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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24Aug 2020 by admin No Comments
Time to review the Price Control on Fuel?

Time to review the Price Control on Fuel?

Monthly Pump Price Tracker, Policy Surveillance, Press Releases
According to the Kenya Integrated Household Budget Survey (KIHBS) 2015/16, 36.1 per cent of Kenyans are living on less than Kshs. 1,900 per month for rural areas and less than Kshs. 2,700 per month for urban areas. This has likely worsened based on the findings of the Survey on Socio-Economic Impact of COVID-19 on Households Report conducted by the Kenya National Bureau of Statistics (KNBS) earlier this year which revealed that there was generally a decrease in the number of hours worked across sectors attributable to COVID-19 lockdown measures. While the recently rising global oil prices are a factor, policy options adopted by the government in the last 3 months (June-August) have equally exacerbated the effects of increments in pump prices on the pockets of the Mwananchi. It is unconscionable that…
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08Apr 2020 by admin No Comments

KCSPOG Press Statement on Early Oil Pilot Scheme Expected Revenues

Press Releases
The Early Oil Pilot Scheme (EOPS) that commenced in June 2018 is a scheme aimed at assisting Tullow, its Joint venture partners Africa Oil, Total and the Government of Kenya get more information from the oil wells, test the market for Kenya’s crude and the logistics of handling crude. In August 2019, the President of Kenya indicated that Kenya has found a buyer for the 200,000 barrels of crude oil stored in Mombasa at 12 Million dollars. The latter would represent a discount of $3.50 on the price of Brent crude in world markets. However, we are unable to determine the exact amount that shall accrue to government as the costs of EOPS are yet to be declared. It is worthy to note that while we have found a buyer…
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25Jun 2019 by admin No Comments

KCSPOG Press Statement on Early Oil Pilot Scheme Environmental and Social Impact Assessment (ESIA)

Press Releases
On the 3 of June 2018, President Uhuru Kenyatta flagged off trucks carrying oil from Lokichar to Mombasa to mark the onset of the Early Oil Pilot Scheme (EOPS). The EOPS is a scheme that is ostensibly meant to ensure that Tullow Kenya BV, its Joint venture partners Africa Oil and Total, and the Government of Kenya get more information from the oil wells, test the market for Kenya’s crude and the logistics of handling crude. The scheme is expected to result in the trucking of stored oil from Turkana and the production of 2000 (barrels of oil per day) bopd; the oil will eventually be shipped and sold on the international market. In its 2017 Annual report, Tullow noted that ‘oil produced is being initially stored until all necessary…
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25Jun 2019 by admin No Comments

Total Purchases Maersk Oil: Great Opportunity or Delays for Kenyan Project?

Press Releases
Maersk Oil made headlines last week through the decision by its parent company, Danish conglomerate A.P Moller-Maersk, to sell off to Total in a $7.45 Billion deal. The repercussions sent ripples across the oil and gas industry and may have a huge impact here in Kenya. In 2015, Maersk Oil completed a $427 Million farm-in agreement with Africa Oil Corp acquiring 50% of Africa Oil’s interests in Blocks 10BA, 10BB & 13T in Turkana County in Kenya. Tullow Oil is the operator of the aforementioned Kenya Blocks with a 50% interest, with Africa Oil Corp (25%) and Maersk Oil (25%) holding the remaining interests (collectively known as the South Lokichar Joint Venture). Preparations are currently ongoing to conduct Front End Engineering and Design studies in preparation for the Field Development…
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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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