06Jun 2022 by admin No Comments

KCSPOG 2022 MID YEAR OIL AND GAS UPDATE

KCSPOG authored blog/ articles
On 1st of June, Tullow Plc announced their agreement to merge with another British oil and gas company, Capricorn energy Plc to create “a leading African energy company with a material and diversified asset base and a portfolio of investment opportunities delivering visible production growth”. From the statement, each Capricorn shareholder will be entitled to receive 3.8068 new Tullow shares per Capricorn share and at the end of the merger, Tullow will hold 53 per cent of the combined shares and Capricorn the remaining 47 per cent. The planned merger into an African powerhouse listed at the London stock exchange shows the singular focus on Africa as the frontier for exploration and development and comes at an interesting time when there is renewed vigour for oil and gas development to…
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10Mar 2022 by admin No Comments

Expectations on Next Steps Following the Turkana Oil FDP Submission by Tullow

KCSPOG authored blog/ articles
By Emmaqulate Kemunto In December 2021, the Kenya Joint Venture (KJV) submitted its Field Development Plan (FDP) for the Turkana Oil to the Cabinet Secretary for approval. The FDP contains detailed information on the Turkana Oil project, including the number of wells, the size of land required for the project, the construction design, the designated petroleum waste disposal facilities, among others. It depicts the design of the project, and essentially the resulting impacts on the environment, climate, and surrounding communities. If the CS approves the FDP, we expect to see the Plan, together with the Production Sharing Contract (PSC), submitted to Parliament within 30 days for ratification as required under section 31 of the Petroleum Act. The Ratification process is to take a period of 60 days.    Why ratification?…
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09Mar 2022 by admin No Comments

Implications of the Russia -Ukraine crisis on Oil and Gas

KCSPOG authored blog/ articles
By Teresa Bosibori The Russian – Ukraine crisis has slowly been evolving in the last few weeks and the implications for the global oil and gas prices continue to unfold. Russia is one of the leading producers of oil and gas after the US and a big importer to Europe. At the beginning of the crisis, the oil and gas market responded with an increase of Brent crude oil prices that has now surpassed the $ 100 per barrel mark. The US and its allies moved to sanction Russia though there have been apprehensions from the Western powers to specifically sanction Russian oil and gas. Imposed sanctions have relatively been designed not to impact energy trade flows and energy related payment. However, these sanctions and corresponding effects on the financial…
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08Mar 2022 by admin No Comments

Gender-responsive energy transition

Industry Policies & Legislative Frameworks, KCSPOG authored blog/ articles
by Emmaqulate Kemunto Climate change as a threat multiplier Myth: Climate change affects everyone equally. Climate change affects different people differently, owing to pre-existing vulnerabilities and other socio-cultural factors. Women’s vulnerability to climate change impact is particularly higher because of pre-existing social, economic, cultural, and institutional marginalisation. For instance, 70% of the people living below the poverty line are women. Climate change is therefore a threat multiplier for populations with pre-existing vulnerabilities. These pre-existing disadvantages hinder women’s adaptive capacity to climate change. For this reason, one-foot-fits-all climate action which is blind to pre-existing gender gaps, marginalisation, and discrimination is biased and risks further perpetuating these inequalities. Therefore, climate action, including energy transition, must be gender-sensitive, gender-responsive, and human rights-based.  Energy transition as climate action Two-thirds of global greenhouse gas emissions…
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08Mar 2022 by admin No Comments
2022: An Upstream Outlook

2022: An Upstream Outlook

KCSPOG authored blog/ articles, Press Releases
by Rita Maina,Senior Advisor -Energy Transition In December 2021 The Kenya joint venture partners KJV(Tullow Oil Plc, Africa Oil and Total energies) submitted an updated field development plan (FDP) within the period of extension granted by the government of Kenya for Blocks 10BB and 13T. So what happens next? ActionCommentsReview of FDPThe minister and the contractor must jointly consider the field development plan. If there are no modifications or revisions, the FDP will be regarded as approved after 60 daysRatification by parliamentIn the current Petroleum Act passed in 2019, the FDP must go through a ratification process in parliament, including undertaking public participation. Since this law does not affect fiscal terms, the current act should supersede the 1984 Petroleum act.  Government participationThe government has six months to exercise its participation.…
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15Dec 2021 by admin No Comments

Is margin’s compensation a sustainable oil price stabilization mechanism?

KCSPOG authored blog/ articles
By Teresa Bosibori Petrol and diesel prices have remained unchanged for the November to December period following the monthly review by the Energy and Petroleum Regulatory Authority (EPRA) thus providing further relief to consumers from the consistent increase in rates. Fuel rates have now remained unchanged for the second consecutive month even though the landed costs of super increased by 4.6 per cent and diesel by 6.51 percent. On the other hand, supplier margins reduced by Ksh 6.26 for super and Ksh 5.50 for petrol. The review also comes at a time when inflation is rising and the Kenya Shilling is depreciating against the US Dollar at 111.91. Globally, crude prices are also on the rise with a barrel hitting an all-time high at 85 US dollars while the current…
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09Nov 2021 by admin No Comments

Tullow and its Joint Venture Partners Will Not be Flaring Associated Gas

KCSPOG authored blog/ articles, Uncategorized
by Emmaqulate Kemunto During a project disclosure workshop held by Tullow and its joint venture partners early this month, theinternational oil companies revealed that they will not be flaring the gas associated to the Turkana oilduring the production phase. This is in effort to reduce the project’s carbon footprint, given the pressurefossil fuels have on the environment, and the global crisis of climate change that is upon us.Hydrocarbon resources such as coal, and crude oil have been established as a significant contributor toenvironmental pollution and climate change, because they are very carbon intensive. During theproduction phase where oil is extracted from the wells on a large-scale basis, the extracted oil isassociated with two other components: produced water and associated natural gas. This is then takenthrough the separation facility, where the…
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05Oct 2021 by admin No Comments

Analysis of Tullow half-year results on the Kenya project.

KCSPOG authored blog/ articles
By Rita Maina FACT:Tullow Plc released its 2021 half-year results on 15 th September 2021 and overall showed itscommitment to continue pursuing the Kenyan project. The major update is that Tullow and itsJoint Venture (JV) partners are actively seeking a strategic partner before the final investmentdecision. They are currently looking for investors who would like access to the East Africa oiland gas upstream and midstream projects. In a bid to improve the investment prospects of theproject, they have included an additional field, Ekales, in the 1 st phase of the project. Theprevious development plans only had Twiga, Amosing, and Ngamia fields (TAN). The ongoingtechnical work in Ekales and strategic location which is between Ngamia and Twiga allows it tobe easily incorporated in the first phase. The 1 st phase will…
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22Sep 2021 by admin No Comments

Is Solar Power Our Best Bet To Sustainable Energy In Kenya?

KCSPOG authored blog/ articles
By Michelle Makena With the current trend in rise of energy resources in Kenya, it is safe to predict a further rise in electricity bills and fuel prices in oncoming months. In August, Kenyans paid Ksh.24.77 for a kilowatt of electricity consumed. In the month of September this has risen to Ksh.26.57 per unit of power. When we take a look at the petroleum prices, Kenyans are facing agony after the Energy and Petroleum Regulatory Authority heightened super petrol by Ksh.7.58 per litre. With the current national economy, this is a sharp rise that will press hard on Kenyans who are already struggling. Candidly, switching to more sustainable energy practices is the way to go if we do not wish to have a long-lasting negative impact on the Kenyan economy.…
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15Sep 2021 by admin No Comments

Petroleum and Mining Cabinet Secretary Terminates Petroleum Contracts

KCSPOG authored blog/ articles
By Charles Wanguhu The cabinet secretary for petroleum and mining has issued notices to terminate contractsissued to six oil and gas exploration companies within the Lamu Basin.According to media reports, these notices were issued on the 27 th of August 2021, citing failureof the companies to meet their obligations as outlined in their respective petroleumagreements. These companies are Zarara Oil and Gas, Octant Energy, A-Z Petroleum Products,Simba Africa Rift Energy, Lamu Oil and Gas, and Milio/Castac Oil.We have not had access to the termination notices but as per section 25 of the Petroleum Act,one of the reasons the Cabinet Secretary may terminate petroleum agreements at theexploration stage would be failure by the exploring company to meet their minimum work andexpenditure obligations.Firstly, it is crucial that companies that have exited and…
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