Kenyatta signs long-awaited petroleum law

Kenyatta signs long-awaited petroleum law

Kenyatta signs long-awaited petroleum law

/ Policy & Regulations / Wednesday, 13 March 2019 11:06

After a long wait, Kenyan president, Uhuru Kenyatta, signed petroleum bill into law to regulate oil exploration and production.

This law regulates oil contracts, exploration, development and production. It will be used to formulate national petroleum policies and outlines as well how revenues will be shared between local communities and companies.

Tullow Oil and its partner Africa Oil discovered commercial reserves in the Lokichar basin in 2012 and both companies are working towards a final investment decision (FID) by the end of the year.

Of the revenues due to the state, the bill signed grants 20 percent to local government, 5 percent to communities living where oil was found and 75 percent to central government. An earlier draft gave 10 percent to the communities.

The bill also said parliament would review the percentages within 10 years.

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