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Friday, June 30, 2017
It seems that countries in East Africa on the crux of monetizing their hydrocarbon resources just can’t seem to stop themselves from playing around with “laws in place” and delaying development projects. This has happened in Uganda, causing a delay of numerous years, while Tanzania just submitted three new laws that could affect its natural gas development, and now Kenya plans to delay oil production until laws are amended.
According to reports, Kenya has delayed plans to start crude oil production and exports until it passes an amended law that includes setting out how revenues will be shared between national and county government and local communities. Tullow Oil and its partners in the country had planned on beginning an Early Oil Pilot Scheme (EOPS) transporting oil from South Lokichar to Mombasa in June, however it now the EOPS will have to wait until the law clears.
The law is expected to be in place by late-September, after a new senate and national assembly convene following August elections.
“After consultation with the leadership of Turkana (county) and the community, we have decided that instead of having the project commence by this month, we will defer it until the bill which is pending before the Senate,” Energy and Petroleum Cabinet Secretary Charles Keter told a news conference. “So the one-month extension (is) until the next parliament – essentially August or September. We will do it before the end of the year, because it is a program that will run until the pipeline is done.”
Keter said they expect to award a contract soon to a company that will carry out an environmental impact study and a front-end engineering and design (FEED) for a crude oil pipeline.
“What we want right now, is to award for the environmental impact assessment and front-end engineering design, in preparation for the award for the construction of the pipeline. Anytime now, maybe by next month,” he said.
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