Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Contracts shed light on sharing of Turkana oil
Photo/File
"We signed a revenue-sharing formula before we started prospecting, but this remains Kenya’s not our oil,” said Tim O’Hanlon, Tullow’s vice-president for African business.
The government will get a substantial share of crude oil and acquire equity stakes in oil exploration firms that strike commercial quantities, according to a model production sharing agreement drawn by the Ministry of Energy.
While each contract will be tweaked to accommodate the special circumstances of each prospector, the agreement forms a framework through which the government would acquire stakes of more than 10 per cent in the successful firms.
