Kirubi urges equity in oil proceeds

May 10, 2012 9:05 am
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Speaking to the BBC on Thursday morning, Kirubi pointed out that proceeds from the find should be shared fairly among local residents, the country and the explorers/FILE

, NAIROBI, Kenya, May 10 – Industrialist Chris Kirubi has emphasised the need for proper legislation to be formulated on how revenues will be shared should the country find commercially viable oil in Kenya.

Speaking to the BBC on Thursday morning, Kirubi pointed out that proceeds from the find should be shared fairly among local residents, the country and the explorers.

“We are very much aware of the inequities of oil. There needs to be laws and regulatory framework to ensure that the sharing of resources are fair to the region this material is coming from and also to the investors,” he said.

He stated that doing this will enhance the profitability of any venture thus contributing positively to the economical development of the country.

“Nobody would invest if they are not seeing true benefits to their investment. It is a long term commitment and like marriage, we have to find a right way to benefit each other,” he said.

“The fact that we talk about it is so far different from the past. The fact is that many years ago, we never even knew what was available especially in boosting the economy.”

He called for enhanced partnerships between Kenya and other developed countries and singled out China for its contributions.

“China has done great things for the developing economies. They have not only committed their money but also their know-how. They have brought their people who have worked along with the local people,” he said.

“The huge number of people working on the construction of roads, the building of dams and many other projects of this nature is quite remarkable,” he stated.

The ongoing oil exploration in Turkana County has yielded an additional 80 meters of oil bearing column at the Ngamia 1 drilling site.

A total of 100 meters of oil reservoir has so far been discovered at the Ngamia 1 site after another 20 meters of net oil pay was found earlier.

The well which has now deepened from 1,041m to 1,515m was found with good quality oil bearing reservoirs with a total pay count of at least 100m has been determined over a gross oil bearing interval of 650 meters.

Kenya is the second country in East Africa to declare oil discovery after Uganda.

The precious commodity was discovered in Turkana which is plagued by incessant drought.

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