2015 draft Petroleum Bill for transfers of government oil revenue to Counties (20%) and Communities (5%) generate additional interest. Full Report
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25Jun 2019 by admin No Comments

Early Oil from Turkana – Marginal Benefits/Unacknowledged Costs Report (2018)

External Media Reports
The prospects for the full field development of Turkana oil continue to improve with Tullow Oil announcing a planned Final Investment Decision (FID) by 2019 and possible first oil in 2021/22. The barrier to the exploitation of Turkana oil continues to be oil export infrastructure. The only viable approach to the full development of the oil fields is a pipeline to the coast.Available evidence suggests that there is enough oil in the South Lokichar Basin to support an independent pipeline. The Government has already awarded the tender for an engineering plan (known as a Front End Engineering and Design or FEED) to Wood Group. According to Tullow, environmental and social impact assessment activities for the pipeline are also ongoing. An independent pipeline however will almost certainly result in additional delays. Tullow now reports that the earliest possible date for first exports through…
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25Jun 2019 by admin No Comments

Parliamentary Report on the Petroleum (Exploration, Development and Production) Bill, 2017

Policy Surveillance
Kenya Civil Society Platform on Oil and Gas (KCSPOG), in partnership with Platform member Natural Justice, submitted before the National Assembly’s Committee on Energy a memorandum on the Bill on 15th March, 2018. The Committee has since then published a report on the submissions/considerations/comments ,including those made by other key stakeholders. Our submissions are noted in Section 3.4 of the report. The Petroleum (Exploration, Development and Production) Bill, 2017 underwent the First Reading on 14th February, 2018 and thereafter committed to the Committee on Energy as provided for in the Standing order 127(1). The Committee while considering the Bill pursuant to Article 118(b) and Standing Order 127(3), invited the public submit representation/comments they might have on the Bill. This invitation was done through , a notification which was placed in…
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25Jun 2019 by admin No Comments

Update on the Petroleum Bill, 2017 (August 2018)

Policy Surveillance
The passage of the Constitution of Kenya, 2010 ushered in a new era of natural resource governance and management in Kenya. Hydrocarbons, Crude Oil in our case, which had previously been the property of the state, are now the property of the people of Kenya (managed for them by the State). To effect the Constitutional change relating to natural resources, the National Assembly in 2013 first introduced the Petroleum Bill. The Petroleum Bill, 2013 sought to repeal the Petroleum (Exploration and Production) Act which commenced in 1984. Since 2013 there have been four legislative attempts at obtaining a new Oil & Gas legal regime in Kenya. The National Assembly The latest attempt was in January 2018 when the Petroleum (Exploration, Production & Development) Bill, 2017 (Petroleum (E, P & D)…
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