Last Updated 13 years ago by Kenya Engineer
Amid the ongoing discovery of oil in Kenya, the government has halted the issuing of further licenses until a new law regulating the sector is signed. The new law will be sent to parliament by June for assent.
“We want first of all to get the policy and the Act in place which will happen before the end of this financial year that is, before June. And then from there we will be able to know how to move,” said Energy and petroleum principal secretary Joseph Njoroge.
Consultants Hunton & Williams and Challenge Energy – employed to help review the law – have recommended the Act includes clearly defined policies for upstream, midstream and downstream sections to avoid overlaps and reduce inefficiency.
It is also expected to provide guidance on natural gas exploitation, not adequately covered under existing law.
The new law will also allow for the creation and management of a sovereign wealth fund for petroleum revenue, and specify how revenue will be shared between national and local governments and communities where discoveries were made.
The PS said that seven new blocks will be up for licensing once the new energy law is in place.Kenya has previously said it will introduce licensing rounds with an auction-style format and move away from a first-come, first-served basis to award exploration blocks.
Extracts from Reuters
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