OFFICIAL SPEECH BY THE CABINET SECRETARY – MINISTRY OF PETROLEUM AND MINING, HON. JOHN MUNYES EGH DURING THE OFFICIAL SIGNING OF THE HEADS OF TERMS AGREEMENTS (HoTs), ON JUNE 25, 2019, WORKS BUILDING, 3RD FLOOR.

Last Updated 2 years ago by Kenya Engineer

The Principal Secretary, State Department for Petroleum, Mr Andrew Kamau

The Senior Vice President, Tullow Plc, Mr Mark MacFarlene

The Managing Director, Tullow Kenya, Mr Martin Mbogo

County Manager, Total Exploration, Ms. Purity Karau

Vice President, Africa Oil, Mr. Mark Dingley

Members of the press

Distinguished guests

Ladies and Gentlemen,

It is with great pleasure that I invite you to witness a significant milestone for Kenya’s Petroleum Sector Development – the official Signing of the Heads of Terms Agreements (HoTs) between The Government of Kenya and its Joint Venture Partners: Tullow Kenya, Total and Africa Oil.

The HoTs agreements provide a framework and commercial certainty required to move ahead with negotiating the fully termed upstream and midstream long form agreements ahead of the Projects’ Final Investment Decision (FID)

Ladies and Gentlemen

The HoTs agreements that we have signed today are for the discoveries of fields in Block 10 BB and 13 T in the South –Lokichar Basin

Specifically, the parties have agreed that Amosing, Ngamia and Twiga fields should be developed as the Foundation Stage of the development with a 60,000-80,000 bopd (barrels of oil per day) Central Processing Facility

This phased approach brings significant benefits as it enables an early FID, takes advantage of the current low-cost environment for both the field and infrastructure development and provides the best opportunity to deliver First Oil in a timeline that meets the Government of Kenya (GoK) expectations

They define our project by drawing out;
● The resources that will be developed within this agreement
● The obligations of each parties
● They also define Physical incentives such as the development of the Crude Oil Pipeline from Lokichar to Lamu and more

Ladies and Gentlemen

Following the signing, GoK together with the Joint Venture Partners will now focus their efforts on securing financing for the pipeline

At the same time, we will endeavour to finalize the ongoing Front-End Engineering & Design (FEED) and Environmental & Social Impact Assessment (ESIA) which are key to reaching FID

Ladies and Gentlemen

Mineral and Petroleum resources have the potential of becoming one of the Country’s biggest foreign exchange earners and the engine that drives our Country’s infrastructure growth. As you are well aware, Oil & Gas development is part of the enablers for the Big 4 agenda for this country

It is therefore our commitment to ensure that GoK together with its partners reach First Oil

GoK will also continue with further exploration in our Lamu, Anza, Mandera, and Tertiary Rift sedimentary basins, so as to ensure maximum development of our oil and gas resources