Report On Consideration Of The Field Development Plan And Product Sharing Contracts For Blocks T6 And T7 In South Lokichar Basin

REPUBLICOFKENYA

PARLIAMENT

THIRTEENTHPARLIAMENT-FIFTHSESSION-2026

REPORTOFTHEJOINTCOMMITTEEOFTHENATIONALASSEMBLY DEPARTMENTALCOMMITTEEONENERGYANDTHESENATE STANDINGCOMMITTEEONENERGY

ON

CONSIDERATIONOFTHEFIELDDEVELOPMENTPLANAND PRODUCTIONSHARINGCONTRACTSFORBLOCKST6ANDT7IN SOUTHLOKICHARBASIN,TURKANACOUNTY

CLERK'SCHAMBERS DIRECTORATEOFCOMMITTEES PARLIAMENTBUILDINGS NAIROBI

TABLEOFCONTENTS

| LISTOFANNEXURES.. | LISTOFANNEXURES.. | LISTOFANNEXURES.. | |-------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------| | CHAIRPERSONSFOREWORD.. VII CHAPTERI.... | CHAIRPERSONSFOREWORD.. VII CHAPTERI.... | CHAIRPERSONSFOREWORD.. VII CHAPTERI.... | | INTRODUCTION | INTRODUCTION | INTRODUCTION | | 1.0 INTRODUCTION. | 1.0 INTRODUCTION. | 1.0 INTRODUCTION. | | 1.1. SUBMISSIONANDCOMMITTALOFFIELDDEVELOPMENTPLANANDPRODUCTIONSHARING CONTRACTS. | 1.1. SUBMISSIONANDCOMMITTALOFFIELDDEVELOPMENTPLANANDPRODUCTIONSHARING CONTRACTS. | 1.1. SUBMISSIONANDCOMMITTALOFFIELDDEVELOPMENTPLANANDPRODUCTIONSHARING CONTRACTS. | | 1.2. | COMMITTEEMEMBERSHIP. | | | 1.3. | JOINTSECRETARIAT... | | | 1.4. | COMMITTEEMANDATE. | | | 1.5. | METHODOLOGY..... | | | CHAPTERTWO. | CHAPTERTWO. | CHAPTERTWO. | | 2.0CONSTITUTIONAL,LEGALANDREGULATORYCONSIDERATIONS 6 | 2.0CONSTITUTIONAL,LEGALANDREGULATORYCONSIDERATIONS 6 | 2.0CONSTITUTIONAL,LEGALANDREGULATORYCONSIDERATIONS 6 | | 2.1 BACKGROUND. 6 | 2.1 BACKGROUND. 6 | 2.1 BACKGROUND. 6 | | 2.2 | CONSTITUTIONOFKENYA... | 6 | | 2.3 | PETROLEUMACT(CAP.308). | 6 | | 2.4 | ENERGYACT(CAP.314). | 6 | | 2.5 | REGULATIONS... | | | 2.6 PRODUCTIONSHARINGCONTRACTS | 2.6 PRODUCTIONSHARINGCONTRACTS | 2.6 PRODUCTIONSHARINGCONTRACTS | | 2.6.1 | ClausesofthieContracts. | | | 2.6.2 | Addenda.. | 8 | | CHAPTERTHREE... | CHAPTERTHREE... | 11 | | ANALYSISOFTHEFDPANDPSC | ANALYSISOFTHEFDPANDPSC | | | 14 | 14 | 14 | | BLOCKST6ANDT7INSOUTHLOKICHAR,TURKANACOUNTY. | BLOCKST6ANDT7INSOUTHLOKICHAR,TURKANACOUNTY. | BLOCKST6ANDT7INSOUTHLOKICHAR,TURKANACOUNTY. | | 14 | 14 | 14 | | 3.1ANALYSISOFTHEFIELDDEVELOPMENTPLAN. 3.1.1 Overview. 14 | 3.1ANALYSISOFTHEFIELDDEVELOPMENTPLAN. 3.1.1 Overview. 14 | 3.1ANALYSISOFTHEFIELDDEVELOPMENTPLAN. 3.1.1 Overview. 14 | | 3.1.2 14 3.1.3 | BackgroundandEvolutionofthieProductSharingContractsoftheSouthLokicharOilBasin AnalysisofProductionForecasting,Reserves,andSurfaceFacilities.. | | | 3.1.4 3.1.5 | SchieduleandCostProfilesofTheProjectOilKenya... | 17 | | 3.1.6 | ConmercialandEconomicAnalysisoftheProjectOilKenya..... AnalysisoftheMidstreamProjec.. | 20 | | | | 23 | | 3.1.7 | | | | ReviewofCriticalEnablers/SectoralInterventionsbyGoK.. 3.2LOCALCONTENT,ENVIRONMENTALANDSOCIALGOVERNANCE,WELLAND 25 | ReviewofCriticalEnablers/SectoralInterventionsbyGoK.. 3.2LOCALCONTENT,ENVIRONMENTALANDSOCIALGOVERNANCE,WELLAND 25 | ReviewofCriticalEnablers/SectoralInterventionsbyGoK.. 3.2LOCALCONTENT,ENVIRONMENTALANDSOCIALGOVERNANCE,WELLAND 25 | | RESERVOIRMANAGEMENT... | RESERVOIRMANAGEMENT... | RESERVOIRMANAGEMENT... | | 3.2.1 | | ...26 | | 3.2.2 | EnvironmentalandSocialGovernance(ESG):BalancingDevelopmentwithSustainability.26 | | | Benefit27 | WellandReservoirManagementPlan(WRMP):OptinizingResourceRecoveryforNational | | | 3.2.3Local Content Plan (LCPy:Fostering Economic lnclusionandCapacity Buitding CHAPTERFOUR. 28 | 3.2.3Local Content Plan (LCPy:Fostering Economic lnclusionandCapacity Buitding CHAPTERFOUR. 28 | 3.2.3Local Content Plan (LCPy:Fostering Economic lnclusionandCapacity Buitding CHAPTERFOUR. 28 | | COMMITTEEPROCEEDINGS 30 | COMMITTEEPROCEEDINGS 30 | COMMITTEEPROCEEDINGS 30 | | 4.0PUBLICHEARINGSINTURKANA,WESTPOKOT,UASINGISHU,TRANSNZOIA,LAMU ANDMOMBASACOUNTIES | 4.0PUBLICHEARINGSINTURKANA,WESTPOKOT,UASINGISHU,TRANSNZOIA,LAMU ANDMOMBASACOUNTIES | 4.0PUBLICHEARINGSINTURKANA,WESTPOKOT,UASINGISHU,TRANSNZOIA,LAMU ANDMOMBASACOUNTIES | | 4.1.1 | 4.1TURKANACOUNTY.. | ...30 ..30 | | 4.1.2 | MeetingwiththeTurkanaCountySecurityCommittee | ..30 | | 4.1.3 | Engagementwith tlheTurkanaCountyAssembly&TurkanaProfessionalsAssociation....31 | | | 4.1.4 | PublicBarazaatEkalesCentre,Lodwar-TurkanaCentral. | | | 4.1.5 | PublicParticipationatKalemgorok,TurkanaSoutlh.. | | | 4.1.6 | PublicParticipationatLokicharTown,TurkanaSouthConstituency.... | 37 | | 4.1.7 | PublicParticipationatNakukulas,TurkanaEastConstituency...... PublicParticipationatLopi,TurkanaEastConstituency..... | .38 | | 4.1.8 | PublicParticipationatLokori,TurkanaEastConstituency....... | 40 | | 4.1.9 | | 41 | | PublicParticipationatKatilia,TurkanaEastConstituency.. 4.2UASIN GISHU COUNTY.. 42 | PublicParticipationatKatilia,TurkanaEastConstituency.. 4.2UASIN GISHU COUNTY.. 42 | PublicParticipationatKatilia,TurkanaEastConstituency.. 4.2UASIN GISHU COUNTY.. 42 | | 4.2.1 | Submissionsby theMembersofthePublic. | .43 | | 4.2.2 | Remarksbygovernment agenciesduringthe townhallmeeting | 43 | | 4.2.3 | KenyaRailwaysCorporation,EldoretRailwayStation. | 44 | | 4.2.4 | KenyaPipelineCompany,EldoretTerminal(PS27). | 45 | | | 4.3WESTPOKOTCOUNTY | 49 .50 | | 4.3.1 | GulfEnergy.... | | | 4.3.2 | NationalIrrigationAuthority.... | 50 | | | | 51 |

| 4.3.3 | NorthRiftWaterWorksDevelopmentAgency | 55 | |------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|-------------------------| | 4.3.4 | TheLocal Community | .55 | | | 4.4TRANSNZOIACOUNTY... | ..56 | | 4.4.1 | TransNzoiaTurkanaCommunity-DiasporaChapter... | .57 | | 4.4.2 | MinistryofRoadsandTransportonroadreadinessforoilevacuation | .58 | | 4.5LAMUCOUNTY.... ..6.0 | 4.5LAMUCOUNTY.... ..6.0 | 4.5LAMUCOUNTY.... ..6.0 | | 4.5.1 | MeetingwiththeCountyCommissioner,LamuCounty | .60 | | 4.5.2 | MeetingwiththeGovernorofLamuCounty | .61 | | 4.5.3 | Submissionby theCountyGovernmentof Lamu... | .62 | | 4.5.4 | MeetingwithLAPSSETCorridorDevelopmentAuthorityOfficials | .63 | | 4.5.5 | TownHallMeetingheldatLamuMaritimeandInnovationCenter. | 65 | | 4.6MOMBASACOUNTY.. | 4.6MOMBASACOUNTY.. | .66 | | 4.6.1 | OfficeoftheGovernorMombasaCounty.... | 66 | | 4.6.2 | OfficeoftheRegional CommissionerCoastRegion... | .66 | | 4.6.3 | PublicParticipationForumHeld inMagongoStadium,ChangamweConstituency......67 | | | 4.6.4 | KenyaPetroleumRefineriesLimited(KPRL),KenyaPipelineCompany(KPC),andKenya | | | PortsAuthority(KPA)... | PortsAuthority(KPA)... | ...68 | | CHAPTERFIVE... | CHAPTERFIVE... | .70 | | 5.0SUBMISSIONSBYSTAKEHOLDERS,OILANDGASEXPERTSANDMEMBERSOFTHE | 5.0SUBMISSIONSBYSTAKEHOLDERS,OILANDGASEXPERTSANDMEMBERSOFTHE | ..70 | | PUBLIC... 5.1ENGAGEMENTWITHOILANDGASEXPERTS.. | PUBLIC... 5.1ENGAGEMENTWITHOILANDGASEXPERTS.. | .70 | | 5.1.1 | SubmissionsbyMr.MarkEluam.. | .70 | | 5.1.2 | SubmissionsbyEng.FredrickNgasikeEjore... | .71 | | 5.1.3 | SubmissionbyMr.MarkSenteu,CommercialDirector,PetroleumExperts.... | | | 5.1.4 | SubmissionbyMr.KenMugambi,anOil and GasProfessional.. | | | 5.1.5 | SubmissionbyZikharaSushil,OilandGasConsultant. | ..73 | | 5.1.6 5.1.7 | SubmissionbyJohanaEkwam...... SubmissionsbyJoel Lulunken... | 73 .74 | | 5.1.8 | Submissions byDr.BruceOgaga..... | .74 | | 5.1.9 | SubmissionsbyDr.EzekielEkuwom... | 75 | | 5.1.10 | SubmissionsongenderissuesandsocialprotectionbyMs.Basra Ali&HannahMoturi.76 | | | | Mr.JohnsonKibakiMirii. | | | 5.1.11 5.2ENGAGEMENTWITHMINISTRIES,DEPARTMENTS,OTHERGOVERNMENTAGENCIESANDTHE | 5.1.11 5.2ENGAGEMENTWITHMINISTRIES,DEPARTMENTS,OTHERGOVERNMENTAGENCIESANDTHE | ..76 | | CONTRACTORS.. | CONTRACTORS.. | ...77 | | 5.2.1 | SubmissionbytheCabinetSecretary,MinistryofRoadsandTransport. | ..77 | | 5.2.2 | SubmissionsbytheCabinetSecretary,MinistryofEnvironment,ClimateChangeandForestry 79 | 81 | | 5.2.3 5.2.4 | SubmissionbyControllerofBudget.... SubmissionbytheOfficeoftheAuditorGeneral. | 83 | | 5.2.5 | SubmissionsbytlheMinistryofEnergyandPetroleum.... | .84 | | 5.2.6 | Submissionby theKenyaRevenueAuthorities(KRA) | 86 | | 5.2.7 | MinistryofInteriorandNationalAdministration. | .89 | | 5.2.8 | SubmissionsbyGulfEnergyE&PBV. | 91 | | 5.2.9 | SubmissionsbytheOfficeoftheAttorneyGeneralandDepartmentofJustice... | .96 | | 5.2.10 | SubmissionbyCentralBankofKenya(CBK).... | .97 ..98 | | 5.2.11 5.2.12 | SubmissionbyTheNationalLandsCommission(NLC) TheNationalTreasuryandEconomicPlanning... | 99 | | 5.2.13 | MinistryofWater,SanitationandIrrigation... | .102 | | | | .103 | | 5.2.14 | SubmissionsbytheEnergy andPetroleumRegulatoryAuthority | | | 5.3SUBMISSIONSOFMEMORANDABYOTHERSTAKEHOLDERSANDMEMBERSOFTHEPUBLIC | 5.3SUBMISSIONSOFMEMORANDABYOTHERSTAKEHOLDERSANDMEMBERSOFTHEPUBLIC | ...107 | | 5.3.1 | KenyaPrivateSectorAlliance..... | 107 | | 5.3.2 | LokicharBusinessCommunityAssociation.... | .109 | | 5.3.3 | TheTurkanaProfessionalsAssociation(TPA) | ...109 | | 5.3.4 | TheSocialPerformanceProfessionalsAlliance(SPPA) | 110 | | 5.3.5 | TurkanaCommunityJusticeCentre(TCJC)andNakukulasEconomicDevelopment | | | Organization(NEDO) | Organization(NEDO) | 112 | | 5.3.6 NakukulasCommunityLandManagementCommittee(CLMC)andKapeseCommunityLand | 5.3.6 NakukulasCommunityLandManagementCommittee(CLMC)andKapeseCommunityLand | | | ManagementCommitte... | ManagementCommitte... | 112 | | 5.3.7 | TurkanaCivilSocietyConsortium(TCSC) | .114 | | 5.3.8 | Secretariat,KenyaYouthParliament... | .116 | | 5.3.9 | TurkanaSouthDriversandTransportAssociation... | .116 .117 | | 5.3.10 5.3.11 | ActionforJusticeandEquality... ConcernforProgressInternational | 119 |

| 5.3.12 | KenyaNationalChambersofCommerceandIndustry-TurkanaChapter..... | 120 | |-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------| | 5.3.13 | TheKraalEldersandCommunityLeadersofArooSub-County.. | 121 | | 5.3.14 | Mr.LokurukaJonahNanulen.. | 122 | | 5.3.15 | SubmissionbyAkideProfessionals'Association.... | 123 | | 5.3.16 | SubmissionbyBentworthEnergy..... | 124 | | 5.3.17 | SubnissionbyEnergy GovernancePlatform | 124 | | 5.3.18 | SubmissionbyGEMAWathoAssociation | 125 | | 5.3.19 | SubnissionbytheKenyaOiland GasWorkingGroup(KOGWG) | 126 | | 5.3.20 | SubnissionbyMiriamOsogo... | 127 | | 5.3.21 | Submission byMuchemiNdiang'ui | 128 | | 5.3.22 | SubmissionbyRael MunquuMue | 128 | | 5.3.23 | SubmissionbySammySisungo.. | 129 | | 5.3.24 | SubmissionbyZilharaSolutionsLtd. | 129 | | 5.3.25 | Submission byProfessorPLO-Lumumba,SC | 130 | | 5.3.26 | SubmissionByMs.CentrinaOtieno,aConcernedKenyanCitizen. | 131 | | 5.3.27 | SubmissionbyMr.BrianKipchumba Maiyo. | 132 | | 5.3.28 | Submission byMr.KelvinNyariboJomo... | 133 | | 5.3.29 | Submissionby Mr.Sani Nzevela.. | 134 | | 5.3.30 | Submission byMr.JustusAtuti. | 135 | | 5.3.31 | SubmissionbyMr.NalianyaSungwachaAugustine. | 136 | | 5.3.32 | SubnissionbytheSocialPerformanceProfessionals'Alliance..... | 137 | | 5.3.33 | SubmissionbyMr.IslimShikunyiImran... | 138 | | 5.3.34 | Submission byEsanyanaitAssembly... | 138 | | CHAPTERSIX. | CHAPTERSIX. | .140 | | 6.0COMMITTEEOBSERVATIONS | 6.0COMMITTEEOBSERVATIONS | 140 | | 6.1OBSERVATIONSONCOMPLIANCEANDPUBLICPARTICIPATION. | 6.1OBSERVATIONSONCOMPLIANCEANDPUBLICPARTICIPATION. | 140 | | 6.2OBSERVATIONSFROMTHEANALYSISOFTHEFIELDDEVELOPMENTPLANANDPRODUCTIONSHARING | 6.2OBSERVATIONSFROMTHEANALYSISOFTHEFIELDDEVELOPMENTPLANANDPRODUCTIONSHARING | 6.2OBSERVATIONSFROMTHEANALYSISOFTHEFIELDDEVELOPMENTPLANANDPRODUCTIONSHARING | | CONTRACTSANDSUBMISSIONSFROMSTAKEHOLDERS. | CONTRACTSANDSUBMISSIONSFROMSTAKEHOLDERS. | ..149 | | 6.3OBSERVATIONSARISINGFROMTHEPUBLICHEARINGS. | 6.3OBSERVATIONSARISINGFROMTHEPUBLICHEARINGS. | ...155 | | CHAPTERSEVEN.. 7.0COMMITTEERECOMMENDATIONS.. | CHAPTERSEVEN.. 7.0COMMITTEERECOMMENDATIONS.. | ..162 |

LISTOFABBREVIATIONSANDACRONYMS

| FDP | FieldDevelopmentPlan | |---------|--------------------------------------------| | PSC | ProductionSharing Contracts | | MOEP | MinistryofEnergyandPetroleum | | EPRA | EnergyandPetroleumRegulatoryAuthority | | KPC | KenyaPipeline Company | | KPRL | KenyaPetroleumRefineriesLimited | | NOC | National Oil Corporation | | GoK | GovernmentofKenya | | KETRACO | KenyaElectricityTransmission Company | | KPLC | KenyaPower and Lighting Company | | KeNHA | KenyaNationalHighwaysAuthority | | KPA | KenyaPortsAuthority | | KRC | KenyaRailways Corporation | | KAA | KenyaAirportsAuthority | | KCAA | KenyaCivilAviationAuthority | | NLC | National LandsCommission | | WRMA | WaterResourcesManagementAuthority | | AG | AttorneyGeneral | | KES | Kenya Shillings | | MMstb | MillionStackTankBarrels | | EOPS | EarlyOil MarketScheme | | VAT | ValueAddedTax | | RDL | RailwayDevelopmentLevy | | IDF | InputDeclarationFee | | GEL | Gulf EnergyLimited | | Stb/d | StockTankBarrelper day | | MGR | Meter GaugeRailway | | SGR | Standard GaugeRailway | | GEBV | GulfEnergyE&PB.V | | FY | Financial Year | | ESG | Environmental&SocialGovernance | | IFC | InternationalFinance Corporation | | ESMP | EnvironmentalandSocialManagementPlan | | CO2 | Carbondioxide | | ESPs | Electrical SubmersiblePumps | | WRMP | Well andReservoirManagementPlan | | KURA | Kenya UrbanRoadsAuthority | | KeRRA | KenyaRural RoadsAuthority | | SPPA | SocialPerformanceProfessionalAlliance | | TPA | TurkanaProfessionalsAssociation | | LAPSET | LamuPort-SouthSudan-Ethiopia-Transport | | SEZ | Special EconomicZones | | KM | Kilometers | | MW | Megawatts | | EMCA | EnvironmentalManagementand CoordinationAct | | NEMA | NationalEnvironmentalManagementAuthority | | MoU | Memorandum ofUnderstanding | | KDF | KenyaDefenceForces | | CSR | CorporateSocialResponsibility | | TVET | Technical&Vocational EducationandTraining | | DDT | Defensive Driving Training |

HCDTF

Host CommunityDevelopmentTrustFund

PWDs

PeopleWithDisabilities

KLMC

KalabataLandManagement Committee

EGP

EnergyGovernancePlatform

KOGWG

KenyaOil&GasWorkingGroup

HRDD

Human RightsDue Diligence

LCP

Local ContentPlan

EMCA

Environmental Management and Co-ordinationAct

• 1.AnnexI:AdoptionList
• 2.Annex2:Minutes
• 3.Annex3:Copies ofAdvertisements
• 4.Annex4:PublicParticipationMatrix
• 5.Annex5:SubmissionsbyStakeholders
• 6.Annex 6:Scheduleof PublicHearings
• 7.Annex 7:Schedule of StakeholderMeetings
• 8.Annex 8:Public Hearings Attendance Schedule
• 9.Annex9:ListofPetroleumExperts

LISTOFANNEXURES

CHAIRPERSONSFOREWORD

Thisreport presents the proceedings of theJoint Committeeof theDepartmental Committee onEnergyoftheNational Assembly and theSenateStandingCommitteeonEnergy,conducted pursuant toStandingOrder No.213andtheFourthScheduleoftheNationalAssembly Standing Orders,aswell as Standing Order No.229and the First Schedule of the Senate Standing Orders,on the consideration of the Production Sharing Contracts(PSCs)forBlocks T6and T7 and the Field Development Plan (FDP) in the South Lokichar Basin,Turkana County.

On Thursday,27h November2025,the PSCsfor Blocks T6and T7 and FDP for the South LokicharBasin were tabled in theNational AssemblyofKenya and theSenate ofKenya pursuant toArticle71(1)oftheConstitutionofKenya andSection31(1)ofthePetroleumAct, Cap.308.These provisionsrequire that any grant of rights or concessionsfor the exploitation ofnatural resourcesby oronbehalfof theNational GovernmentberatifiedbyParliament.The documentswerethereafterformallycommitted totheDepartmental CommitteeonEnergy and theStanding Committee onEnergy of theNationalAsseimbly and theSenaterespectively,for considerationandthesubsequentsubmissionofreportstotherespectiveHouses.

The PSCs andFDPoutline theproposedcommercial development ofsixoil discoverieswithin the South Lokichar Basin,Turkana County.The documents detail the strategy for the development of the discoveries and additional appraisal and exploration activities aimed at maximizingresourcerecoverywithin thedesignateddevelopmentArea.

Pursuant to theprovisionsofArticle118oftheConstitutionandSection31(3)ofthePetroleum Act Cap.308,theJoint Committeewasrequired tofacilitatepublicparticipation and make appropriaterecommendations to the Houses onProduction Sharing Contractsand theField DevelopmentPlan.

Accordingly,pursuant toArticle118(1)(b)of the Constitution of Kenya,2010 and Section 31(3) of the Petroleum Act, Cap. 308,the National Assembly and the Senate placed advertisements in the dailynewspapers on Saturday,29thNovember2025 andThursday,18th December 2025,respectively,invitingmembers of the public to submit views on thePSCs and FDP.Copiesof the newspaper advertisements are attached as Annex3.

TheJoint Committeethereafterreceivedandconsideredmemorandafrommembersofthe public by Friday,16January 2026,as detailed in thematrix attachedasAnnex5.

Article 96of the Constitution mandates the Senate to represent and protect the interests of countiesand their governments.Article 95(2)of the Constitution mandates the National Assembly to deliberate on and resolve issues ofconcern tothepeople.Accordingly,theJoint Committee identified six(6) counties expected to experience direct and significant impacts fromtheimplementation oftheProductSharingContracts and theSouth LokicharBasinFDP, namely:Turkana County,West Pokot County,Uasin Gishu County,Trans Nzoia County, Lamu County,and Mombasa County.The Joint Committee held public hearings in the aforementionedcountiesbetween12Januaryand 6hFebruary,2026asper theschedule attached asAnnex7.

Subsequently,ataretreatheld atHiltonGardenInnHotelfrom9to16tFebruary,2026,the Joint Committeereceivedsubmissions on theFDPandPSCsfromkeystakeholders asfollows:

• 1.MinistryofEnergy and Petroleum
• 3.MinistryofInteriorandNational Administration
• 2.TheNational Treasury and EconomicPlanning
• 4.Ministry ofRoadsand Transport
• 5.OfficeoftheAttorneyGeneral
• 6.Ministry OfLands,PublicWorks,Housing andUrbanDevelopment
• 7.Ministry ofWater,Sanitation andIrrigation
• 8.MinistryofEnvironment ClimateChangeandForestry
• 9.KenyaRevenue Authority
• 10.Central BankofKenya
• 11.OfficeoftheAuditorGeneral
• 12.TheNational Lands Commission
• 13.National Environmental ManagementAuthority
• 14.KenyaLawReformsCommission
• 15.BusinessRegistrationServices
• 16.GulfEnergyBV
• 17.Variousexperts and interestedparties.

A schedule oftheJoint Committee'sstakeholdermeetingsis attachedasAnnex5.In addition to these consultations,theJoint Committeereviewed technical andnon-partisananalysesfrom theParliamentaryBudget Office,theNationalAssemblyandSenate-Directoratesof Legal Services,and theParliamentaryResearchServices.

Altogether,the Joint Committee held a total of twenty-five (25) sittings,during which it examined the PSCs and FDP,considered public submissions,engaged key stakeholders,and reviewed technical analyses from non-partisan parliamentaryoffices.Based on this comprehensivereview,theJointCommitteeissatisfied thatthePSCsandFDPforBlocksT6 andT7in the South LokicharBasin,Turkana County,are alignedwithnational interests and complywiththerequisiteconstitutional,legalandregulatoryframework.

Accordingly,the Joint Committeerecommends that theHousesadopts the Reportand approves the Ratification of the Production Sharing Contracts and Field Development Plan forBlocks T6and T7inSouth LokicharBasin,Turkana.County.

Acknowledgements

TheJoint Committee isgrateful to theofficesof theSpeakers and Clerksof theNational Assembly and theSenateforthelogistical andtechnical support accordedtoitintheexecution ofitsmandate.

Further,theJoint CommitteeacknowledgeswithappreciationtheMembers and theSecretariat for their patience,dedication,sacrifice,and commitment,which enabled the successful Committee,the Co-Chairsalsoextend sincere thanks to themembersofthepublicand the various stakeholders who appeared before the Committee and submitted their views, contributingsignificantlytothereviewprocess.

Itis thereforemy pleasant duty and privilege,on behalfof the Joint Committee of the DepartmentalCommitteeonEnergyof theNational Assemblyand the SenateStanding Commitee on Energy to table its Report on the consideration of the Production Sharing Contracts(PSCs)forBlocksT6and T7and theField DevelopmentPlan(FDP)in theSouth LokicharBasin,Turkana County,forconsideration and adoption by theHouse.

Sen.(Dr.) Oburu Oginga,MGH,M.P. Chairperson,SenateStandingCommitteeonEnergy

Hon.David Gikaria,C.B.S,M.P. Chairperson,Departmental CommitteeonEnergy

1.0Introduction

CHAPTERI

INTRODUCTION

• 1.Thisis the report of theJoint Committee of theDepartmental Committee on Energyof the National Assembly and theSenateStanding Committee on Energy on its consideration of the Field Development Plan (FDP)and Product Sharing Contracts (PSCs)for Blocks T6 and T7in South Lokichar,Turkana County inaccordance with Article 71(1)of the Constitution asread together with Section31(1) of thePetroleumAct,Cap308.

1.1.Submission and CommittalofField DevclopmentPlan and ProductionSharing Contracts

2. The instrumentswere submitted and tabled in the Housespursuant toArticle 7lof the Constitution ofKenya,whichrequires thatgrantofarightorconcessionbyoronbehalfof theNational Government for the exploitationof any natural resources inKenya,shall be subjectedtoratificationbyParliament. 2. 3.Togive effect toArticle71of the Constitution of Kenya,section31(l)of thePetroleum Act,Cap.308provides that theCabinetSecretary shall,within thirty daysof the approval ofaFieldDevelopmentPlansubmitted in accordancewiththe termsofaProduction Sharing Contract entered into under the Act,submit the Production Sharing Contract togetherwiththeFieldDevelopmentPlantoParliamentforratificationinaccordancewith Article7loftheConstitution. 3. 4.TheField Development Plan and ProductionSharing Contractswere tabled in theHouses onThursday,27November2025andsubscquentlycommitted to theNationalAssembly Departmental Committee on Energy and theSenateStanding Committee onEnergyfor considerationandreportingto theHouses.

1.2.CommittceMembership

• 5.Thefollowing are theMembersof theSenateStanding Committee onEnergy-
• 4.Sen.Ledama Olekina,M.P.

3. Sen.(Dr.) Boni Khalwale,CBS,M.P.

• 5.Sen.James Lomenen Ekomwa,M.P.
• 7.Sen.Edwin Watenya Sifuna, CBS,M.P.
• Sen.(Dr.) Danson Buya Mungatana,MGH,M.P.
• 8.Sen.Veronica Maina,CBS,M.P.
• 9.Sen.Beatrice Akinyi Ogola,M.P.
• 6.Thefollowing are theMembersof theNational AssemblyDepartmental Committeeon Energy-

• 1.Sen.(Dr.) Oburu Oginga,MGH,M.P.

Chairperson

• 2.Sen.William Kisang’Kipkemoi, M.P

Vice-Chairperson

• 1.The Hon.David Gikaria,CBS,M.P. Chairperson

2. The Hon.Lemanken Aramat,CBS,M.P.

Vice-Chairperson

3. The Hon. Simon Kingara,CBS,M.P.

• The Hon.Samuel Gonzi Rai,M.P.

• The Hon.Charles Gimose,M.P

• The Hon.Elisha Odhiambo,M.P.

7. TheHon.Julius Musili Mawathe,M.P.

8. The Hon.Walter Owino,M.P.

• 9.The Hon.Tom Mboya Odege,M.P.

• 10.TheHon.GeorgeOmweraAladwa,M.P.

• 11.The Hon.VictorKoechKipngetich,M.P.
• 13.TheHon.CeciliaAsinyen Ngitit,M.P.
• 12.TheHon.GeoffreyEkesaMulanya,M.P.
• 14.TheHon.BarongoNolfasonObadiah,M.P.
• 15.The Hon.Siyad Amina Udgoon,M.P.

1.3.Joint Secretariat

• 7.The Joint Committeewas scrved by the followingmembers of secretariat-

Senate

• 1.Mr.Boniface Lenairoshi

Deputy Director

• 2.Dr.Christine Sagini

Senior ClerkAssistant

3. Ms.Mary Waqo

ClerkAssistantII

4. Mr.AbdirahmanH.Gorod

SeniorFiscalAnalyst,PBO

5. Mr.Joseph Lekisima

Fiscal AnalystII,PBO

6. Ms.ZeinabJirma

Legal Counsel II

7. Ms.Nancy Mulei

Research Officer III

• 8.Mr.Washington Otiato

MediaRelations OfficerII

• 9.Ms.Judith Aoka

Audio Officer

National Assembly

| 1.Mr.Fredrick Otieno | ClerkAssistantI | |------------------------|-------------------------| | 2. Mr.SalimAthumam | ClerkAssistant III | | 3. Ms.Brigitta Mati | SeniorLegal Counsel | | 4.Mr.Brian Njeru | Fiscal AnalystII,PBO | | 5. Mr.RobertLangat | Research Officer III | | 6. Mr.AmbroseNguti | MediaRelation OfficerII | | 7.Ms.RehemaKoech | AudioOfficer |

1.4.CommitteeMandate

• 8.Article96oftheConstitutionmandatestheSenate torepresentandprotect theinterestsof countiesand their governments,while Article95(2)mandates theNationalAssembly to deliberateon andresolveissuesofconcerntothepeople.

9. TheDepartimental CommitteeonEnergyof theNationalAssemblyisestablishedunder standingorder289oftheNationalAssemblyStandingOrdersandismandatedtoconsider allmattersrelatingtofossilfuelsexploration,development,production,maintenanceand distribution,nuclearenergy,cleanenergy and regulation ofenergy.

• 10.TheStandingCommitteeonEnergyoftheSenateisestablishedunderstandingorder228 (3)oftheSenateStandingOrdersandismandated toconsiderallmattersrelatedtofossil fuels exploration,development,production,maintenance andregulationofenergy.
• 11.Inacommunicationdated4December,2025,theSpeakeroftheNationalAssembly urged theDepartmentalCommitteeonEnergyof theNationalAssemblyand theStanding CommitteeonEnergyof theSenatetoconvenejointsittingsfortheexaminationof the contracts and the conduct of public participation.This was aimed at ensuring consistency, eliminatingduplication,promotingabicameralapproachandexpeditingtheconsideration process.Subsequently,on29thDecember,2025,theSpeakerof the Senate approved the formationofaJointCommitteecomprisingtheStandingCommitteesonEnergyofthe NationalAssemblyand theSenatetoconsidertheFDPandPSCs.

1.5.Methodology

• 12.Atits inaugural meeting held onWednesday,7th January,2026,the Joint Committee considered and adopted a joint schedule for public participation and stakeholder engagement.In this regard,the Joint Committee identified six(6)counties that will experience direct and significant impacts arisingfrom the implementation of theSouth LokicharFDPasfollows-
• a)Turkana
• b) West Pokot
• C) Uasin Gishu
• c) TransNzoia
• d) Mombasa
• e) Lamu
• 13.TheJoint Committeeresolved to undertakepublicparticipationin Turkana,Uasin Gishu TransNzoiaandWestPokotCountiesfomMonday,12January026toSaturday,7th January,2026.Tonote,owing tologisticalconstraints and unavailability of flights,the Committeewasunableto commence theplannedpublicparticipation exercise inLodwar onTuesday,13hJanuary,2026,asresolved,and thevisitwasrescheduled to2nd to6th February,2026.
• 14.Additionally,theJoint CommitteeundertookpublicparticipationinMombasa andLamu CountiesfromTuesday,20thJanuary,2026toSaturday,24hJanuary,2026.Ascheduleof the County-basedpublicparticipation hearingsis attached as Annex4.
• 15.Further,at aretreatheld at Hilton Garden Inn Hotel from9th to16thFebruary,2026,the JointCommitteereceived submissionson theFDPandPSCs from the followingkey stakeholders-
• 1.Ministry of Energy and Petroleum
• 2.The National Treasury and EconomicPlanning

3. MinistryofInteriorandNationalAdministration 4. Ministryof RoadsandTransport 5. OfficeoftheAttorneyGeneral 6. Ministry Of Lands,PublicWorks,Housing andUrbanDevelopment

• 7.MinistryofWater,Sanitation andIrrigation
• 8.MinistryofEnvironment Climate Change andForestry
• 9.Kenya Revenue Authority
• 10.Centrai BankofKenya
• 11.Office oftheAuditor General
• 12.TheNational Lands Commission
• 13.National Environmental Management Authority
• 14.Kenya LawReformsCommission
• 15.BusinessRegistrationServices
• 16.GulfEnergyBV
• 17.Variousexperts andinterestedparties(seeAnnex7forthelistofexperts)

AscheduleoftheJoint Committee'sstakeholdermeetingsisattachedasAnnex8

• 16.In addition tc these consultations,theJoint Committeereviewed technical andnon-partisan analyses from the Parliamentary Budget Office,theNational Assembly and SenateDirectorates of Legal Services,the Parliamentary Research Services and the Clerk's Chambers.
• 17.Theaforementioned Joint Committeeproceedingswere aimed at establishingwhether the PSCsand FDParealignedwithnationalinterestsandcomplywith therequisite constitutional,legalandregulatoryframework

CHAPTERTWO

2.0CONSTITUTIONAL,LEGALANDREGULATORYCONSIDERATIONS

• 18.Thefollowing section summarizestheconstitutional,legal andregulatoryframework governingratificationoftheProductionSharingContracts and theFieldDevelopmentPlan.

2.1 Background

• 19.On27thNovember,2025,theMajorityLeadersof theNationalAssembly and the Senate laid ontheTableoftheNationalAssembly and theSenaterespectively;
• (a)TheSouthLokicharFieldDevelopmentPlan,September,2025.
• (b)TheProductionSharing Contractbetween the Governmentof theRepublicofKenya andTurkanaDrillingConsortium(Kenya)relatingtoBlock10BB.
• ()TheProductionSharing Contract between the Governmentof theRepublicofKenya andPlatformResourcesINC.relating toBlock13T.
• (d)TheFirstAddendumto theProductionSharingContractbetween theGovernmentof theRepublicofKenya and GulfEnergyE&PB.VrelatingBlockT6formerlyBlock10 BB.
• (e)TheFirstAddendum to theProductionSharingContract between the Governmentof theRepublicofKenya andGulf EnergyE&PB.VrelatingtoBlockT7formerlyBlock 13T.

2.2ConstitutionofKenya

• 20.Article71oftheConstitutionstatesthatatransactionissubjecttoratificationbyParliament ifit involvesthegrantofarightor concessionby oronbehalfofanyperson,includingthe nationalgovernment,to another personfor theexploitation of:anynaturalresourceof Kenya.

2.3PetroleumAct(Cap.308)

• 21.Section 30of the Petroleum Act,Cap.308,regulates thedevelopment ofa Field DevelopmentPlan andprovidesthat:(1)wherea commercialfieldisestablished,suchfield shall be developedby the contractorwithin suchtimeasmaybeprescribedin thisAct and thepetroleumagreement.
• 22.Section30(2)of thePetroleum Actprovides thatacontractor shallpreparea field developmentofandproductionfrom thefield;(b)anassessmentofwhetherthe developmentofandproductionfromthefieldshouldbesubjecttounitizationorjoint upstreampetroleumoperationsinaccordancewiththeprovisionsofthisAct;(c)an assessmentofhowtocoordinateupstreampetroleumoperationswithothercontractors, includingthejointuseoffacilitiessubjecttothisActandanyotherapplicablelaw;(d) proposalsrelatingtothespacing,drillingandcompletionofwellsandthefacilities requiredfortheproductionofpetroleumincluding-(i)theestimatednumber,sizeand productioncapacityofproductionplatforms,ifany:(ii)theestimatednumberofproduction wells;(i)theparticularsofproductionequipmentandfacilities;(iv)theparticularsof feasiblealternativesfortransportationofpetroleum,includingpipelines;and(e)anyother relevantinformationanddata.
• 23.Section30(3)ofthePetroleumActprovidesthatthefielddevelopmentplanshall be submittedbythecontractortotheEnergyandPetroleumRegulatoryAuthorityforreview inaccordancewiththepetroleumagreement.

• 24.Section30(3)of thePetroleumActprovides that theEnergy andPetroleumRegulatory AuthorityshalladvisetheCabinetSecretarybeforeapprovalofthefielddevelopmentplan
• 25.Section 31(1) of thePetroleum Act provides for ratification of the production sharing contractstogetherwiththefielddevelopmentplanbyParliamentandstatesthattheCabinet Secretaryshall,within thirtydaysoftheapproval ofafielddevelopmentplansubmitted in accordance with the termsofa production sharing contractentered into under this Act, submittheproductionsharingcontracttogetherwiththefielddevelopmentplanto Parliamentforratificationin accordancewithArticle7loftheConstitution.
• 26.Section31(2)of thePetroleumAct provides thatParliament shall,within sixty days after receipt of the production sharing contract and the field developmentplan:(a)ratify the production sharing contract and thefield development plan andrefer the documents back to theCabinetSecretaryforreconsideration statingthereasonsfor therefusal.
• 27.Section 31(3)of the Petroleum Act provides that Parliament shall undertake public participationin theprocessofratifyingorrefusingtoratifytheproductionsharing contract andthefielddevelopmentplan.
• 28.Section31(4) of thePetroleum Act provides that the Cabinet Secretary shall,upon refusal, consider thereasonsandreservationson theirmerits andresubmit thesametoParliament forapproval.
• 29.Section31(5)of thePetroleumActprovides that if Parliament doesnot makea decision to ratify ortorefuse toratifywithinninety days,theproduction sharingcontract and thefield developmentplanshallbedeemed tohavebeenratified.

2.4EnergyAct(Cap.314)

• 30.Section10(h)of the EnergyAct,Cap.314,provides the one ofthefunctions oftheEnergy andPetroleumRegulatoryAuthorityisto include assessingfielddevelopmentplansand makingrecommendations to theCabinetSecretaryresponsiblefor mattersrelating to petroleumforapproval,amendmentorrejectionoftheplans.

2.5Reguiations

• 31.Section 126 of thePetrolcum Act provides that the Cabinet Secretary may makeregulations for or with respect to any matter that by the Petroleum Act requires or permits to be prescribed,or that is necessary or expedient to beprescribed for carrying out or giving effecttothePetroleumAct.
• productionsharingcontractsorfielddevelopmentplansunderthePetroleumAct,Cap.308.

2.6ProductionSharingContracts

• 33.One Production Sharing Contract (PSC)was entered into between the government and Turkana Drilling Consortium (Kenya)Limited on the 25th October 2007,while the PSC between the government and the Platform Resources Incwas entered into on the 17th September2008.
• 34.An analysis of the production sharing contracts,the addenda to the production sharing contracts and thefield developmentplandisclosethemattersoutlined inparagraphs16,17, 18,and,19.

• 35.On25th October2007TurkanaDrilling Consortium(Kenya)signedaProductionSharing Contract(PsC)fora100%workinginterestinnewlydesignatedBlock10BB.
• 36.On17thSeptember2008PlatformResourcesInc.signedaPSCfora100%workinginterest innewlydesignatedBlock13T.In2009AfricaOilTurkanaLtd(awhollyownedsubsidiary ofAfrica Oil Corporation)acquired Turkana DrillingConsortium.In 2010Africa Oil KenyaB.V.acquiredPlatform Resources Inc.givingAfrica Oil a100% interest in both Blocks10BBand13T.On26thJanuary2011TullowKenyaB.V.completeda farm-in to Blocks10BBand13Tacquiringa50%interestandOperatorshipofbothblocks.
• 37.On1sMarch2016AfricaOilfarmeddownafurther25%of theirremainingequityin Blocks13Tand10BBtoMaerskOilandGas.
• 38.On21stAugust2017Total S.A.acquired100%ofMaerskOilandGasthus acquiring all Maersk Oil and Gas participating interests in Block 10BB and Block 13T giving subsidiariesTotalE&PInternationalK2LTDandTotalE&PInternationalK3LTDa25% interestineachofthesaidBlock10BBandBlock13TPSCs,respectively.
• 39.On21stJuly,2025,TullowOverseasHoldingBV,awhollyownedsubsidiaryofTullow Oilplc(Tullow)and AuronEnergyE&PLimited,anaffiliateof GulfEnergyLimited (GEL),signed a sale and purchase agreement.for thepurchase of TullowKenya B.V. (TKBV).The transaction,which constitutes a corporate share transfer,involved the acquisition of 100%of TullowKenya BV,asa going concern,by Auron EnergyE&P Limited,an affiliate of GulfEnergyLimited,from its current parent company,Tullow OverseasHoldingsBVgivingthe subsidiaryGulfEnergyE&PBVa100%interestineach ofthesaidBlock10BBandBlock13TPSCs,respectively.GulfEnergyE&PBVholdsa 100%interestineachofthesaidBlock10BBandBlock13TPSCs.

2.6.1ClausesoftheContracts

• 40.Definitions and Interpretation:BothProduction Sharing Contracts (PSCs) have detailed definitions and interpretation provisions,which are legallydeterminative for the constructionofthe Contract.These clausesprescribe legaland definitivemeaningof both technical andgeneral terms usedinthe contracts,whileensuring thatambiguity isresolved withintheContractratherthanbyexternalimplicationorunilateraladministrative action.
• 41.TermoftheContracts:BothProductionSharingContracts(PSCs)haveadefinitiveterm of three(3)contractyearsfrom theeffective date ofexecutionofeach contract.The term continuationofthecontractdependsoncompliancewithobligations andapprovalofaField DevelopmentPlan.
• 42.The Production Sharing Contracts (PsCs):Grant both parties exclusive rights to explore,develop,produce anddisposeofpetroleumwithinthedefined ContractArea.This grantdoesnotconstitutea transferofownershipofpetroleuminsitu,whichremainsvested in theState,butrathera conditional contractual licence.The exclusivityclause legally restrains the Governmentfromgranting overlappingrights to thirdpartieswithin the ContractAreaduringthesubsistenceoftheProductionSharingContracts(PsCs).
• 43.ContractAreaandRelinquishment:TheProductionSharing Contracts(PSCs)legally defines thegeographic scope ofoperations andimposesmandatoryrelinquishment obligations on theparties at the conclusion of defined explorationphases.These clauses protect theState against speculative acreage hoarding and ensureprogressivereversion of

non-prospective areas to the Government.Non-complianceconstitutes a materialbreach capableofenforcementortermination.

• 44.ExplorationPeriods andWork Obligations:TheProduction Sharing Contracts(PSCs) are structured into an Initial Exploration Period and optionalextension periods,each accompanied by detailedminimumworkandexpenditure obligations.Theseprovisions are legally enforceableperformanceundertakings,failure ofwhichexposesthe Contractor to forfeiture of rights orcarly termination.The clauses allocate explorationriskentirely to the Contractors,consistent withProduction Sharing Contracts(PsCs) doctrine.
• 45.Discovery,Appraisal andDeclaration of Commerciality:Upon discovery of petroleum, the Contractors are obligatcd tonotify theGovernment andundertake appraisal operations. The legal threshold for a"Commercial Discovery"is expressly defined,and the declaration thercof triggers further obligations,including submission of a Field Development Plan (FDP).According to the Production Sharing Contracts(PSCs),Government approval of commercialityisaconditionprecedenttodevelopmentrights.
• 46.Development and Production:Development and production activities may only commence followingapproval of theFDPby the Government.These clausespreserve regulatory control and ensure alignment with national development,safety,and the approvedDevelopmentAreas.
• 47.Conduct of Petroleum Operations:The Contractors are legally bound to conduct operationsin accordance with Good International PetroleumIndustryPractice,applicable Kenyan laws,andprudent operational standards.Thisclause imports an objective standard of care enforceable,notwithstanding the Contractor's internal practices or cost considerations.This is covered in details in theProduction Sharing Contracts(PSCs).
• 48.Cost Recovery (Cost Oil):The Production Sharing Contracts (PSCs)establish a cost recoveryregimepermittingtheContractorstorecover approvedpetroleum costsfrom a capped portionof production.These costs arereasonable,necessary,and properly audited Contracts(PsCs)and afrequentsourceofState-Contractordisputes.
• 49.Production Sharing (Profit Oil): According to the Production Sharing Contracts (PSCs), after cost recovery,remaining production is shared between the Government and the Contractor according to an agreed formula.Title to petroleum passes only at the point of allocation.This clause operationalisesState benefit from petroleum exploitation and underpins Governmentrevenue expectationsfrom the explorations.
• 50.Measurement,Valuation andLifting:These clausesregulatemetering,valuation,lifting procedures andscheduling.They are legally significant as theyaffectrevenue calculation, taxation,and audit rights.Errors or manipulation at this stage have direct fiscal consequencesfortheState.
• 51.Taxation and FiscalStabilisation:ThePSCspecifies applicable taxes andfiscal treatment ofthe Contractor,including income tax obligations and any exemptionsor stabilisation assurances.Further,each party shall beresponsible for and shall payits own taxes to the Kenyan authoritieson its operations.These provisions limit the Government's ability to unilaterally alterthefiscalburdenwithoutbreachingcontract,subjecttoconstitutionaland statutoryconstraints:

• 52.EnvironmentalProtection:The Contractorsunder theProductionSharing Contracts remediation.Liabilityforenvironmental damageisnot excusedbyGovernmentapproval orregulatory compliance.These clauses align theProduction Sharing Contracts(PsCs) with environmental lawprinciples,including thepolluter-pays doctrine.
• 53.Local Contentand Training:The Production Sharing Contracts(PSCs)obligate the Contractorswherepossibletotrain andemployKenyancitizensinthepetroleumoperations until the expiryor termination of the contracts.The training programme shall beestablished in consultationwith theCabinetSecretary.Further,thecontractorsarerequired togive preference toKenyan materials and suppliesand sub-contractors,foruseinpetroleum operations aslong astheirprices,qualities andtimelinessofdelivery are comparablewith prices,qualities,quantities ofnon-Kenyanmaterials.These clauses arelegallyenforceable policyinstruments aimedatdomesticcapacitybuilding enforcedasper theprovisionsof section11ofthePetroleumAct,whichgivestheCSpowerstoenforceanydirectionunder theActandtheregulationsthereto.
• 54.DataOwnershipand Confidentiality:AccordingtotheProductionSharing Contracts (PSCs),allpetroleumdatageneratedunder the Contractisownedbythe Government, subject to confidentialityperiods.However,the contractorsmay remove,forpurposes of laboratory examination or analysis,specimens or samples of petroleum or water encounteredinaborehole,butnospecimen shallbeexportedfromKenyawithoutprior notificationto theCabinetSecretary.This clausesafeguardsStatesovereignty over geological information andfuture licensing leverage.
• Sharing Contracts (PSCs) to an affiliate or an acceptable assignee requires prior Governmentconsentwhichconsentshallnotbeunnecessarilywithheld.Incaseofmaterial changestothecorporatestructure,ownership andfinancialpositionofthecontractors,the contractors shall report to the CabinetSecretary.Unauthorized transfers or assignment constituteamaterialbreach.ThisclausepreservesStatecontrolover theidentityand capabilityofpetroleumrightholderstherebysafeguardingtheinterestsoftheState.
• 56.Termination and Force Majeure:The Production Sharing Contracts(PSCs)sets out grounds for termination,including material.breach and prolonged force majeure. Termination does not extinguish accrued liabilities,including environmental and decommissioningobligationsunderthecontracts.
• 57.In caseof termination,theProductionSharing Contracts(PsCs)providefor groundsfor the same and theremedies availableto eachparty.
• 58.Decommissioning and Abandonment:Upon expiry or termination,the Contractoris obligated tosafelyabandonoperationsandrestore theContractArea.Theseobligations surviveterminationandmayrequirefinancialsecurity.
• 59.GoverningLawandDisputeResolution:TheProductionSharingContracts(PSCs)are governedbyKenyan laws,with disputes typicallyreferred to International Arbitration accordingtotherulesadoptedbytheUnitedNationsCommissiononInternational Trade Law(UNCITRAL).The arbitration shall takeplace in Nairobi,Kenya and shall be in English.
• 60.This clause balancesState sovereigntywithinvestor confidence and enforceabilityof awards.

2.6.2Addenda

• 61.Legal Status of theProductionSharingContracts:TheProduction Sharing Contracts (PSCs)arepetroleum agreementslawfully enteredintobetween theGovernmentofthe RepublicofKenyaandprivatecontractorspursuanttothePetroleumActof1984and the regulationsinforce at the time ofexecution.UnderKenyanlaws,ownershipofpetroleum insitu remains vested in the State,and theProduction Sharing Contracts(PsCs)merely grant the contractor a contractual licence to explore,develop,and produce petroleum, subjecttostrictStatecontrol andoversight.
• 62.The Petroleum Act, Cap.308 expresslyrecognizes and preserves petroleum agreements entered into under repealed legislation.Accordingly,theProduction Sharing Contracts (PSCs)forBlocksT6 and T7remainvalid andenforceable,and theirrights andobligations areprotectedunder the transitionalandsavingsprovisions oftheAct.
• 63.Block Reconstitution and Statutory Alignment:Originally,the Production Sharing Contracts(PSCs)relatedtoBlock10BBandBlock13T.Followinganationalreconstitution ofpetroleumblocksbytheCabinetSecretary throughGazetteNoticeNo.4832of16tApril 2025,theblockswereredesignated asBlock10BB→BlockT6andBlock13T→Block T7.
• 64.The First Addendum amend the Production Sharing Contracts (PSCs) to replace all references to theformerblocknameswiththenewstatutorydesignations.This amendment is administrative and correctivein nature,ensuring conformity with section 15of the Petroleum Act,which mandates formal gazettement and definition ofpetroleum blocks. There isno substantive alterationof the contract areas,andParliament may note that the Addendamerelyalignthecontractswiththecurrentstatutoryblockframework.
• 65.Governance andInstitutional Consistency:The original Production Sharing Contracts (PSCs)refer to the"Minister"and the"Ministry of Energy,"reflecting the pre-2010 constitutional order.TheFirstAddendum amends theinterpretationclauses to substitute these references with "Cabinet Secretary"and "Ministry responsible for Petroleum", consistentwiththeConstitutionofKenya(2010) andsections10 and 11ofthePetroleum Act.
• 66.This amendment is lcgally necessary and cures a potential inconsistency that could otherwise undermine the enforceability of approvals,consents,and directives issued under administrativelegalityandaccountability.
• 67.Exploration,Development,and Field Development Plan (FDP):The Production Sharing Contracts(PsCs)impose obligations on the contractor to conduct exploration within definedperiodsmeetminimum work and expenditure commitments;relinquish portions of the contract area over time;and,submit aField Development Plan(FDP)upon acommercial discovery.
• 68.Under section31of thePetroleumAct,anapproved FDPmust be submitted toParliament for ratification before commercial production may commence.The First Addendum expressly acknowledges that theFDP has been approvedby the CabinetSecretary;and be forwardedtoParliamentforratification.
• 69.Thisis a criticallegal safeguard.Parliament'sratification isnot a formalitybut a mandatory statutoryconditionforlawfulpetroleumproductionasprovidedforunderArticle71ofthe

Constitution.Parliament thereforeretainsfullauthoritytoapprove,reject,orcondition the FDPinthenationalinterest.

• 70.Cost Recovery(Cost Oil)-Revenue Implications:One of the most significant amendmentsintroducedbytheFirstAddendaconcernscostrecovery.TheAddendum increasesthemaximumcostrecoverylimitfrom55%and65%to85%oftotalannualcrude oilproduction.
• 71.While thePetroleumActdoesnot prescribe anumerical ceilingforcostrecovery,itrequires thatpetroleumresourcesbemanagedequitablyandforthebenefitofthepeopleofKenya. An85%costrecoveryceilingmeans that,in the earlyyearsofproduction,only15%of production may be available for sharing asprofit oil,thereby delaying substantial governmentrevenue.
• 72.Profit Oil SharingStructure:After costrecovery,remainingproductionisclassified as profitoilandsharedbetweentheGovernmentandthecontractoronaslidingscalelinked toproductionvolumes.Therevised structureprogressivelyincreases the Government's share,reachingupto75%athigherproductionlevels.
• 73.This structure is broadly consistent with international PsCpractice and satisfies the Petroleum Act'srequirementfor equitable sharing.However,theeffectiveness of this provision isdirectly dependent onaccurateproduction measurement;strict controlof recoverablecosts;and,fiscalincentives andtaxexemptions
• 74.The First Addendaintroduce extensive fiscal incentivesin favour of the contractor, including exemptions from value added tax(VAT)on petroleum operations;railway developmentlevy andimportdeclarationfees;and,withholding tax on services andloan interest.
• 75.Whilefiscalincentives arepermittedunderpetroleumagreements,Parliamentshouldnote that taxation isprimarilygoverned by national tax laws.Therefore,broadcontractual tax exemptionsmayreducefuturefiscalflexibility;createtensionswithFinanceActsenacted by Parliament;and,raise equity concerns when compared with other sectors of the economy.
• 76.Assignments,Changesof Control,andStateApproval:TheProduction Sharing Contracts (PSCs)have undergone multiple assignments and changes of control involving various corporateentities.TheAddendadocumentsthatthesechangeswereapprovedbythe Government.Under section 26of thePetroleumAct,any transfer orassignmentofa participatinginterest requires CabinetSecretary approval.Based on the Addenda,the proceduralrequirementsappear tohave been observed.Parliamentmaynevertheless requestconfirmation that allapprovalswereproperlyissued;and,theState'sinterestswere protectedduringeachtransaction.
• 77.Crude Oil Transportation and Marketing:The Addenda amend the lifting and transportationclausestoallowthecontractor totransportallcrudeoil,including the Government'sshare,formarketingonagreedterms.
• 78.Whilecontractuallypermissible,Parliamentshouldnote thatthePetroleumActrequires State oversightoverproduction and disposalofpetroleum;and,the absence ofdetailed statutory delivery point controls may expose the State to pricing,accounting,or transparencyrisks.

• 79.Comparatively,Kenya's Local Content Plan surpasses regional benchmarks by integrating enforceiment andreporting,asin Ghana's successfulfabricationgrowth.It positions the project as a catalystforregional industrializationbeyondNairobi andMombasa,akin to oil-driven hubs in Aberdeen,Scotland,orStavanger,Norway.

CHAPTERTHREE ANALYSISOFTHEFDPANDPSC

3.0THEFIELDDEVELOPMENTPLANANDPRODUCTIONSHARING CONTRACTSFORBLOCKST6ANDT7INSOUTHLOKICHAR,TURKANA COUNTY

3.1ANALYSISOFTHEFIELDDEVELOPMENTPLAN

3.1.1Overview

• 80.A Field DevelopmentPlan(FDP) is theprimary technical,economic,environmental and socialblueprintbyapetroleumoperator,settingouthowadiscoveredoilfieldwill be developed,produced,transportedandultimatelydecommissioned.Itdefinesthescale,cost productionprofile,infrastructurerequirements,environmental andsocialimpacts andrisk allocation of the project and forms the basisupon which government approvals,fiscal outcomes and long-term national obligations are determined.The FDP indicates the petroleumoperatorasGulfEnergyE&PB.V.
• 81.Section30(3)ofthePetroleumAct,Cap.308providesthat theFDPshallbesubmittedby thecontractor toEPRA forreviewinaccordancewith thepetroleumagreement.The Authorityshall thenadvisetheCabinetSecretarybefore approvaloftheFieldDevelopment Plan.Once approved by the CabinetSecretary,theFDPis thensubmitted toParliament for Ratification.

3.1.2Background and Evolutionof theProduct Sharing Contracts of the SouthLokicharOilBasin

• 82.Oil explorationinKenya'sSouthLokicharBasinbeganin the1950swith earlyefforts by Shell and BP,though no commercial discoveries were made until the2010s.A major breakthroughoccurredin2012whenTullowOil'sNgamia-1well confirmedcommercially viable oil,marking Kenya's first significant upstream oil discovery and laying the foundationforProjectOil Kenya.Accordingtothepastparliamentary submissions,initial recoverableresourceswereestimatedat560-585millionbarrelsacrossmultipletertiaryagereservoirsandwerelaterreviseddownwardtoapproximately326millionbarrels followingfurther appraisal,whichisamaterialreduction thathasdirectimplicationsfor projectviability,development scale and infrastructureplanning.
• 83.Accordingto theFDPandpastparliamentarysubmissions,themodernexplorationphase commenced with the signing of Production Sharing Contracts (Production Sharing Contracts(PSCs)forBlock10BBin October2007byTurkanaDrilling Consortiumand forBlock13TinSeptember2008byPlatformResourcesInc.AfricaOil Corporation consolidatedcontrolofbothblocksbetween2009and2010throughtheacquisitionofthe two companies,enabling a coordinated exploration strategy.In January 201l,Tullow Kenya B.V.acquired a 50%interest (participationand operatorship),accelerating exploration andleadingtomultiplediscoveriesacrossthebasin.
• 84.Tofacilitateintegratedevaluationofthediscoveries,thecontractorssoughtandobtained approvalinFebruary2013toestablish anArea of Interest(AOl) spanningpartsof Blocks 10BBand13T.
• 85.Ajointventureevolvedin2016withMaerskOil'sentrythrougha25%farm-in (acquisition),later assumed by Total Energies followingits acquisitionof Maersk Oil in 2017.ThepartnershipoversawtheimplementationofKenya'sfirstoil exportunder the EarlyOilPilotScheme(EOPS)between2018and2020,producinglimitedvolumesof

approximately200,000barrelsin2019.TheEOPSutilizedroadtransporttohaulthecrude from theoilwellstoMombasa.

• 86.InDecember 2021,the joint venture(Tullow Oil as operator,with Africa Oil and Total Energies) submitted its firstField DevelopmentPlan(FDP) to the Government of Kenya, signalingthedevelopment oftheoilfieldstowardsfull commercialization.However,Total Energies and Africa Oil exited the project in May2023,delaying theroadmap towards commercialization followingan updatedFDPsubmissioninMarch2023,leavingTullow Oil as the sole owner and operator,thereby increasing both control and financing risk, hence heightening the need for a strategic partner amidst financing and regulatory challenges.
• 87.Following concernsraisedbystakeholders,includingParliament on delayofFDPandlack of commitment,there was necd for Ministry of Energy and Petroleum (MOEP)and the contractor tofinalize theFDP.In thatregard,inApril 2025,Tullow agreed heads of terms for the sale ofitsKenyan assets,culminatingin asale andpurchase agreementinJuly2025 withAuron EnergyE&P Limited,an affiliate of Gulf Energy Limited.The transaction closed in September 2025,transferring100% interest in Blocks10BBand13T to Gulf EnergyE&PB.V.ByDecember2025,Gulf Energyheld full ownership(with the blocks potentiallyredesignated asT6 and T7),and itsrevisedFDPwas approved by theparent MinistryinNovember2025andsubsequently submittedtoParliamentforratification.

3.1.3Analysis of Production Forecasting,Reserves,and SurfaceFacilities

• 88.According to theFDP,thereis evidence ofutilizingproductionforecasting toolsinrelation to theplannedexplorationforBlocks13Tand10BB.
• 89.Production and associated drilling are expected to begin in 2026 utilizing Amosing and Ngamia,with Phase 2drilling expected tobeginin 2031 andcontinue tomaintain the 50,000 stb/dplateau as showninfigure1below:

Figure1:Phase1andPlase2drillingschedule

• 90.Onsurfacefacilities,GulfEnergyhas adoptedaphased development strategyto accelerate commercialization and achieveFirstOil in theshortestpossibletime.Theapproachbegins withanEarlyProductionPhase(Phase 1)and transitionsintoa full-field development infrastructureisconstructed.
• 91.Phase 1will deploy twoleased/rentedEarlyProductionFacilities(EPFs),each witha capacityofapproximately10,000barrelsofoilerday,resultinginacombinedoutputof 20,000barrels per day over an initial five-yearperiod.This phase islargely operating expenditure driven,reducingupfrontcapital requirements.TheEPFsare designed to handle associatedproducedwater,limitedgasvolumesforon-sitepowergenerationwitha diesel generatorbeing considered for black start-up,and operational water requirements,with appropriate treatment anddisposal systemsin place.
• 92.ProductionduringPhase1will besupportedbyaccelerateddrillingfromexistingandnew wellpadswithinBlock10BB,utilizing24oilproductionwellsand a similarnumber of waterinjectionwells tomaintainreservoir pressure.Producedoilwill be stored inheated andinsulated tankswithacapacityequivalentto approximatelythreedaysofproduction,
• 93.Phase 2will commence after theinitial five-yearperiod andwill scaleproductionup to approximately50,oo0 barrelsper day,anchored by theconstructionofa Central Processing Facility(CPF)in the NgamiaField.The CPFwill centralize.processing,utilities,storage, waste management, and logistics,improving operational efficiency and reducing unit operating costs.Itwill be designed tomanage significantlyhighervolumes ofproduced networkofflowlineslinkingsurroundingwell pads.

94. Gasmanagement and power supply have been designed to minimize routine flaring and enhance energyreliability.Associated gaswill beused primarily for on-sitepower generation,with surplusgasreinjected into the reservoir.Powerwill be supplemented by gridconnections,sincePhase1EPFfacilities areconceptuallydesigned toconsume4MW perfacility,whichtranslatesinto8MWforbothEPFfacilities,whilethePhase2Central ProcessingFacility(CPF)isexpected tohave apeakpower demandof34MW.Therefore, arisingfromthis,alocalsubstationcontaininga220kV/33kVstepdowntransformerwill be constructed byKETRACO,local to theCentralFacilitiesArea(CFA),aspartofthe Turkwel toLokichogio transmissionline expansionproject,whileflowassurancemeasures will ensurecrudeoil temperatures aremaintained above thewaxappearance temperature topreventblockages andmaintainuninterruptedoperations.

• 95.Figure2provides acombinedproductionforecastforall fieldscomprisinggas,water,and oilforecasts.

Figure2:CombinedProductionForecastforOil,GasandWater

TableI:1C,2Cand3CFullBasinSTOIIPandContingentResources

| Field/ Discovery | Reservoir | GrossSTOlIP(MMstb) | GrossSTOlIP(MMstb) | GrossSTOlIP(MMstb) | GrossLifeofField Resources(MMstb) | GrossLifeofField Resources(MMstb) | GrossLifeofField Resources(MMstb) | Best Estimate Resources toEndof Licence (MMstb) | |--------------------|-------------|----------------------|----------------------|----------------------|-------------------------------------|-------------------------------------|-------------------------------------|---------------------------------------------------| | Field/ Discovery | Reservoir | Low | Best | High | Low | Mid | Hig h | 2C | | Amosing | Auwerwer | 186. 0 | 252.0 | 394.0 | 46.4 | 71. 9 | 114. 1 | 54.3 | | Ngamia | Auwerwer | 459. 0 | 680.0 | 984.0 | 103.9 | 161 .9 | 262. 2 | 134.1 | | Twiga | Auwerwer | 59.0 | 87.0 | 170.0 | 8.3 | 18. 3 | 41.7 | 12.6 | | Ekales | Auwerwer | 15.0 | 49.0 | 164.0 | 2.3 | 8.5 | 32.0 | 8.5 | | Agete | Auwerwer | 125. 0 | 212.0 | 362.0 | 17.1 | 36. 8 | 79.1 | 36.5 | | Etom | Auwerwer | 51.0 | 75.0 | 112.0 | 9.8 | 18. 5 | 34.7 | 16.5 | | Etom- Emekuya | Lokone | 173. 0 | 327.0 | 598.0 | 36.0 | 80. 0 | 173. 2 | 63.4 | | | | 1,06 8.0 | 1,682 .0 | 2,784.0 | 223.8 | 395 .9 | 737. 0 | 325.9 |

3.1.4Schedule and CostProfilesofTheProjectOilKenya

97.If theFDPis approved byParliament,Phase1first oilisplanned forDecember2026(fourth quarter of2026),facilitatedbytheuse ofexistingwells,pads,andrentalinfrastructure supported by drilling insections of Amosing and Ngamia.

• 98.ThePhase1projectenvisagesaninitial 21-monthdrillingprogrammetoconstruct43new wells and to reinstate5existingwellsinAmosing andNgamia,whilePhase 2isplanned
• additionalwellsinAmosingandNgamia,followed byTwiga,Ekales,Agete,andEtom o maintainandextendthe50,oo0barrelsofoilperdayplateau.Thissecondprogramme involvesdrillingandcompleting862wellshencea totalof910wellswillbedrilledand completedacrossthetwophases.
• 99.On theExploration andAppraisalaspect,it isimportant tonote thatoutof thetargeted25 exploration and appraisal wells,8(inNgamiaFANorth,NgamiaNFA NW,AmosingFA North,AmosingNFA South,AmosingFan,LoparaNorth,Lopara,and Etete)areproposed tobeprioritized.Theeighthigh-grade drillingwells targeted areplannedtobe drilled sequentiallyover thecourseofapproximatelyeightyears,commencingin2032atan estimatedaveragecostof$8-9millionperwell.

100. Toenable immediate project execution followingaFinal InvestmentDecision(FID) and meet the Phase 1 schedule,several preparatory activities must be initiated and completed as soon as possible.These include securing land access and water rights, finalizing commercial agreements,contracting and arranging project financing.In parallel, earlytechnical works suchaswaterpipeline tendering,detailed design,procurement and initial construction will commence.Enabling works,including access roads,temporary camps,sitepreparationandinfieldinfrastructure,will alsobeundertaken.Permitting,Front concurrentlytoallowearlyprocurementoflong-leaditemsessentialtomaintainingthe Phase1andPhase2development timelines,as containedinfigure3below:

• 101.Regardingthedevelopmentactivities,overallprojectcostsareestimated atUs$263.9 million(Approx.Kshs.34.04billion).This then increases significantly toUS $5,452.6 million(Approx.Kshs.703.38billion) inPhase II,indicating that a significant portion of the developmentresourcesisprojected tobeunlockedin the subsequentphase.Notably, firstoilcargoisplannedforexportinQ1of2027,withthebreakdownoftheupstream CAPEX,includingExploration andAppraisal,outlinedin table 2:

Figure3:Provisionalintegratedprojectschedule

Table2:UpstreamCAPEX

*Note:Decommissioning costs amount toS331.8million and exclude intercstofS11.2MM,whichmakes up theremainderof the totalcost andhasbeencalculatedseparatelyfromthetotalupstreamcapex cost

| CAPEX(SM) | PhaseI | PhaseII | Total | |--------------------------|----------|-----------|---------| | Surface Facilities | 36.8 | 430.8 | 467.6 | | Drillingand Completions | 215.8 | 5,021.8 | 5,237.6 | | Project OwnersCosts | 11.3 | | 11.3 | | Project Total | 263.9 | 5,452.6 | 5,716.5 | | *Decommissioning* | | | 343.0 | | Exploration andAppraisal | 7.5 | 70.5 | 77.5 | | Totalupstrcam capex | 271.4 | 5,522.6 | 5,794.0 |

102. Additionally,there is heavyconcentrationofproject costs in drillingand completion activities,whichrepresent approximately80%ofCAPEXinPhase1andincreasetoabout 90%inPhase 2.Given that theseactivities dominate overall projectexpenditure and that the drilling andcompletioncosts are largely assumed toberecoverableunderthePsC,even relativelysmalldeviationsfromplannedwellcostsordrillingtimelinescouldsignificantly affect the pace at which the contractor recovers costs and,consequently,the timing and share ofgovernment portion.Similarly,the current cstimatesrely on a combination of tender,vendor,andhistorical database information containing drilling and completion planswithout simulations,whichintroducespotential cost anddeliveryrisksif underlying assumptions change. 2. 103.A summaryofestimatedcosts todrill andcomplete theproposeddevelopment wellsis providedinTable3below,whichoutlines theproposedcostof drilling andcompletingone welltobeUSD 4.65million,translatingtoUSD4,231 million for theproposed total numberofwells(910intheFDP)inbothphases. 3. 104.On the other hand,the project's operating expenditure (OPEX),as detailed in Table4 below,is based on inputs from previousFEED contractors,well engineering estimates, historical costs incurred during the Exploration Phase,and internal in-house databases. While theseinputsprovideabasisfor estimation,theresulting OPEXestimatesindicates a significant escalationin Phase Two,with total OPEX estimate increasing from approximately USD1,014.3million(approx.Kshs.130.844billion) inPhase One toUSD 7,212.0 million (approx.Kshs.930.348 billion) in Phase Two,driven predominantly by

Table3:InitialCostestimatetodrillandcompleteproposeddevelopmentwells

| | 0 | RigDay Rate | BudgetaryQuote | |---------------------|------|-------------------------------------|------------------| | | | | HutytnyPtoposi | | | | | 10 | | | | | HRetow | | | 014 | | RudeeLryCuuto | | | | Sutv.Hse hgotrs.roghot | Hhxeigetar | | spvt&A | C.28 | RiSuprrvision.Els Spvioo.OG8A | Budgetary Qupte | | McdiietnobAnoratron | 0.11 | Rigand Setvices Mob/Oemobtor4:wells | Budgctary Quote |

Source:FDP

Tott WellCoit

4.65

midstreamcosts,particularlyoil truckingandrailtransportation,storageandhandling,and administrative andmonitoringexpenses.

Table4:ProjectOPEX

| UPSTREAMOPEX(SMM) | Phase1 | Phase2 | Totel | |-------------------------------------|----------|----------|---------| | Leaseof SurtaceFacilties,TDu &Water | 267.7 | 247.4 | 515.2 | | GEPersonnel (G&A) | 56.6 | 226.5 | 283.2 | | Camp Costs | 11.7 | 63,2 | 74.0 | | Consumables(Elec&Dlesel) | 14.9 | 171.8 | 186.6 | | Chernicals | 5.8 | 138.7 | 144.5 | | | 5.2 | 20.4 | 25.6 | | Vehicles | 5.3 | 73.5 | | | Support Services | 72.5 | 288.6 | 361.1 | | | 3.0 | 47.0 | 50.0 | | Upstream Total | 442.8 | 1,277.1 | | | MIDSTREAM OPEX(SMM) | Phase | Phase2 | Total | | Oll Trucking/Rait Transportation | 466.9 | 4,848.6 | 5,315.5 | | ExponCharges | 28.3 | 293.9 | 322.1 | | Storage&Haridling | 26.6 | 296.8 | 325.4 | | Adnin&tuoevitoning | 34.9 | 362.1 | 397.0 | | Product Loss | 8.6 | 89.0 | 97.0 | | Trucking Insursnce | 4.3 | 44.5 | 48.8 | | Midstream Totat | 571.5 | | 6,506.4 | | TotalOPEX | 1,014.3 | 7,212.0 | 8,226.4 |

3.1.5Commercial and EconomicAnalysisof theProject OilKenya

• 105.The Gulf FDP is anchored in anintegrated contractualframeworklinking the Government of Kenya,Gulf Energy E&P,and the GoK Nominee to govern the developmentandproductionofcrudeoil fromBlocks10BBand 13T.Theframeworkis centred on the Production Sharing Contracts and supported by enabling agreements covering field development approvals,land and water access, security,ESlA,joint marketing,harmonization,unitization,fiscal terms,participation,and jointoperating arrangements,which together define governance,cost recovery,and profit-sharing.It further establishes the pathway for crudeevacuationandcommercialization through transportation contracts,the KPRL crudeoil storage and handling agreement,export charges,andofftakeagreementsenabling themovement,storage,and saleofcrudeoil to internationalmarketsinlinewithregulatoryrequirementsandnationalinterestsassetout infigure4below:
• 106.Theproject crude is characterized asamedium-grade,paraffinic,sweet crude with an APIgravityofapproximately30.5°,whichiscommerciallymarketablebutnotpremium

Figure4:ContractualFramework

andis thereforepriced against theDated Brentbenchmark.For analyticalpurposes,a conservativeoilpriceofUsD60perbarrelhasbeenassumed,withnoallowancefor inflation or futureprice escalation.Reflecting the waxynature of the crude,a constant discount ofUSD3.5perbarrel toBrent has beenapplied,consistentwithoutcomesfrom theEarly Oil Pilot Scheme and prevailingmarketconditions.The economic analysis is basedon cash flows commencingon1s January2025 and assumes zero cost inflation over the project life to avoidoptimistic assumptions.

• 107.The evaluation further assumes that the Government ofKenya,through itsnominee National Oil Corporation (NOC),holds a 20% participating interest across the unitized devclopment area,reflecting existing interests in Blocks 10BB and 13T.In addition,the contractorhasindicated that,giventhecurrentcostenvironmentandcapitalrequirements, whilemaintainingtheoverall fiscalframeworksetoutintheProductionSharingContracts (PSCs).
• 108.The indicated fiscal terms and conditions forthe Unitized LokicharAreapoints to substantial concessions/tax expenditures beinggranted incomparison to the current10BB various taxexemptions(VAT,withholding tax,RDLandIDFlevies)whichmightimpact taxyieldsaccruingfrom these arrangements.Additionally,the Contractor shallrecover costsincurredinrelation tooperationsfromcostrecoverycrude oil asfollows:production costs,development costs,exploration and appraisal costs,and decommissioning costs in theorderthatshall be agreedby theparties.

109. On theother hand,the CapexandProduction are asshowninfigure5,indicating capital ramp-upofproduction.Output startsin2026andreachesitspeakataround50,000barrels per daybetween2033and2037,beforegradually declining through2050,whichmeans governmentrevenueswill similarly declineintheproject'slatteryears.Thispatternreflects a typical oil field lifecycle:substantialearly spending to build infrastructure and drilling

Table5:CurrentandAdjustedFiscalTerms

Source:FDP

capacity,followedbyaproductionplateau andeventual decline.Thealignmentofpeak Capex,with theachievementof50,0o0barrelsperday,underscoresthescaleofinvestment required to sustain even a moderate production ceiling.

Figure5:CapexandProductionChart

110.TheFDPindicates the project cash flowfor the initial 15years,as indicated in table 6 below:

Table6:ForecastFreecashflowsover theinitial15years

| Year | Revenu es (USDM M) | Transp ort Costs (USDM M | Revenues Net of Transport Costs (USDMIM) | Opex (USDM M) | Capex (USDM M) | Fees& Levies (USDM M) | Govt Share of Profit Oil (USDMM | Contracto rGroup NetCF (USDMM) | |--------|----------------------|----------------------------|--------------------------------------------|-----------------|------------------|-------------------------|-----------------------------------|----------------------------------| | 2025 | | 1 | | | | | | | | 2026 | 16.4 | 1 | 1.8 | -3.7 | -112.9 | -0.6 | -0.4 | -115.8 | | 2027 | 228.1 | 80.7 | 147.4 | -87.3 | -119.5 | -1.1 | -36.5 | -96.9 | | 2028 | 385.8 | 136.6 | 249.2 | -88 | -28.7 | -1.1 | -61.7 | 69.8 | | 2029 | 384.3 | 136 | 248.3 | -88.1 | -4.8 | -1.1 | -61.4 | 92.8 | | 2030 | 322.4 | 114.1 | 208.3 | -88.2 | -5.5 | -1.1 | -51.5 | 61.9 | | 2031 | 292.5 | 103.6 | 189 | -88.6 | -534.9 | -1.1 | -46.8 | -482.3 | | 2032 | 940.1 | 332.8 | 607.3 | -59.3 | -369.1 | -1.1 | -151 | 26.8 | | 2033 | 1,031.10 | 365 | 666.1 | -60.7 | -379.3 | -1.1 | -166.5 | 58.5 | | 2034 | 1,031.10 | 365 | 666.1 | -61.7 | -350.7 | -1.1 | -166.5 | 86.1 | | 2035 | 1,031.10 | 365 | 666.1 | -62.2 | -173.5 | -1.3 | -159.8 | 260.9 | | 2036 | 1,034.00 | 366 | 668 | -62.8 | -144.9 | -1.3 | -155.2 | 295.3 | | 2037 | 1,024.30 | 362.6 | 661.7 | -64.6 | -230 | -1.3 | -153.6 | 203.8 | | 2038 | 1,012.00 | 358.2 | 653.8 | -65.5 | -409.1 | -1.3 | -143.8 | 25.7 | | 2039 | 989.1 | 350.1 | 638.9 | -65.7 | -414 | -1.3 | -134.1 | 15.6 | | 2040 | 972.1 | 344.1 | 628 | -66.3 | -431.1 | -1.3 | -128.1 | -7.1 | | Total | 10,694.4 0 | 3,780.80 | 6,900.00 | 1,012.60 | 3,707.90 | -16.9 | -1,616.90 | 495 |

• 11l. The revenue split analysisbetween the Government of Kenya(GoK) and Gulf Energy Limited(GEL)reveals GulfEnergyLimited experiences negative cashflows during the development phase:-$94.0 million (2026),-$57.0million(2027),and a huge -$362.0

break-even around2028($91.0million)and sustainedprofitability from2032onwards, withpeakannualreturns concentrated ina narrowwindow:$103.1 million(2032), escalatingto$351.4-$390.3millionduring2035-2036,thenmoderatingto$86-293million through2037-2040.

112. The tailyears(2044-2050) showremarkableresilience withcashflows of$152-222 million annually despite declining production,suggesting either dramatically reduced operatingcostsonceinfrastructureisamortizedorpotentialmodelingoptimism.Overthe entireproject life,GELaccumulates totalnetcash flows of $2,673.0million against cumulativegovernment revenuesof $1,047.2million,representinga72:28split infavorof the contractor on net project cashflow,which isa ratio that appears fundamentally misalignedwithProductionSharingContractprinciplesspecifying50%-75%government profit oil shares.

Figure6:GulfEnergy/GovernmentofKenyaSplitofRevenues

3.1.6Analysis of the MidstreamProject

113. The midstream component of theFDPis akey determinantof thecommercialviability oftheproject,asitdetermineswhetherproducedoil canbereliabiytransported,storedand exported.Notably,truckingcosts accountsfor substantive costs oftheproject OPEX. 2. 114.Additionally,on the evaluation of the feasibility of a refinery,an IHS Kenya PreFeasibilityStudyfoundthata70,000stb/dRFCCoilrefineryatLokichar,wouldcostover USD 2.0 billion,but will face greater challenges in securingfinancing and reaching FID due tohighercapital costs,and difficult macroeconomic conditions in the oil andgassector while anexport pipelinecostisestimatedatUsD1.5billion. 115. Further,while truckingreducesupfrontcapitalrequirements,providesfirst andlastmile advantagesand lowers thethresholdfor achievingfirst oil,theprojectmay experience logistical challenges and high per-barrel transportation costs,which are part of the estimatedOPEX.Astudyby theFraserInstitutenotesthat transportingcrudeoilby trucks can cost aroundUsD20per barrel,approximatelyfour times the cost of transportingthe disadvantageofroadevacuation.

• 116.During Phase 1,the project proposes to rely primarily on road trucking (using insulated roadtankers)totransportcrudeoil fromLokichartotheKPRLfacilityinMombasafor storageandhandling,adistanceofapproximately1,100kmbeforeitisexportedthrough thePortofMombasa.
• 117.Table7belowprovidesthecurrentusableroadroute withover75%onNational highwayclassAroadsunderKeNHA.

118. TheFDP alsoprovidesforotherroadroutes to enhance optimality although they may requirerepairs,upgrades,andcompletionofongoing ones.Theroutesinclude thepreferred routeforroadcovering975kmfromthewellpadstoKPRLMombasa,whichis65%and 35%on classA and B/Croads,respectively,and will require improvement/upgrade of about176kmstretch,while therecommendedroute avoidsmajortowns andjunctionssuch asKitale,Eldoret,andMauSummit.Therecommended routewill alsorequire theupgrade oftheC46road,approximately25kmfromAmosingtoLokicharfromaclass Croad toa classAroad,completion of constructionworkof Chemelingot toLomut(c.94km),and constructionofa tarmacroadfromMarichPasstoLomut(c.25km).

• 119.At peak,approximately100 tankerswill be loaded daily to transport 20,000barrels of oilperdaytoKPRLMombasaforexportstorage.Thefleetwill consistofapproximately 600trucks,basedon asix-dayround tripinphase 1.Atfullproduction,itisexpected that atleast onevessel will be exportedpermonth,totaling600,000barrels inphase1.

120. Phase2envisagestheuseoftherail networkforevacuation,whichcouldimprovecost efficiencyandreduceenvironmentalandroadsafetyrisks.

• 121.Accordingtothe FDP,GoKwill evaluate variousalternatives for railnetwork transportationwith anoptionto constructametergaugelinefromLokicharandconnect it tothe main MGR line at Kitale,Eldoret,Nakuru,Nyahururu,Nanyuki,or any other location,and anotheroptiontoextendtheSGRlinetoLokicharandconnecttotheproposed extensionoftheSGRlinefromNaivasha toLokichar.Studies areenvisaged tobecarried outtoestablishtheoptimalrailwaysolution.
• 122.Inphase2and to supportincreasingproduction of50,000 stb/d,GoKwill be required toprovide a railwaylineinLokichar,Turkana by thesecond halfof2030.At this rate, approximately155insulated andsteam-heatedcrudewagonswillbeloadeddaily and transportedtoKPRLMombasaforoffloadingandstoragewithatleasttwovesselsper month,totaling about1,500,000barrels anticipated tobeexportedinphase2.
• 123.For storage,the project requires a total storage volume of approximately 900,000 barrelstosupportexportparcelsof approximately600,000barrelsviaKOT2atMombasa Portpermonth,and theprojectplanstousetheexistingstorage tanksattheKPRLfacility.

Table7:Currentusableroadroutedistances

| From | To | Distance(km) | Highway | |----------|----------|----------------|-----------| | Wellpads | Lokichar | 25.0 | C46 | | Lokichar | Kitale | 214.0 | A1 | | Kitale | Eldoret | 72.0 | B2 | | Eldoret | Nairobi | 311.0 | A104 | | Nairobi | Mombasa | 482.0 | A109 | | Total | Total | 1,104.0 | |

Currently,thereare6storage tanksconvertedforhandlingand storage ofKenya Crude Oil, while3other tankswill requiresomemodificationstobefitforpurpose.

• approval in line with its mandate.The tariff is determined byvariousfactors,including trucking costs,storage and handling charges,and product loss, among others.

125. Themajor cost componentin the midstream tariff is the truckingcost and may be attributed totrucking over long distances underPhase1,resultingintoahigher tariff than would havebeenexpected underapipelineorrail transport.

• 126.Table 9 below shows the calculation of the fuel surcharge applied to crude oil transportation,showinghowchanges indieselprices translate intoan additional per-barrel transportation cost on top of thebasemidstrean tariff.

Table8:MidstreamTariff

| No | Item | Symbol | S/bbl | Comment | |------|---------------------|----------|---------|--------------| | 1 | Trucking | T1 | 16.34 | ExcludesVAT. | | 2 | Storage & Handling | SH | | | | 3 | Export Charges | EC | 0.99 | | | 4 | Admin&Monitoring | AM | 1.22 | | | 5 | Product Loss (0.5%) | PL | 0.3 | | | 6 | Insurance(0.25%) | IN | 0.15 | | | 7 | MidstreamTariff | | 20 | |

Table9:FuelSurchargeCalculation

| Fuel Pricing Formula | Fuel Pricing Formula | Fuel Pricing Formula | Fuel Pricing Formula | |------------------------|--------------------------------------------------------------------------------------|------------------------|------------------------| | a) | Quoted RatePerBarrel(TO) | $/bb1 | 16.02 | | b) | BaseDiesel Price(BDP):ERCNairobi RetailPrice15July2025 | Kes/Litr e | 171.58 | | C) | Current Diesel Price(CDP):ie.ERCPrice 15Nov2026applicablefor suppliesin December | Kes/Litr e | 180.00 | | d) | Fuel Factor(FF):Thepercentage ofthe total transport cost thatisattributableto diesel | | 40% | | e) | Fuel SurchargeFactor(FSF):(CDP-BDP)/BDP*FF | | 0.020 | | f | ApplicablePrice(TI)=TO(1+FSF) | S/bbl | 16.34 |

3.1.7Reviewof CriticalEnablers/Sectoral Interventions by GoK

• 127.The FDP assumes that the GoK will avail and facilitate key enablers,which will be critical to the successful implementation of theproject.Theseinclude;
• a)Land access-Provision and acquisitionofproject land isexpected tobecoordinated by theMOEP,and acquisitionistobeundertakenby theNational Land Commission (NLC)
• b)Water provision-The project has an averagewater requirement of approximately 70,000barrels per day(bwpd).Theproject will utilizewater from theTurkwel dam,

• withtheMinistryofWaterrequiredtoconstructapipelinefromTurkwelDamtothe upstreamfieldsaheadofproductioncommencement
• c)Securityarrangements-GOKthrough theNPSisexpected toenhance theCritical InfrastructureProtectionUnit tosupport theincreased operationsby the Contractors, includingtheprovisionof security alongtheAlHighway.
• d GridPower-GoKthroughrelevantAgencieswillberequiredtoprovidelast-mile grid power connections to the project's upstream fields,camps,airstrip,and boreholes.Power tobe suppliedon a commercial tariff basis.
• Roadinfrastructure-Asdiscussedearlier,GOKwillbeexpectedtoconstructsome roadsandupgradeothers.
• StorageandHandlinginfrastructureatKPRL-whichincludesprovisionofheattraced andinsulated storage tanks andconstructionofaheat-tracedandinsulated pipelinetoevacuatecrudeoilfromKPRLtoKOT2.
• g)Extension of railways including last mile modifications -In line with the Government'sstrategicplan toextend therailwaylinetoNorthern Kenya,the ContractorrequeststhattheGovernmentofKenyaprovidearailwaylineatthefields
• h)FDP assumes that theseenablerswill be deliveredwithout delay.Consequently,it is importantthatthegovernmentprioritizestheseinterventionsinthenextbudgeting sameintheupcoming2026BudgetPolicyStatementandclearlyhighlightedunder sectoralinterventions.

3.2LOCALCONTENT,ENVIRONMENTALANDSOCIALGOVERNANCE, WELLANDRESERVOIRMANAGEMENT

3.2.1 EnvironmentalandS Social 1Governance e(ESG):Balancing DevelopmentwithSustainability

• 128.TheField DevelopmentPlan(FDP)positions Environmental andSocial Governance (ESG)as a foundational pillar,dedicating an entire chapter that is Chapter 10,toa comprehensiveframeworkthatalignswithinternationalbenchmarksliketheInternational Finance Corporation (IFC)Performance Standards andKenyan legislation.This approach isinformed byoversixyears of baseline environmental andsocial data collection(20152021),mirroringbestpracticesinUganda and Ghana,where studies extendedpreceded project approvals.
• mitigation,drawinglessons fromAfricaninland oilprojects in Chad and South Sudan, whereinadequateoversightledtocommunityconflicts.
• 130.TheNational Land Commission (NLC),onbehalf of the State Department for Petroleum (SDP),will acquire gazetted community lands (where registered) and "polygons"(prospective explorationzones,geologicalfeatures,lease blocks,ordelineated extentsofinterest)onmaps)ofrequiredprojectlandacrossthedifferentoilfieldsin accordancewith therequirementsof the Land Act(2012).Inaddition to theoilfield polygons,land requirements will also include theKapese Integrated Operations Base. Withinthesepolygons,theProjecthasidentifiedadefinedfootprintofapproximately1,500 hectaresversusthepredictedpolygonlandareaofapproximately11,0o0hectares.

• 131.Tominimize the impacts of land acquisition,landnotrequired by theProject within the polygonswill continue tobe availableforcommunityuse.Somecontingentwellpadssit acquiredbyNLCinlinewithstatutoryrequirements.

132. Landrequirementsfor thenorthern and easternfieldswill befurther developedduring the appraisal activities and once finalized,theywill bepassed to theStateDepartmentfor gazettement and acquisition through theNLCin linewith statutoryrequirements.The Projectexpectsthislandwill be acquired throughcommunityland acquisition approachas defined underlaw.

• 133.Water stewardship isparamount in thiswater-scarce environment,unlike coastal fields in Ghana orAngola.Theplan calls for sourcing8,000-10,000cubicmeters of water per dayfromtheTurkwelRiverdamviaa70-kilometrepipeline,akintothedailyconsumption ofa town with 80,000-100,000residents.Securedthrough permits from the Water ResourcesManagementAuthority(WRMA),thisincludesrigorous monitoring,recycling andcontrolled abstraction toprevent escalationinto conflicts,as seenin Chad andSouth Sudan.
• 134.Air quality andclimate commitments include a zeroroutineflaring policyfor associated gas,which will instead be utilized forpower generation or re-injection,aligning with the World Bank'sZero Routine Flaring by 2030"initiative.This exceeds practices in older Africanoil provinces andcontributes toaprojectedcarbonintensityof25-30kgCO2per barrel,lower than Nigerias approximately 35 kg per barrelofoil equivalent (boe)or Angola's 40kg/boe,owing to thefield's low gas-to-oil ratio(GOR).

135. Biodiversity protection involves a dedicated Action Plan,with baseline studies and monitoring to avoid sensitive areas;notably,no operations encroach on gazetednational parks or reserves in the semi-arid ecosystem.Communityhealth andsafety areaddressed via a specializedplan,targetingover70%local sourcingfor thesecurityworkforce to enhance relations and job creation.Waste management entails an Integrated Waste ManagementFacilityhandling15,000-20,000 tonnesofnon-hazardouswaste and3,0005,00o tonnesof hazardouswaste over theproject'slifespan.

3.2.2 Well and Reservoir Management Plan (WRMP):Optimizing Resource Recovery for Nationai Benefit

• 136.The Well and Reservoir Management Plan (WRMP) serves as the technical roadmap for safe,efficient oil extraction over the 25-year license,converting static resources into produciblereserves through data-driven strategies.Thisplan iscrucial forKenya's first commercial venture,modeled on mature fields like the North Sea,where rigorous managementhasprolongedproduction andboostedrecoveryrates.

137. The core objectiveismaximizingultimaterecovery,targeting a factor of23-27%for keyfields likeNgamia and Amosingviapatternwaterflooding.This isrealisticfor an initialphase,belowtheglobal average ofabout35%for similaronshorefieldsbutwith potential for enhancement throughfuture technologies.For the mid-case stock tank oil initiallyinplace(STO1IP)of1.95billionbarrels,a25%recoveryfactorequates toroughly over326millionbarrelsofproducedoil,safeguardingsubstantial revenueforKenya.

• 138.Surveillanceis continuous and multifaceted:wellhead pressure andratesaremonitored daily;reservoir pressure via permanent gauges in keywells (4-6 surveys annually);fluid samplingyearly;andinjectionefficiency acrossover1o0 waterinjectorstomaintain voidagereplacement.Technologies such asElectrical SubmersiblePumps(ESPs) in most

producer wells optimizelift,while zonalisolationvia sliding sleevesorplugs addresses water-producingintervals,extendingwelllife.

139. The management cycle;planning,execution (drilling/completion),monitoring (pressures/rates),analysis (modeling/reviews),optimization,andintervention (workovers/newwells) ensures adaptive operations.Phase1involves drillingover40 new wellsonmulti-wellpads toreduce surfaceimpact,amodern approachcontrasting older Nigeriansiteswithdispersedinfrastructure. 140. Technically,South Lokichar's reservoirs resemble Uganda's Lake Albert Basin, requiringearlywater injectionunlikehigh-pressure offshore fieldsinNigeria orAngola phased strategiesinUganda(5-7years topeak)and Chad.Weakreservoiroversight in comparableprojectshasreducedrecoveryby10-20%,potentially costingbillionsin lost revenue;thus,the WRMP's transparency and independent verification are vital for positioningKenya as an informedpartner,preventing such pitfalls and extendingfield viability.

3.2.3 Local Content Plan (LCP):Fostering Economic Inclusion and CapacityBuilding

• 141.TheLocal ContentPlan outlines strategies to channelproject benefits toKenyan citizens and businesses,promoting public acceptance and socio-economicgrowth.As a first-time oil producer,Kenya's targets are ambitious,learning fromregional experiences toavoidover-relianceonforeignexpertise.
• 142.TheLocalContentPlanaims tomaximizevaluefor theKenyaneconomythrough Opportunity"to categorize sectors based on local capability,prioritizing immediate opportunitiesinareaslikesecurityandtransportwhilebuildingcapacityinspecializedoil andgas services.
• 143.First,PrioritySectorsidentifygoods and services that are alreadyavailablein the local market.andcanmeetindustrystandardswithminimal adjustments;theseincludeservices like cranehire,security,catering,customsclearance,andgeneral wastemanagement.
• 144.Second,PotentialTransformationSectorsinvolveservicesthat arenotcurrentlyready forimmediateprojectuptake andrequiresignificant developmenttomeet thenecessary standards,necessitatinglocal players enhance their capacity.
• 145.Third,OpportunisticSectorsrepresent high-value,specialized oil and gas servicessuch aswellservices,drilling,andseismicoperations,whichrequiresubstantialinvestmentand areleastlikelytobesourcedlocallyintheimmediateterm,thoughexpertisetransferfrom sectorslikegeothermalenergyisbeingexplored.
• 146.In terms ofworkforce composition,theplan targets apeakworkforce that is50% Kenyanfor thespecializedUpstreamDrillingandCompletionsoperations,and100% Kenyanforboth Civil WorksandMidstream operations.Toensurelong-term benefits, contractors arerequiredtoimplementclearsuccessionplans to transition expatriate-held rolestoKenyanprofessionalsovertime.
• 147.Atpeak,this translates theoverallproject(direct andindirect)workforceis estimated tototal2,000smallerthanUganda'sprojected10,000-15,000butcomparabletoGhanas Jubileefield(5,000atpeakconstruction).Unskilledlabor is targeted at 100%local,

aligning with Uganda and Tanzania,while skilledroles prioritize Kenyans,following Ghana'spathfromunder20%localparticipationatfirstoiltoover80%withinadecade.

148. Procurement prioritizes competitive Kenyan goods and services,channeling a significantshareofthe$5.7billioncapitalexpenditure(CAPEX) andoperationalspend to localfirms,with trackingmechanismsinplace.Focusareasinclude transportation,security, catering,civil works,and manufactured goods,mirroring supplier developmentin Ghana andNorwaythatempoweredSMEs,unlikeNigeria'searlyforeigndominance. 2. 149.Procurement is divided into Upstream and Midstream workstreams,with specific mechanisms to integrate Kenyan businesses.In the Upstream sector,while specialized drilling packages offer limited immediate local content,Civil Works(roads,well pads, cellars)areexpectedtoachievenearI0o%localparticipationforequipmentandservices. 3. 150.TheMidstreamphasepresentsthemost significantimmediateopportunity,particularly regardingthetransportationofcrudeoilfromLokichartoMombasa.ForPhase1,the Kenyan suppliers(at least 200of these trucks(33%) are specificallyforTurkana Countybasedenterprises.These county supplierswill be organized throughacooperative structure incorporating stakeholders from Turkana East,West,and North to ensure broad-based benefitsharing. 4. 151.In Phase 2,the project's logistical framework expands significantly to support higher production levelsby transitioningto a dedicatedrail transport system.This operation will requirethedailymobilizationof155wagonstomovecrudeoilefficientlytotheexport terminal.With this enhanced infrastructure in place,the project aims to facilitate a substantialvolume of trade,enabling monthly exports to range between 600,000 and 1,500,000barrels. 5. 152.Comparatively,Kenya's Local Content Plan surpasses regional benchmarks by integrating enforcement and reporting,asin Ghana's successful fabrication growth.It positionstheprojectasacatalystforregionalindustrializationbeyondNairobi and Mombasa,akin to oil-driven hubsin Aberdeen,Scotland,or Stavanger,Norway.

CHAPTERFOUR

COMMITTEEPROCEEDINGS

4.0PUBLICHEARINGSIN TURKANA,WEST POKOT,UASIN GISHU,TRANS NZOIA,LAMUANDMOMBASACOUNTIES

153. The Committee undertookpublichearingin six(6)counties that are expected to experiencedirectandsignificantimpactsarisingfrom theimplementationoftheField Development Planand Production Sharing Contractsfor BlocksT6and T7in South LokicharBasin,Turkana County.Thisisin accordancewithArticles95(2)and96of the ConstitutionontherolesoftheNationalAssemblyandtheSenaterespectivelyandArticle 118oftheConstitutionwithregardstopublicparticipation.

4.1TurkanaCounty

TheJointCommitteeconductedpublicparticipationinTurkana Countyfrom3rdto6"February 2026with engagementswithgovernmentofficials andmembersofthepublicinthree(3) key constituenciesi.e.Turkana Central,TurkanaSouthandTurkanaEast.

4.1.1 Meetingwith theTurkana CountySecurity Committee

154. The Joint Committee held a briefing session in Lodwar town,Turkana Central Constituency,with.the Turkana County Security Committee,chaired by the County Commissioner,Mr.J.M.Kavita,MBSon3dFebruary2026.The engagement focused on security preparedness and critical.infrastructure considerations ahead of project implementation. 155. The issue of security featured prominently in the engagement.The County Commissionerinformed the Committee thatwhileTurkana Countyhasgenerallyremained stable,oil-related activitiesintroduce new security dynamics,including risks associated withincreasedmovementofpersonnel,equipment,andhigh-valuecommodities,especially on theLokichar-Kapenguria stretch oftheRoad.Heemphasized theneedfora coordinated security architectureinvolvingnational security agencies,county administrators,and local communitystructurestosafeguardinfrastructure,personnel,andsurroundingcommunities. 156. The County Commissioner emphasized the centrality of structured andcontinuous community engagement,noting that Turkana communities have borne the social, environmental,andeconomicimpactsofpetroleumexplorationoveranextendedperiod. He stressed that inadequate consultation,delayed feedback loops,or unclear communication ofprojecttimelinesrisk exacerbating community fatigue,mistrust,and potentialconflict.In thisregard,the Commissioner underscoredtheneedforclearpublic communicationon thetransitionfromEOPStofull-fielddevelopment,includingwhat benefitscommunities shouldrealisticallyexpect at eachphase and theproceedsfrom the EOPSandtheirutilization. 4. 157.On land access and compensation,the County Commissionerhighlighted persistent grievancesrelatedtolandacquisition,delayedcompensation,andperceivedinequitiesin valuation.HecautionedthatunresolvedhistoricalclaimscouldunderminetheFDP'ssocial licencetooperateandexpose theprojecttolitigationandoperationaldisruptions.He therefore calledfor transparent compensationframeworks,clear timelines,and enhanced coordination between the national government,county government,and project proponents.

• 158.On water resources,the engagement underscored water scarcity as a critical issue in Turkana.TheCountyCommissionerstressed thatwater abstractionforoiloperationsmust bebalanced against domestic consumption needs andirrigationneeds.He emphasized the importanceofclear demarcationof theroutes thewaterpipelineisexpected to take,and assurances onwatersecurityfor thehostcommunity andtheirneighboursinlightof the proposedwaterpipelinetobeconstructedfromtheTurkwelDamtotheLokicharoilfields.
• 159.The County Commissioner further highlighted expectations around local content, opportunities,skillstransfer,andparticipationin theprojectvaluechain.
• 160.The County Commissioner further raised social cohesion and governance concerns, particularly theriskofclannism andintra-community competitionarisingfromperceived oractual unequal distributionofprojectbenefits.Hecautioned thatoil-relatedbenefits, employment opportunities,and compensation processescan easilybecomeflashpointsfor conflictifnotmanagedwithsensitivitytoTurkana'ssocialstructures.
• 16l.He specificallyunderscored thecritical role of community elders,traditional leaders, and seers in the Turkana context,noting that these actors command legitimacy,moral authority,anddeepculturalknowledgethatformaladministrativestructuresalonecannot replicate.The County Commissioneradviscd thatmeaningful engagement with elders and seersshouldbeinstitutionalized throughout theprojectlifecycle,fromplanningandland access negotiations to compensation,grievance redress,and conflictresolution,to ensure communitybuy-in,manage expectations,andpreserve social harmony.
• 162.In conclusion,the County Commissioner reiterated that the success of the FDP is contingentnotonlyontechnicalandcommercialviabilitybutalsoonrobustgovernance, transparentpublicparticipation,timely compensation,securitycoordination,andinclusive development outcomes.He emphasized that sustained engagementwith county leadership and local communities is essential to mitigate risks,maintain stability, and ensure that petroleum development contributesmeaningfully to the socio-economicdevelopment of TurkanaCounty.
• 163.On the water and irrigation aspect,Mr.Edwin Cheruiyot,the Chief Executive Officer oftheNorthRiftValleyWater WorksDevelopment Agency,representing the CS,Ministry of Water,informed the Committee that two water supply lines are planned from Turkwel; onc designated for irrigation and oil processing,and anotherfor domesticuse.The domestic alongthecorridor.Hefurtherindicatedthatthecontractorwouldmobilizetothesiteupon ratificationoftherelevantprojectdocuments.
• 164.The Committee underscored theneed toprioritize accesstowater forresidents and emphasizedthatsupplytohostcommunitiesshouldbeoperationalaheadofproduction activities,asameasuretopromotecommunitygoodwill and support sustainableproject implementation.

4.1.2 Engagement with the Turkana County Assembly & Turkana ProfessionalsAssociation

OnTuesday,3rdFebruary 2026,theJoint Committee then engagedMembersof the Turkana County Assembly,led by the Speaker,in recognition of the Assembly's constitutional oversight role and its responsibility in facilitating informed public participation,and representatives of the Turkana Professionals Association to deliberate on the Field DevelopmentPlan(FDP)and the associatedProduction Sharing Contracts(PSCs)at the CountyAssembly chambers.The engagementswereasfollows:

• 165.During the engagement,the Speaker raised key issuesrequiring clarification before MCA feedback,including theimplicationsof theFDP andtheapplicableProduction SharingContracts(PsCs),landsettlementpatterns andoutstandingcompensationclaims, local contentcommitmentsonemployment andskillsdevelopment,and theEnvironmental and Social Impact Assessment(ESIA),particularly concerning environmental risks and mitigationmeasures affectinghostcommunities.Thiswas subsequentlyundertakenby the JointCommittee,afterwhich theMCAsgavetheirviewsandfeedback.
• 166.CountyAssemblyMembersraised concernsregardingthedistributionof the5%local community's revenue share,particularly how benefits would be allocated among subdividedsub-counties.Legal Counselclarified thatwhilepetroleumlegislationand the project frameworks allocate benefits at county and local community levels,the county government retains discretion over intra-county distribution,which would require appropriatelocallegislative oradministrativemechanisms.
• 167.Members emphasized theneed foraclear and operational definition of"local community"thatrecognizesmigratory patterns andseasonal land use,noting thatbenefits shouldprioritizecommunitiesdirectlyaffected byextraction activities.Proposalswere advanced todefinealocalizedhostcommunityzone,estimated at approximately30square kilometers aroundextractionsites,toguideallocationofthelocalshare.
• 168.MembersadvocatedforharmonizationbetweentheTurkanaCountyLocal Content Act,2024,and thenationallocal contentframeworktoensurelegalcoherence.Suggestions weremadetorefineemployment andprocurement targets,includingreservingup to70% ofworkforce opportunities forTurkanaresidents,particularly in trucking and transport services,to maximize local economic participation.
• 169.The Turkana Professionals Association (TPA)provided specific metrics for these demands,requesting that:Trucking:70%of trucking contracts beallocated tolocal contractors.Employment:100%ofdrivers and100%oflogisticsstaffbehired locally,with trainingprovided to ensure compliance.Theprojectmust prioritizeKenyan citizens for employmentandSMEsforprocurement.
• 170.Revenue sharingandland ownership emerged as significant areas of concern.While thestatutoryrevenue allocationremains75%tothenationalgovernment,20%tothecounty government,and 5% to local communities,Members called for clearer mechanisms governing sub-county distribution tominimize disputes.
• 171.Discussionsonlandrightsunderscoredconstitutionalrecognitionofcommunityland expressed concern over potential fraudulent claims and stressed that compensation processesmustbetimely,fair,and transparent,consideringcommunityties andmigratory practices. Concerns were also raised regarding the undervaluation of land during compensation,promptingcallsforanurgentreviewofvaluationframeworkstoreflect the economicsignificanceofoil andgasresources.
• 172.Concernswere alsoraisedregarding theundervaluationoflandduringcompensation. TheTPAhighlightedthatcurrentvaluationframeworksfail toaccountfortheenhanced economicvaluearising from oil discovery.They specificallynoted that there exists historicalInjustice where Specific areas,such as theKapese Airstrip,were reportedly

acquiredwithoutcommunityknowledge.Thepastmismanagementandpreviouspayments byTullowOil(KES258million)wereremittedtocountyauthoritiesrather thandirectly toaffectedcommunities,apractice theTPA arguedviolatesthespiritof theCommunity LandAct.Theyproposed thatcompensationmust account fortheEre system of traditional ownership and exclude"unowned"land classifications simplybecause structures arenot visible.

• 173.Security was identified as a critical enabler for project implementation and oil transportation.Members cited persistent challenges,including cattle rustling, armed attacks,and uneven deployment of security personnel despite thepresence ofmultiple units.Calls weremadefor the redistributionof forces along transport corridors,equitable disarmament initiatives,and strengthened infrastructure,particularly roadnetworks,to s
• 174.Environmental and social safeguards featured prominently in the deliberations. Members highlighted risks associated with labor influx,including sexual exploitation, abuse,andgender-basedviolence,emphasizing theneedforproactivemitigationplanning supported by multi-agency coordination. Proposals included engaging specialized consultants and strengthening collaboration with relevantministries to monitor social impactsthroughouttheprojectlifecycle.

175. Environmental protection measures were also discussed,including contractor obligationsfor waste management,pollutioncontrol,andpost-extractionsiterestoration, supported by decommissioningprovisions tomitigate publicliability.The Ministryof Water outlinedplansfor substantial dailywater supplyinfrastructure,with allocationsfor domestic and oil/irrigation use,alongsidetreatment systems and environmental safeguards. Membersfurtherraisedconcernsaboutpotentialhealth andlivestockimpactslinkedto wastemanagement,urgingstrict adherencetoeffluent standardsand stronger enforcement mechanisms.

• 176.TheTurkanaProfessional Association specified thatwastemust be transported by local transporters using compatible trucks to designated disposal areas.Regarding water,the TurkanProfessionalAssociationnotedthatoil productionwillrequireapproximately1,560 cubicmeters ofwaterper day.They demanded that additionalwellsbedrilledfor domestic use,kitchen gardening,and livestock to support the surrounding communities.
• 177.The Assembly emphasized the importance of transparency and accountability in revenue reporting and compliance with local contentrequirements,including appropriate penaltiesfor non-adherence.Membersarecommitted to advancing countylegislation to operationalize management of the county and local revenue shares,ensuring complementaritywithnationallaws.
• 178.Representatives of the Turkana ProfessionalsAssociation proposed ring-fencing local contentopportunities and employment applicationsforTurkanaresidents to enhancelocal initiatives,includingstudyvisitstoIndia,tostrengthen agricultural and livestockpractices within thecounty.
• 179.TheAssemblyfurther advocatedforprovisions allowingmidtermreviewofproject pricingstructures and timelines,aswell as the establishment ofan oversightcommittee to monitorcapitalexpenditure(CAPEX)operationsundertakenbytheprojectcontractor.

• 180.Themeetingconcludedwitha sharedcommitmenttocontinuedcollaborationbetween theJoint Committee and theTurkana CountyAssembly CommitteeonLands,Energy,and UrbanAreasto strengthen oversight andpolicy coherence.Members alsounderscored the needfor thecountygovernmenttoundertake comprehensivephysicalplanningandzoning tosupportorderlydevelopment.
• 181.Furthermore,theTurkanaProfessionalAssociationproposeda significantlong-term economiccommitment:thatatleast25%ofthetotalprojectcostbevisiblyinvestedwithin Turkana County every fiveyears toensure theregion transitionsfrommarginalization to economicempowerment.

4.1.3PublicBarazaatEkalesCentre,Lodwar-Turkana Central

TheJoint Committeelater conductedapublicparticipationforumatEkales CentreinLodwar Town to gather publicviewson the proposedFieldDevelopmentPlan(FDP)and associated Production Sharing Contracts (PsCs).Participants included residents,elders,civil society representatives,professionals,faith-based organizations,women,youth,persons with disabilities,and county stakeholders.Discussions covered security,environmentalsafeguards, governance,fiscal arrangements,and communitybenefits as below:

• 182.Security andInfrastructure Concerns:Rampantinsecurityin Turkana Countywas identified as a significantrisktoprojectplanning andoperations.Participants urged the assets.Theabsenceofsecure alternativeroadnetworks,particularlyalong theLokichar corridor,was cited as contributing tovulnerability,congestion,and delayed emergency response.

183. CommunityParticipationand Land Rights:Community leadersemphasized the importanceofmeaningful participationin decision-makingprocesses andcalledforclearer benefit-sharingand compensationframeworks topreventdisputes.Concernswereraised regarding the absence of free,prior,and informed consent (FPIC)mechanisms and incompletecustomarylandregistration,whichparticipantswarnedcouldexposetheproject tolegalandsocialchallenges.TheFriendsofLake Turkanahighlighted thatTurkana pastoralism hasaTotal EconomicValueofKSh 1.2trillionannually,which isat risk withoutproperlandsafeguards.

• 184.Additionalproposalsincluded:prioritizingleasing arrangementsforcommunity land rather thanoutrightsale andensuringthecountygovernmentand localcommunitiesare activelyinvolvedinnegotiationsandagreementsaffectingcommunityresources.
• 185.Environmental Safeguards:Civil society representatives expressed concern that existingenvironmentalimpactassessmentswereincompleteorinsufficientforthescaleof theproject.Theyhighlightedtheabsenceofstrategicenvironmentalandcumulativeimpact analysessuited toarid andclimate-vulnerable ecosystems.Specificissuesraised included thelackofdefinedlimitsongasflaring,theabsenceofbaseline airqualitydata,andlimited public emissionsreporting.
• 186.Potential disruption tothepastoraleconomy andbroader ecological riskswere alsoemphasized.Governancegapsinenvironmental liabilitymanagementandcontract ratificationwerenoted.ParticipantsfurthercalledforaccesstodetailedEOPstostrengthen publicoversight.
• 187.FiscalArrangements and RevenueRealization:Residents and countyrepresentatives expressedconcernthattheprevailingfiscalstructurecoulddelaytherealizationofpublic

benefits.VATexemptions and highercostrecovery ceilingswere citedasfactors thatmay defer county andnational revenueflows.Participants argued that these arrangements could reduce earlygovernment takeandweakenTurkana County's ability tofinance development priorities.Callsweremadeforareviewoftaxexemptionsandcostrecoveryprovisionsto safeguardpublicinterest.

• 188.Theresidentspresented data suggestinga potential fiscal loss of USD14perbarrel by usingroad transport (USD 20/barrel) insteadof apipeline(USD 6/barrel),which could amount to a loss of USD 700,000 daily atpeakproduction.They alsovoiced concern that raisingthecostrecoveryceilingfrom65%to85%wouldresultinKenyareceivinglittleto nonetrevenueforyears.
• 189.Local Content and Community Benefits:Ensuring equitable local participation was identified ascritical to socialstability andeconomicinclusion.Participants observed that whilelocal contentpolicies seek toreserve significant employment andprocurement opportunitiesforTurkanaresidents,includingproposalsforup to70%local employment, enforcementremainsweak.Concernswereraisedaboutoverrelianceoncasuallabor, limited inclusionofskilledlocal professionals,andprocurementpatternsfavoringexternal firms.Priority access to trucking contracts,including routing considerations,expanded training and scholarship opportunities, and fair compensation mechanisms were emphasizedasnecessarytomaximizelocalbenefits.
• 190.Participants also called for clearer governance of community revenue allocations, includingstructuredmanagementframeworkstoensure transparency and accountability. Unresolved landcompensationdisputeswerecited as acontinuingsourceofmistrust.
• 191.Additional concernsincluded theneed to addresswelfareconsiderationsforvulnerable groupsincludingelderlyresidents,andtofacilitate employmentopportunitiesfor students previouslysponsoredunderindustry-supportededucationprograms.

192. Governance and OversightReforms:Participants stronglyadvocatedforreforms to strengthenmulti-leveloversightofthepetroleumsector.Proposed amendmentstoexisting legislation would explicitly incorporate county government and community rolesin oversight,environmentalprotection,revenue management,andcontractadministration.A jointoversight framework invoivingnational and county governments,civil society,and private stakeholders was suggested to enhance transparency and responsiveness.

• 193.Decentralization ofenvironmental oversightwas also cmphasized,with callsfor greater operational authority for county-levelregulatoryofficers to enable timely enforcementactionsonpollution,wastemanagement,andecosystemprotection,supported byclear accountability andescalationmechanisms.
• 194.Finally,governance and youth proposed the establishment of scholarship programs coveringTVET,secondary,andprimaryschools,and theacquisitionofmobileclassrooms tosupport pastoralistcommunities duringmigration.The Turkana Council ofElders proposed that the25%profit allocatedto theCountybering-fenced in a specialpurpose accountoverseenbyaBoard appointed by the Governor,rather thanbeingmixedwith shareablerevenue.Theyalsocalledfortheestablishmentofasemi-refineryfactoryatthe extractionsitetomaximizecommunitybenefits.

4.1.4 PublicParticipation atKalemgorok,Turkana South

OnWednesday,4thFebruary2026,theJointCommitteeconductedapublicparticipationforum at Kalemgorok in Turkana South constituency,bringing together drivers,professionals, community leaders,Bunge la Mwananchi representatives,youth,women,and elders. Participantsraised thefollowingkeyissues:

• 195.Communitymembersproposedincreasingthelocal communityrevenue sharefrom 25%to at least 30%,arguing that the current allocation is inadequate givenrising insecurity and developmentpressures in the region.Speakers emphasized that a more equitable community share would strengthen local engagement,promote stability,and support infrastructuredevelopment.Concerns were alsoraised about theexisting revenue distributionframework,whichallocatesshares amongthe nationalgovernment,county government,and local communities,with some participants viewing the structure as insufficientlyresponsivetolocalneeds.Severalcontributorscalledforareviewofthe formulatoenhancefairnessandcommunityempowerment.
• 196.The Turkana Council ofElders highlighted a critical flawin theProduction Sharing Contracts(PsCs),noting thatafter thecontractorrecoversup to85%as"costoil,"the community's5%shareisactuallyreducedtoamere0.735%oftotalproduction.Speakers emphasizedthatamore equitablesharewouldsupportinfrastructure andcalledforrevenue tobe disbursedfrequently,ideallyevery threemonths.Toensurelong-termbenefits,they proposedestablishing aHost CommunityDevelopmentTrustFund(HCDTF)under the PetroleumActtomanagethesefundsforeducationandhealthcare.
• 197.Security emerged as a central concern,with participants linkinginsecurity toreduced economic activity,weakened investor confidence,and delays in infrastructure development.Leaders calledfor stronger,coordinatedsecurityinterventionstosafeguard investments andprotect community interests.Countygovernmentswererecognized as criticalactorsinlocaloversight,whilecollaborationwitheldersandcommunityleadership was emphasized as essential to improving security outcomes and ensuring project sustainability.
• 198.TheCouncilofEldersdemanded thatthegovernmentrestoresecuritywithintwo weeks,specifically citing theloss of school children andherdsmen in ArooSub-County. Youthleadersexpressedconcernthatbordersmightbecomeporouswhilemenareengaged inproject work,leaving women and children vulnerable.They recommended a comprehensive disarmament initiative modeled after successful efforts in neighboring counties.Leaderscalledforcoordinatedinterventions,suggestingthattheKenyaDefense Forces(KDF)provide securityfor infrastructureprojectslike thewaterpipelinewhile localshandlethelabor.
• 199.Governanceandaccountabilityfeaturedprominentlyin thediscussions.Participants stressed theimportanceofclearlydefinedrolesamongnational andcountygoverniments, communityinstitutions,andproject stakeholders toimprovetransparencyinrevenue managementandbenefitsharing.Eldersandlocalleaderswereviewedasvital representativesinoverseeingcomplianceand safeguarding communityinterests.Some participantsfurther advocatedforcommunityinclusionin thesigningof agreements and contractsasameansofreducingconflictandstrengtheningtrust.
• 200.ProfessionalassociationslikeTUSODTAandtheArooDriversAssociationrequested Someparticipantsfurtheradvocatedforcommunityinclusionin signingagreementsand MemorandumsofUnderstanding(MoUs)toreduceconflictandstrengthentrust.

• 201.Tax incentives granted to Gulf Energy were raised as a policy concern.While participantsacknowledgedtheimportanceofmaintaininganattractiveinvestment environment,theycautionedthatexcessiveexemptionscouldlimitrevenueavailablefor public services and infrastructure.Speakers underscored the need to balance investor incentiveswithfaircontributionstolocaldevelopmenttosustaincommunityconfidence.

202. Additional concernsfocused onthemethodofland access,with aresolutepreference for land leasing rather than outright compulsory acquisition to protect the nomadic pastoralistlifestyle.Participants emphasized theneedfor adequatedisturbanceallowances and prompt compensation for thosedisplaced bypipelines.Seriouspublichcalth concerns wereraisedregarding"legacy pollution"and exposure to hydrocarbons like benzene,which are linked to leukemia and reproductive health issues.Consequently,participants demanded strict adherence to the Environmental Management and CoordinationAct (EMCA)androbustwastemanagementmeasures. 203. Capacitybuildingandlocalempowermentwere identified aslong-termpriorities. Participants supported scholarship programs, vocational training,and other skills development initiatives aimed at increasing local participation in project-related employment.Strengthening community capacity was seen as critical toreducing dependence on external labour while improving safety,professionalism,and long-term economicinclusion. 204. Decentralized decision-making structures were also discussed,with sub-county level committees proposed as key mechanisms for project oversight andresource allocation. Participants observed that enhanced community ownership and participation would improveresponsiveness,accountability,andthesustainabilityofdevelopmentinitiatives. 205. Additional concerns andproposalsincluded apreferenceforlandleasingrather than outright acquisition,provision of adequate disturbanceallowancesfor displacedpersons, strengthenedcorporatesocial responsibilityinitiatives,particularlyinsportsdevelopment, ring-fencing at least 70%ofemployment opportunitiesforresidents,establishment of a scholarshipfund,disclosure ofproceedsfrom theEarlyOilPilotScheme,allocationofup to400truckingopportunitiestolocaloperators,andstrict adherencetoenvironmental measures.

4.1.5PubiicParticipation at Lokichar Town, Turkana South Constituency

OnWednesday,4hFebruary2026,theJoint Committee conducted apublichearingforum at LokicharTown inTurkana South Constituency,engagingward representatives,the council of elders,women,youth,persons with disabilities (PwDs),and faith-based organizations. Participantsraisedthefollowingkeyissues:

• 206.Landrights,recognition,and compensation emerged as a central concern.Community members called for fair recognition,transparent benefit sharing, and equitable compensationrelatedto landacquisitionandresourceutilization.Severalspeakers emphasizedrecognitionoftheKalabata communityandcentral landrights,supported by clear valuation frameworks and safeguards aligned with environmental and social standards.Participantsunderscored theimportance oftransparentrevenuemanagementto ensurebenefitsreachtherightfulcommunitymembers.Inclusiveconsultationsinvolving local institutions,particularly the Kalabata Land Management Committee(KLMC),were identified as critical to successful implementation,with the timely settlement ofland mattersviewedasakeyindicatorofcommunitytrustandlocaleconomicupliftment.

• 207.Environmentalprotection and cultural heritage preservation were also prioritized. Participantsexpressedconcern overpotential pollutionrisks associatedwithoilactivities and their implicationsforpublichealth andlivelihoods.Thecommunity called for comprehensiveenvironmentalmonitoring,mitigationmeasures,andemergencyresponse frameworks to safeguard ecosystems andcultural assets affected byland use changes.
• 208.Inclusion andeconomicparticipation ofpersonswith disabilitiesfeaturedprominently in the discussions.Representatives of PWDshighlighted long-standingsystemicexclusion andadvocated for affirmativeinclusionin employment,procurement,and community engagementprocesseslinkedtooilsectoroperations.Proposalsincludedreservingatleast 10% of employment and procurement opportunities for PWDs,alongside targeted educationandtraininginitiatives,includingscholarshipandskillsdevelopmentprograms, toimprove preparedness for emerging opportunities.Participants emphasized that engagement ofPWDsmustbe substantive andnot merely symbolic.
• 209.Concernswereraisedregardingoilrevenue sharingand costrecovery arrangements. Participants stronglyopposedproposalstoincrease thecostrecoverycapfrom65%to85%, arguing thatsuchamovewould significantlyreduce the profitpoolavailablefor recoverycoulderodefiscalreturns,weakenpublictrust,andundermineperceivedfairness in thesector.Theyurgedpolicymakerstoreview the capwith aview toprotectinglongtermnationalandcommunityinterests.
• 210.The proposed stabilization clause in project agreements also attracted criticism. Communityleadersargued thatfreezing theapplicabilityoffuture environmental,labor, andland lawsrisksundermining sovereignty,social protections,andadaptivegovernance. Participantscalledforrenegotiationmechanismsthatallowcontractstoevolveinlinewith nationallegalreformsandcommunityexpectations.
• 211.Transparency andinclusivegovernancewererepeatedlyemphasized asfoundational to trust.Participants called for open decision-making processes,meaningful community involvement,and structured engagementwith Turkana County institutions to prevent exclusion.Clearcommunicationchannelsandaccountabilitymechanismswereviewed as essentialtoensuringinformedconsentandminimizingconflict.
• 212.Security and emergencypreparednesswere identified asnecessary safeguardstoprotect livelihoods,publichealth,andproject continuity.Participantslinked securitytosocial stabilityandresource-relatedtensions,advocatingforcoordinatedprotectionmeasures and strengthenedlocaloversightstructures.
• 213.Additionalproposalsincludedring-fencing400outof600truckingopportunitiesfor local operators,allocating10%of truckingopportunitiestopersonswithdisabilities,the establishment ofa sports stadium through corporate social responsibility initiatives, compensation forenvironmentalimpactsandlegacypollution,increasingdisturbance allowancesfrom15%to30%,andimplementationofaratifiedlivelihoodrestorationand resettlementplan.

4.1.6 PublicParticipation at Nakukulas,Turkana East Constituency

On themorningofThursday,5thFebruary2026,theJointCommitteeconductedapublic participation forum at Nakukulas in Turkana East constituency,engaging civil society representatives, the Nakukulas Land Management Committee,the council of elders, professionals, sand harvesting associations,faith-based organizations,youth,and women.

Participantsraised arangeofsocial,environmental,governance,andeconomicconcernslinked toongoing andproposedpetroleumactivitiesin theregion asbelow:

• 214.Security featured prominently in the discussions.Community members expressed concernoverpersistentinsecurity anditsimpactonlivelihoodsandinvestmentconfidence. Participants called for enhancedKenya Defence Forces patrols,policereservists,and the construction ofmodern police facilities to strengthen response capacity.Speakers emphasized thatimprovedsecuritywouldnotonlyprotectresidentsbut alsocreate a more stable environment for development projects.Additionally,it was proposed that KDF providesecurityforthewaterpipeline constructionwhile local businessmen,professionals, andyouthhandletheactuallabor.
• 215.Participants advocatedfordirectcommunityinvolvementin the signingofcontracts and agreements affectinglocal resources,arguing thatinclusiveprocesseswould build trust and accountability.Therewere strong callsfordisclosureofproceedsfrom early oil pilot operations to ensure communities understand howrevenues were managed and shared.
• 216.The Nakukulas Land Management Committee specificallypetitioned for the establishment ofa"Host CommunityInformation Office"at theprojectsite to allow the publictoaccessrelevantinformation andchannelgrievances.

217. Environmental protection and social safeguards formed a significant part of the dialogue.Residents called for comprehensive mitigation measures to address potential environmentalandhealthrisks associatedwithoil development.Participantsstressed the needforaresettlementactionplantobe finalizedandimplementedpriorto any displacement,alongsideadequate compensation frameworks thatinclude interest-earning accountsforlandawards.Restorationofgrazing ecosystemswasidentified ascritical,with a specificdemandfortheFDPtofund acommunity-led treenurseryinNakukulastocreate greenjobs.

• 218.Communitymembersfurtherproposed the establishment of long-termenvironmental protections,including an environmental liability fund to address oil spillages,a decommissioning guarantee to ensurerestoration after project closure,and a projectspecific ClimateAdaptation Levyto buildlocalresilience.Participants alsosupported localized carbon offset initiatives and a"Gas-to-Power"mandate to convert associated gas intocheap electricityforlocal schoolsand healthcentersrather than flaringit.
• 219.Economic inclusion and benefit sharingwere widely discussed.Participantsproposed that at least 7o% of trucking opportunities,procurement contracts,and employment positionsbereservedforresidents.Therewerecallstoreviewbenefit-sharingarrangements toensuretheyarecomputedfromgrossrevenueratherthanprofit.Toprotectlocalinterests, theKapesecomimunityformallyrejectedpermanentcompulsoryland acquisitionforthe KapeseAirstrip,demandinginsteadalong-termleasehold agreementsothelandreverts to the communityafter decommissioning.
• 220.Accessto social serviceswas alsoraised,particularly the extensionofwater supply infrastructure to Nakukulas to support growing community needs.Participants further called for affirmative action measures targeting arid and semi-arid areas (ASALs), including"Green Skills" programs to train local youth in renewable energy technologies. Legallybindingsocialsafetynets,such ascash transferinitiativesmodeledaftertheHunger Safety Net Programme,were proposed to cushion vulnerable households from shocks causedbydisplacement.

• 221.Overall,speakers stressed that developmentmust proceedin amanner that safeguards livelihoods,protects the environment,and ensures communities remain meaningful dependonbalancingeconomicopportunitywithsocialjustice,environmental stewardship, andtransparentgovernance.

4.1.7PublicParticipation at Lopii,TurkanaEast Constituency

In theafternoonof Thursday,5thFebruary2026,theJoint Committeeconductedapublic participationforum atLopiiinTurkanaEast Constituency.Discussionscenteredonsecurity, andplannednationalinfrastructure andpetroleumprojects,withparticipants acknowledging thepotentialsocio-economicbenefits,suchasemploymentandimprovedlivelihoods.The engagementswereasfollows:

• strengthen protectivemeasures around infrastructure corridors,including modernizationof policefacilitiesandcoordinateddeploymentofnationalsecurityagenciessuchasthe KenyaPoliceService and theKenya DefenceForces.Therewas a specificproposal that while the KDF shouldprovide securityforinfrastructurelike thewaterpipeline,local professionalsandyouthshouldbeawardedtheactualconstructionlabor.Speakersnoted thatpredictable andwell-structured security arrangements,includingregularcheckpoints assets.Youth andstudentsfurtherrecommended comprehensivedisarmamentinitiatives to protectvulnerablepopulationslikewomenand childrenwhilemenareengagedinproject Work.
• 223.Local contentparticipationwasdiscussedalongsidesecurity,withcommunitymembers calling for stronger frameworkstoensurelocalprofessionalsandresidentsbenefit meaningfully.Participants proposed a 70% local and 30%non-localparticipation framework,includingtheprogressive appointmentofqualifiedlocalstosenior operational roles.The discussions highlighted theneed for enforceable guidelines,such as the mandatory publication of Local Content Plans and compliance audits,to preventpast shortcomings.Professional associationsrequestedformalrecognition aslegal stakeholders tomonitorthesecommitmentsandfacilitatetransparentrecruitmentprocesses.
• 224.Landadministrationand disputeresolutionalsofeaturedprominently.Participants stressedthatunresolvedlandownershipissuescontinuetoposeriskstoprojectstability andcommunityrelations.TheroleoftheNational Land Commissionwasrecognized as central to clarifyingland rights and managing disputes.In addition,proposals were made tostrengthentrainingforlocaladministratorsinlandgovernanceandgrassrootssecurity coordinationtoimproveimplementationcapacityandreduceconflict.Integrationbetween countyandnationalframeworkswas seen asnecessary to eliminateoverlaps,clarify mandates,andstrengthenaccountability.
• 225.Integrationbetweencountyandnationalframeworkswasseenasnecessarytoeliminate overlapsandstrengthen accountability.Participantsobserved thatregularengagementwith elected leaders,including senators,members oftheNational Assembly,and committee leadership,isessentialtoalignprojectobjectiveswithlocalrealities.Coordinationbetween national andcounty authoritieswasviewed as critical to managing emerging challenges, such as"legacy pollution"and public health risks like respiratory distress and reproductive issuesassociatedwithoilexposure.Speakersnoted thatempoweringlocalleadership wouldfostertrust,improvecommunication,andsupporttheeffectivedeliveryofboth

security and local contentobjectives,ensuring that development proceeds in a socially sound and inclusive manner.

• 226.Overall,participants stressed that successful project implementation depends on balancingsecurity,inclusiveparticipation,andsound governancestructures,supportedby continuousdialogueamongallstakeholders.

4.1.8PublicParticipation at Lokori,TurkanaEast Constituency

In themorningofFriday,6hFebruary2026,theJoint Committee conducted apublichearing forum at Lokori in Turkana East Constituency, engaging professionals, faith-based organizations,elders,youth,women,and PwDs.Discussions focused on local economic participation,environmental safeguards,security,social protection,and community benefit sharing,with a specificemphasison theField Development Plan(FDP)and ProductionSharing Contracts(PSCs)for BlocksT6and T7.The discussionswere asfollows:

• 227.Local content and economic inclusion featured prominently.Participants called for catering andothersupportservices associatedwithproject operations tobesourced locally. Theyemphasized that all6o0 truckingopportunitiesshouldprioritizeresidentstomaximize local economic benefit. Speakers noted that a previous civil works contractor had successfullyemployedasignificantnumberoflocalworkers,whichtheyencouragedfuture contractorstoemulate.Furthermore,therewere specificdemandsfora70%local to30% non-local participation framework and theprogressive appointment of qualifiedlocals to supervisoryandsenioroperationalpositions.
• 228.Women's economic empowerment was also highlighted,with calls for deliberate measures to increase participation in project-related opportunities.This includedrequests for clear frameworks to supportwomen andyouth in tender and procurement processesto ensure equitable benefit-sharing.

229. Environmentalandsocial safeguardswerewidelydiscussed.Communitymembers emphasizedtheimportanceofacomprehensiveEnvironmentalandSocialImpact Assessment(ESIA),expressing concern about potential oil spillages,livestock disruption, andbroader ecologicalrisks.Participants stressed theneed forproper displacement procedures where land acquisition is required,including fair consultation and compensation toprotect livelihoods.Therewas a strongpreference forland leasingrather than outright acquisition,given that Turkana land is held in trust for nomadic pastoralist communities. Concerns were aiso raised regarding"legacy pollution" and the long-term health impacts of hydrocarbon exposure, such as respiratory distress and reproductive issues.

• 230.Security concernswereraised in relation to infrastructure development and transport routes.Participants advocated for theconstruction of the Lokichar-Kapedo-LokoriMarigat-Nakururoute and calledfor trucking through the same route.Additionally,they requestedenhancedsecuritycoordination,suggestingthatwhile theKenyaDefenceForces (KDF)should provide security for infrastructure construction,localprofessionals and youthshouldbeawardedtheactual laborcontracts.
• 231.Communitywelfare and governanceissues also emerged.Participantsproposed setting asideaportionof the5%communityrevenuesharetosupportelderlyresidents andother vulnerable groups.Callsweremadeforexpeditedland titling and theformalization of communitylandmanagementcommitteestoreduce disputes andstrengthen tenure security.

• 232.Speakersfurtherrecommendedtheappointmentofacommunityliaisonofficertoserve asastructuredcommunicationlinkbetweenGulfEnergyandlocalstakeholders,enhancing transparencyandresponsiveness.Theyalsoadvocated for the establishmentofaHost CommunityDevelopmentTrustFund(HCDTF) tomanage anddisbursecommunityfunds transparently.
• 233.Education and long-term social investment were alsoprioritized.Participants suggested thatcorporatesocialresponsibilityinitiativessupportscholarshipopportunitiesforstudents pursuingtechnical andvocationaleducationand training(TVET),intendingto strengthen local skillscapacity.Therewere additionalrequestsforinvestor-fundedDefensiveDriving Training(DDT)andHSEcertificationsforlocal drivers.
• 234.Finally,participants emphasized theimportanceofclear and equitablerevenue-sharing arrangements,advocating for transparent frameworks that reflect agreed national and communitybenefit allocations.They specificallyopposed theproposed increaseofthe cost recoverycapfrom65%to85%,arguingitwould significantlyreduce theprofitpool availableforcommunitybenefits.

4.1.9 PublicParticipation atKatilia,TurkanaEast Constituency

OnFriday,6thFebruary2026,theJointCommitteeconductedapublichearingforumatKatilia inTurkanaEast,engagingelders,rofessionals,youth,women,andpersonswith disabilities. Discussionscenteredonsecurity,socialprotection,infrastructuredevelopment,localeconomic participation,andsafeguardsasfollows:

• 235.Securitywas raised as an ongoingconcern,with participants emphasizing the need for strengthenedprotectivemeasuresto safeguard communities andinfrastructurelinked to projectactivities.Speakersnoted thatastablesecurityenvironment is essential to sustaininglivelihoodsandensuringthesmoothimplementationofdevelopmentinitiatives. Participantsspecificallyrecommendedtheestablishmentofaformalcommunicationand engagementframework topreventmisinformationanda structureddisputeresolution mechanisminvolvingthecompany,theAssociation,andcommunityleaderstoaddress emergingissuesamicably.
• 236.Socialwelfare and inclusionfeaturedprominentlyin the discussions.Participants called fortargetedemploymentopportunitiesforvulnerablegroups,includingorphans,toensure thatproject-relatedbenefitsreach those most in need.There was a strong callfor the deliberateinclusionofqualifiedyouthandwomenindrivingandlogisticsopportunities,in linewithcorporatesocialresponsibilityprinciples.
• 237.Wateraccesswasalsohighlightedasapriority,withcommunitymembersrequesting thatGulfEnergysupportthedrillingofboreholesto addresspersistentwatershortages and improvelocalresilience.Thiswaspresented aspartofabroaderneedforcollaboration on infrastructuremaintenance,particularlyforroads affected byheavy companyvehicles,to safeguardlocalcommunities.

238. Concerns were raised regarding displacement arising from project activities. Participantsemphasizedtheimportanceofacomprehensiveresettlementactionplan,fair compensation,and transparent consultationprocessestoprotect affected households.They advocatedfortimelyandfairpaymentforallservicesandsuggestedthatanymandatory assessmentcostsforlocaldriversberecovered throughreasonable salary deductionsto avoidexcludingfinanciallyconstrainedresidents.

• 239.Corporate social responsibility (CSR) initiatives were discussed in relation to infrastructure development and scholarship programs,with participants encouraging investments that support long-termsocial andeconomic advancement.Participantscalled forthe constructionof theLokichar-Kapedo-Lokori-Marigat-Nakuru corridor anditsuse capacity-buildinginitiatives,ncluding defensivedriving,healthandsafety(HSE),andfirst aid trainingforlocalpersonnel toenhanceprofessionalism andsafety.
• 240.Local content participation remained a priority,with participants calling for deliberate measures to ensure employment and procurement opportunities benefit residents.They requested thatrecruitment exercises be conductedwithin the sub-county and thatlocal vehiclehireandlogisticsservicesbeprioritizedoverexternalsources.
• 241.Finally,community members proposed that project implementation be subject to reviewfollowingPhaseI,allowing stakeholderstoassess impacts and address emerging concerns.They advocatedforthedevelopmentofaformal MemorandumofUnderstanding (MoU) between Gulf Energy and local associationstoguiderecruitment,logistics support, and engagement throughout theproject lifecycle.

4.2UasinGishuCounty

The Joint Committee conducted public participation in Eldoret city,Uasin Gishu County on 13thJanuary2026with engagements startingwith a courtesy callto the Ofice of the Governor, where the Committeewasreceivedby andmetwith theDeputy Governor andother County Officials.

• 242.A townHall Meetingwas held inEldoret city,in recognition ofthe County's strategic position alongtheproposedcrudeoil evacuation corridor.During thepublicparticipation sessions,stakeholders drawn fromcountygovernment,nationalgovernment agencies,civil society,academia,thebusiness community,andresidents fromUasin Gishucountyraised severalissuesrelatingtoinfrastructure capacity,public safety,environmentalprotection, andsocio-economicimpactsoftheprojectasfollows:

4.2.1 Submissions by the Members of the Public

On 13 January,2026, the Joint Committee conducted a public hearing forum at Town Hall Eldoret City,UasinNgishu County,where Members of the Public presented thcir viewson the proposedFDPandPSCasfollows:

• 243.Mr.CyrusLetting from the County Government of Uasin Gishu raised theneed for counties alongthetransport corridortohaveregulationstogovern truckoperations and also requested thenationalgovernment tohelpregulatethetruckssince countylaws cannot operateinisolation.He alsonoted that the countyhasa fire emergencydepartmentwhich willbe equipped tobeabletorespondin caseofemergencies,however henoted that the countywill needsupportofthenationalgovernmenttodealwithoil spillswhichthecounty maynot havecapacitytohandle,especiallylarge-scalespills
• 244.He further noted that theFDP tend to only consider upstreamrevenue sharingand considersonlyTurkana County leaving out countieslike Uasin Gishu whichispart of the transport corridor.Inaddition,Mr.Cyrus also noted thatcountylevel damages arenot coveredintheFDPandhence theneedforthesame tobecovered.

• 245.Mr.Barno,who is the thematic Chairperson on environment,climate change,energy andagricultureintheUasinGishu countycivilsocietynoted thattheprojectwillincrease risks ofpollution and spillage and hence the needforallocations to curb the same.Other membersofthecivil societypresentnotedtheneedforcommunitysensitizationon the projectandtheassociatedrisksaswell asensuringthatcommunitiesaffectedbyroad construction arecompensatedintime.
• 246.Mr.MarkfromKapseret Constituencystressedonthe socialimpact that theprojectwill haveincludingincreasedrisks of diseases.In addition,Mr.SmithNamjohi sought toknow howtheproposedroadinterchangeswithinEldoret Citywill bedone consideringexisting urban andspatialplans.Hehoweveremphasized theneedfordesignatedtruckroutes, bypasses,andinterchangestodivertheavyvehiclesawayfrom thetownandcalledfor alignmentof theFDPwithexistingcountyandcityphysical andspatialplanningto avoid unplanneddevelopmentandcongestion.
• 247.Mr.Smithalsonotedthatlocal contentandyouthemploymentshould beconsidered, noting that graduates from Uasin Gishu who are trained in petroleum engineering, environmentalsciences,logistics,andrelatedfieldsshouldbeabsorbedintotheproject.
• 248.The business community,through the Kenya National Chamber of Commerce and Industry(KNCCI),called for structureddisseminationofinformationon procurement opportunities,public-privatepartnerships,and transit-related commercial activities to enablelocalbusinessestoparticipateeffectively.
• 249.Onpublicsafety and health,Mr.Korir KennedyfromMoiben Constituency,raised concerns regarding increased accident risks,respiratory health impacts,and emergency preparedness and calledfor strengtheningoffirefightingandspill response servicesto deal with anyeventualities thatmay arise.Participantswere especiallyconcerned about oil spillagerisknotingthat thereisnolocalizedoil spillageresponseinEldoretcity.
• 250.Mr.KorirKipronofromMoi Universityquestioned thereliance onroad transportfor crudeoil,notingthattruckingappearedinconsistentwithbestinternational practicegiven Kenya'sroad capacity constraints.He called forthe completion ofrail transport and,in the longer term,explorevalue addition optionssuch asrefiningtomaximise domesticbenefits.

4.2.2Remarksbygovernment agencies duringthe townhall meeting

• 251.ArepresentativefromKenyaNationalHighwaysAuthority(KENHA)observed that thisisnotthefirsttimeKenyaistruckingoil toMombasanotingthatEarlyOilPilot Scheme(EOPS)whichinvolvedonlyeighttrucksperdaystillhadanimpactontheroads implyingthatincreasednumberoftrucksduringwoulddefinitelyhaveanimpactonthe roads.Henotedthatmostof theroadsthatwillbeusedeitherneededupgradingorare currently undergoing construction.In addition,he emphasized that the challenge that KENHAanticipatesasaresultoftheprojectisincreasedroadmaintenancecosts.
• 252.EngineerDavidfromKURAonhispartreiteratedtheircommitmenttoenhancing urbanmobilityinEldoretCityandnotedthatinordertoaddressthechallengeofcongestion within theCity,KURA hasidentified severalringroads whicharecurrentlyunder procurementstage andwill be done to ease trafficcongestionwithin the city aheadof the truckingofoilthroughEldoret.
• 253.AnofficialfromtheNationalEnvironmentManagementAuthority(NEMA)also addressedenvironmentalconcernsrelatingtopotentialoil spills,leakages,andimproper

washingofoil trucks.Hereferred to theEnvironmentalManagementand CoordinationAct (EMCA) and the Articles 42 and 69 of the Constitution on protection and conservation of theenvironmentbyallactorsincludingbycontractorswhoareobligatedtoprevent environmentaldamageandrestoreaffectedareasintheeventofspills.Onproperwashing of trucks,henoted that everypetrol stations arerequired tohave designated truckwashing facilities and the same will be regulated byNEMA following the"polluter pays"principle.

4.2.3KenyaRailwaysCorporation,EldoretRailwayStation

The committee also visited Kenya Railways Corporation (KRC),Eldoret Railway Station and was hosted by the Corporations officials led by theManagingDirector,Mr.PhilipMainga. The Corporationmade awrittenpresentation asfollows:

• 254.That,over the past year,the Ministry has been actively coordinatingwith the project operator(GulfEnergy E&PB.V.)andotherstakeholderstodevelopacomprehensive logistics framework thatmeets theFDP'srequirementsand timeline.GulfEnergy has engaged theMinistryofTransport andKRConaproposedevacuationplantargetingfirst oilexport by late 2026.Central to this plan is a high-capacity,multimodal transport corridor from Lokichar to Mombasa-combiningRoadandrail-to ensure safe,efficient crude oil evacuation.Specifically,theministryhas prioritized the critical upgrade of the Eldoret- Mombasa Meter Gauge Railway (MGR) and the procurement of specialized rollingstock(tankwagons and/ortank containers)forcrude oil transport.

255. UnderPhase1of theplan,crudefrom theLokicharfieldswill be trucked byroad(to the Kenya Petroleum Refineries Ltd (KPRL) export terminalin Changamwe,Mombasa. This is engineered tomanage the initial production output of~3,500 tons of crudeper day (25,0o0 barrels/day) in the first phase,and can seamlessly double throughput to~7,000 tons/dayasproduction scalesup.TheMinistryhasset an ambitious schedule tohave this corridorfullyoperationalbySeptember2026,well aheadoftheFDP'sgoaloffirstoilby end-2026,sothatinfrastructurereadinessdoesnotbecome abottleneck.

• 256.In Phase 2(2030 and beyond),Kenya will rely on a hybrid road-rail solution to evacuate crude oil.Duringthe subsequent production period(20,000barrelsper day),road tankerswillhauloilfromLokichartotheEldoretrailhead,whereitwillbeloadedonto trains for transport to Mombasa.This phased approach allows ramp up of capital investments in rail infrastructure.
• 257.The evacuation plan is operationally sound,combining road and rail modes to cover ~1200kmfromTurkana toMombasa.Thefirstleg(LokichartoEldoret,~300km)willuse road tankerstoafacility atEldoretICD,whichwill beupgraded as arail loadingpoint. Thesecondleg(Eldoret toMombasa,908kmsviaMGR)willmove crudeby train to the ChangamweKPRLterminalnearMombasaport.
• 258.It isprojected that approximately 100 trucks per day in a six-day trip schedule would berequired to move20,000barrels/dayofoil byroad alone.By leveragingrail for the longer distance,road traffic will reduce significantly.In fact,once rail operations begin, the need for long-haul trucking iscut dramatically-improving efficiency andreducing highway congestion.The Ministry,together with Kenya Railways Corporation (KRC),is ontracktorehabilitate andupgrade theEldoret-MombasaMGRline tohandlethis task includingimprovementstotrack,bridges,and signaling,aswell asacquisitionofsufficient locomotives and tankwagons.Thecorporationis also coordinatingwith theKenyaPorts siding atKPRL Changamweforcrudeloading/unloading).

• 259.The Corporationsubmitted that shiftingbulkcrude transportfromroad torailyields numerousbenefitsfor thenation's economy,safety,and environmentwhichinclude:
• i. ReducedRoadDamageandMaintenanceCosts:Heavytruckscurrently accountforover60%of highwaydamage.Bymovingoil(andotherbulkcargo) byrail,thecorporationwill drasticallycutroadwearandtear,potentiallyreducing annual roadmaintenance expendituresby30-40%.These savings-outof an annualroadmaintenancebudgetof~Ksh70billion-freeupfundsforother publicservices.
• ii. EnhancedPublicSafety:Loweringheavy trucktrafficon ourroadswill significantly decreaseroadaccidents,congestion,andfatalities-potentiallybyup to20% according to projections.Rail is also a safer mode for hazardousmaterials likecrude oil,minimizing theriskof spills or catastrophic incidents during transit.
• iii. EnvironmentalGains:Railfreightproduces60-80%fewercarbonemissions perton-kilometerthanequivalentroadtransport.Byutilizingrail,Kenyaaligns withclimatechangecommitments(NationallyDetermined Contributionsunder theParisAgreement) and improve air quality.The crude-by-rail planwill cut carbon emissions substantially,supportingKenya'ssustainabledevelopment goals.
• iv. RegionalTradeandEconomicBoost:Strengtheningtherail corridoralsoboosts cross-bordertrade andregional integration,particularlywithUganda,South Sudan,and Ethiopia.Improved rail logistics will openupnorthernKenya-a historically marginalized region-by connecting local industries(e.g.agriculture, mining,livestock)tomajormarkets,therebycatalyzinglocalenterprise,job creation,andsocio-economicinclusion along theroute.
• 260.In summary,the corporationnoted that therail-based evacuation plan is a triplewincuttinginfrastructure costs,improvingroad safety,andprotecting theenvironment-all whilestimulatingeconomicgrowthinlinewithKenya'sdevelopmentagenda
• 261.The Corporationnoted that,lookingbeyond the initialexports,theMinistry has already turned its focus to Phase 3(2030 and beyond),which centers on expanding rail infrastructure tomeet increased production andregional connectivityneeds.
• 262.Theyinformed theCommittee thataJointTechnicalCommittee-comprisingthe MinistryofTransport,KRC,theMinistryofEnergy&Petroleum,and theprojectoperator hasbeenformed-toevaluatethefeasibilityofextendingrailserviceclosertotheoilfields beyond2030.Thiscommitteeisexploringthe optimalrailextensionfrom theexisting MGRterminus(currentlyEldoret)up toLokicharin Turkana County,to directlylink the oil production areawith thenational railwaygrid.Options underreviewincludeconnecting thenewlineinto themainnetworkatEldoret orvia abranchfromKitale,depending on engineeringandroutingconsiderations.
• 263.Thegoalis tohaverailaccessin Turkana(when dailyoutputisprojected toreach Mombasa.Thiswilleliminatetheneedfor long-distancetruckingof crudeby that stage Indeed,failure toextend therail toSouthLokicharwouldforcerelianceonanimpractical Governmentiskeento avoid throughproactiveinfrastructureplanning.

• 264.The corporationsubmitted that aspart ofPhase3preparations,detailedrouteplanning studies areunderway.One such study(ProposedSGR/MGR Line toNakodok) has outlined apotentialmeter-gaugerailwayalignmentfrom theNakururegiontoLokicharandonward toNakodok at theSouth Sudan border.Theproposed alignment spans approximately 640 km from the Rongai area (west of Nakuru) through Lokichar to Nakodok,largely parallelingexistingroadcorridors(such astheAlhighwaythroughLodwartotheborder).

265. Crucially,the analysis indicates that while certain stretches (e.g.the first ~100 km betweenRongaiand the LakeBaringo area) traverse hilly terrainthatmayrequiretunnels ormajorbridges,themajorityoftheroutebeyondthatpointisrelativelyflatall thewayto Nakodok.By adopting a meter-gauge design-which allows a ruling gradient of up to 2.5% (steeper than the1.2%for standardgauge)-engineers can navigate the topography with minimal tunnelingwhilestill adheringto safegradientlimits.Thisflexibilityin alignment significantlyreduces construction complexity andcost.Preliminaryestimatesfrom the studyput theconstructioncostofa 640kmMGRextension(withlimitedtunnels)at (SGR) linewould require gentler grades and more extensive earthworks/tunnels,driving costsinto the~Ksh300+billionrange.

• 266.The ongoing feasibility assessments are examining these options in detail-weighing cost,engineering challenges,andfuture demand-to inform agovernment decision on the Phase3railexpansion.Notabiy,thisrail extension conceptrepresentsa strategicshiftfrom earlier plans to build a crudeoil pipeline toLamu (estimated atUS 1.5 billion,or~Ksh 193billion).By leveraging andextendingourexistingrail network instead,the corporation aims toachieve amore cost-effective,flexible,andmulti-useinfrastructure solution that notonlyservestheoilprojectbutalsointegrateswithbroadernationaltransportnetworks.

267. One ofthemostexcitingaspectsofthisprojectis theopportunityto develop the Lokichar-Eldoret- Mombasa corridor as a multipurpose freight corridor,catalyzing broader economicdevelopmentinKenya'snorthwesternregion.Whiletheprimaryimpetus is crude oil evacuation(approximately1.2-1.3million tonnes of crudeperyear in Phase 1, potentiallyscalingto~2.5million tonnes atpeakproductionof50,000barrels/day),the Turkana-West Pokot corridor holds substantialadditional freight potential.Studies estimate2.75-3.3milliontonnesperyearofothercommoditiescould betransported along this corridor,improving the viability and impact of the railway.Key non-oil freighit projectionsinelude:

• i. Clinker(WestPokot CementPlant):~2,000,000 tonnes/year.Amajorclinker plant in West Pokot is already operational,receiving coal andproducing bulk clinker/rawmaterial for onward supply tocementmanufacturers-cargo thatrail canmoveefficiently tokeyconsumptionmarkets.Thiswill supportexpansionof Kenya's cement industry,reduce reliance on imports,and unlock an estimated regionalexportpotentialofaboutUSD200million.
• ii. Cement(FinishedProduct):500,000-800,000 tonnes/year.Bagged/bulkcement fromlocalfactoriescanberailedtoconstructionmarketsdomesticallyandin neighbouringcountries,loweringbuildingmaterial transportcosts.
• iii. EssentialImports(Fertilizer,Machinery,Consumer Goods):100,000-200,000 tonnes/year.Therail linkprovides areliable,lower-cost supply line for critical importsintoremote northernKenya(andevenSouthSudan),supportingagriculture andcommercein theseregions.
• IV. Agricultural Produce(Staple Crops):50,000-100,000 tonnes/year.Improved rail logisticswill helpfarmersinTurkana,WestPokotandsurroundingareasbring maize,pulses,and other staples to market.Faster,cheaper transport reducespost

harvest losses and enables larger- scale agribusiness investment,improving food security.

• V. LivestockandMeatProducts:50,000-100,000 tonnes/year.Thenorthwestern region'spastoralistcommunitieswillgainaccessto.formalmeatmarketsvia refrigerated rail wagons.Livestock can be transportedmore humanely and processedmeatcanreachurbanmarkets orportsforexport,addingvalue tothe livestockvaluechain.
• vi. Minerals & Construction Aggregates:~30,000-60,000 tonnes/year.The region's deposits of minerals (like gypsum, salt) and construction materials (sand, gravel) can bemoved in bulkbyrail for useinnationalinfrastructureprojects or export,whichisfarmorecost-effectiveforheavy,low-valuecommodities.

3. 268.In total,thesenon-crudegoodsrepresent an additional=3million tonnesperyear of freightthatcouldflowon theLokichar corridor.Bydiversifyingthecargobase,therail line'sutilizationandrevenuearesecuredwellbeyondtheoil sectoralone.Thiswill spur local industries,encourage investments(e.g.in cement and agriculture),and ensure the communitiesalongthecorridorderivelong-termeconomicbenefits.TheTurkanacorridor, therefore,isnotjustapetroleumexportroute-itwillevolveintoabackboneforregional commerce,carrying goods in both directions(for example,bringing imports and relief 4. 269.Importantly,theMinistry'seffortsonthisproject align closelywithKenya'shigh-level policyframeworksanddevelopmentgoals.KenyaVision2030identifiesrobust transport infrastructureasacriticalenablerofeconomicdevelopment.Infact,Vision2030setsan ambitioustargetforexpandingrailwayfreightcapacity-aimingforrail tohandle50%of portcargo(about25milliontonnes)todriveindustrialization. 5. 270.TheLokichar-Mombasacrudeoil corridorisaflagshipexampleofexpandingrail's roletospurgrowth,directly supportingthisVision2030objective.Likewise,ourfocus on modernizingandextendingtheEldoret-MombasaMGRcorridorfulfillskeygoalsofthe KenyaRailwaysStrategicPlan2023-2027,whichprioritizesrevitalizationofthemeternoted thatthey areimplementingtherail sector strategytopromote cross-border tradetheTurkana oil rail corridorwill doexactly that,improvingconnectivity withUganda, SouthSudanandbeyond. 6. 271.Furthermore,this initiative feeds into the governments Bottom-Up Economic TransformationAgenda(BETA)and Medium-Term Plan priorities.BETA highlights infrastructureandlogisticsdevelopmentasafoundationforjobcreationandequitable growth.Theinvestments inrail and road fortheTurkana oil project will create jobs(during constructionandoperation),boostcommerceintheNorthRiftregion,andensurethateven remote communities like Turkana are better integrated into thenational andregional economy-allcentraltenetsofBETA.TheCorporationnotedthattheprojectexemplifies suchpolicyalignment asit simultaneouslyenablesanewpetroleum exportindustry and advanceslong-termnationalgoals underVision2030,BETA,and sector strategicplans. TheMinistrywill continue to ensure policy coherence andwill report onprogressso that Parliamentandthepubliccantrackhowthisprojectcontributestoourdevelopmenttargets. 7. 272.Inconclusion,theCorporationreiterated theMinistryofTransport'sfull commitment tothesuccessful,sustainable,and timelyimplementationoftheSouthLokicharFDPand PSCspromisingtoremain solution-oriented andproactive,workinghand-in-handwith allrelevant government agencies and stakeholdersto deliver thenecessary transport

infrastructure and services on schedule.Through continued cross-government collaboration,diligentinfrastructure execution,andfaithful adherence to theprinciples of publicparticipation and transparency,theynoted that they areconfident thatKenya will achievefirstoilby2026inamanner thatissafe,efficient,andmaximallybeneficialtothe people.

4.2.4 KenyaPipeline Company,Eldoret Terminal(PS27)

The Joint Committcevisited theKenya Pipeline Company(KPC)Eldoret Terminal(PS 27) on 13January2026 andwasbriefedon theterminal'soperations,infrastructure,capacity,and strategicrelevance to nationalpetroleum logistics.During themeetingKPC submitted as follows:

273. Kenya Pipefine CompanyLimitedwasestablishedin 1973and hasover52years of experience in petroleum transportation and storage,contributing to regional economic development.TheEldoretTerminal commencedoperationsin1994andservesbothlocal andexport markets.The terminal handlespetroleum productsincludingMotor Spirit Premium(MSP),AutomotiveGasOil(AGO),JetA-1,and IlluminatingKerosene(IK). 2. 274.The terminal hasa staff complement of148employeesanditscore mandateis the storage and dispensingofpetroleumproducts toroad tankers and rail wagons,aswell as the quality testingof fuel for customers.Inaddition,the terminal hosts a 96-corefibre optic cable,which is leased to service providers,and supports capacity building through the Morendat Institute of Oil and Gas(MIOG)-Eldoret Campus,which offers trainingin the oil and gas sector. 275. The Committee wasinformed thatKPC operates an extensive pipeline network comprisingapproximately 1,792kilometers of pipelineinfrastructure.Thenetwork includes several pipeline lines ofvarying diameters and lengths,including a new 20-inch line(Line5),alongside existing14-inch,10-inch,8-inch,and 6-inch lines. 276. Mainlineflowcapacitieswerereportedas120cubicmetresperhourforLine2and420 cubicmetres per hour for Line 4,supporting efficient product movement across the network. 277. The Eldoret Terminal has a total storage capacity of approximately 48,000 cubic metres,distributed across multiple tanks for differcnt products.This includes storage for MSP,AGO,Jet A-1,IK,slops,and associated operational volumes.The terminal is equippedwithmultipleloadingmeterstofacilitateproductdispatch. 278. Operationally,the terminalruns 24-hour mainline operations and 16-hourloading operations,with an average throughputof 8,400cubicmetres per day,translating to approximately350 trucksperday.Thehighestrecordeddailythroughputattheterminal was 11,800cubicmetres. 7. 279.The Committee was briefed on the terminal's throughput performance and customer base as at December2025,indicating sustained utilisation of thefacilityin servingboth domesticandregional markets.TheEldoretTerminalplaysakeyroleinpetroleumsupply towesternKenyaandexportmarketswithintheregion. 280. During themeetingKPC identified key opportunities that it intends to leverage, including the opportunity of expandingmarkets,strategicgeographic location,adequate staff capacity,existing infrastructure withroom for expansion,and strong stakeholder

goodwill.At the same time,itwasreported that the terminal faces operational challenges, including:slowclearanceof trucks,storage capacity constraints,linecapacitylimitations, andtheimpactofdynamicregionalgeopolitics.

• 281.KPC'sEldoret terminalcommentsonTurkanaOil-Thecommitteewasinformed that KPCwasnotdirectlyinvolvedintheEarlyOilPilotSchemebutwereindirectlyinvolved throughKPRL,noting that asa terminal they have notbeen involved.
• 282.OnKPC'sEldoretTerminal involvementinTurkanaOil-TheCommitteewas informed thatKenyaPipeline Company (KPC)was not directly involved in theEarly Oil PilotScheme(EOPS),and thatanyinvolvementwasindirectthroughtheKenyaPetroleum RefineriesLimited(KPRL);consequently,theEldoret Terminalitself hadno directrole in thepilotoperations
• 283.During the meeting the Committee inquired on the possibility of using the decommissioned pipelineinfrastructure such as theMombasa-Nairobi pipeline(line1) to transportcrudeoil.Itwasclarified thatthepipelinehadbeendecommissioneddueto technicallimitationsandendofusefullifewhichisestimatedat25-30years,andis thereforeunsuitableforcrudeoiltransportation.Theyhowevernotedthatsome componentsofthe facilityremain serviceable andcould berehabilitated,subject to budgetary provision.
• 284.On the preparedness torespond tooil spillages,KPCindicated that it possesses the requisite technical capacity and institutional experience to manage such incidents effectively.
• 285.TheCommitteewas alsobriefedonpotential logisticsoptions at theEldoret Terminal, includingthepossibilityof utilizingthefacilityforinterimstorage and loadingofcrude oil ontorail wagons.KPCindicated thatthe Terminalcould support organizedloading operationsforonwardtransportationbyrail.

4.3WestPokotCounty

The Committee also conducted public participation inTurkwel,WestPokot County on 15th January2026,whichisacritical areafortheproject asitisproposed tohost the abstractionof waterfromRiverTurkweltoprovidemake-upwaterrequiredforoilproductionactivities.The Committeereceivedpresentationsfrom thefollowingstakeholdersduringthepublichearings:

4.3.1 GulfEnergy

• Mr.Bethwel Sang'representing GulfEnergy during the publichearings submitted that: 286.OilexplorationinSouthLokichar,Turkanabegunin2010.Heexplained thatfor the gulf tocommence production of oil,the Companyrequires a Production Licence. Consequently,the Companyisrequiredby lawtosubmit aFieldDevelopmentPlanwhich shouldcontaindetailsonthevalueoftheoil,mannerofevacuationandtransportationof theoilandalsohowthecontractorshallcomplywiththeenvironmentallaws-requirements whichhesaidthecompanyhasfulfilledandsubmittedtheFDPwhichisnowbefore Parliament;
• 287.For theoiltobeevacuatedfrom theground,waterisrequired toreplaceitinequal measure.Gulfenergy exploredpotential sourcesofwaterfrom theregionincludingLake Turkana,which is aprotectedUNESCO,drillingofboreholes and Turkwel dam.Afterindepthanalysis,itwasfoundoutthatpipingwaterfromTurkwel Damwasthemostfeasible

optionofthethree.ItwasthenagreedthattheNationalGovernmentwoulddevelopa90km pipelineofwater toLokichar and Gulfwouldpayfor thewater usinga commercial tariff determinedbythegovernment.

• 288.To balance thewater needs ofLokichar Oil Exploration and thecommunity consumption,thenationalgovernmentwill developthreewaterpipelinesfromtheTurkwel Dam;oneraw-waterpipeline that is dedicated to theLokichar Oil Exploration,onerawwaterpipelineforirrigationinbothTurkanaandWestPokotCounties,andonethatwith treatedwaterfor domesticconsumption byresidentsofbothTurkana andWestPokot Counties.Theareasofirrigationwillbedetermined bytheNationalIrrigationAuthority whilethewaterpointsfor treatedwaterwillbedeterminedbytheNorthRiftWaterWorks DevelopmentAgency.

289. Oilcannotbeevacuatedwithoutwaterhencethereisneedforcollaborationbetween Turkana CountyandWest Pokot County; 290. Oilisanaturalresourcethuswithrespecttothedistributionofroyaltiesinlinewiththe PetroleumAct,Cap.308,thenationalgovernmentwouldget75%,thecountygovernment 20%andthelocalcommunity5%;

• 291.Once the Field Development Plan (FDP) is approved by Parliament, the evacuation of oilfrom Lokichar,Turkana would commence.Additionally,any land issues were being dealtwithbytheNational Land Commission.

4.3.2NationalIrrigationAuthority

Eng.Felix Shiundu representing theNational Irrigation Authority during the public hearings submitted that:

• 292.TheTurkwel damwasnot supposed tobe used for theproductionofelectricity only but for theirrigationof60,000acresintheregion.That,theAuthorityhas71irrigationprojects inTurkana County;

293. Waterfrom theTurkwelDamwassufficienttosupply theLokicharOil Exploration project,irrigate the area,provide domestic waterforconsumption andprovidewater for livcstock.The irrigation watcr project will irrigate the arca using the Public Private Partnership (PPP) model with monies from the Infrastructure Fund.Additionally,that sprinklers and not furrowswould beused to irrigate the area;

• 294.The treated water pipeline would have six (6) water points that would be used to distributewatertothelocal communitywhile2,000acresoflandwouldbeirrigated,1,000 acres inWest Pokot County and 1,0o0 acresin Turkana County;and
• 295.The irrigation areas in the Countywereyet tobe determined for the 60,000 and 2,000 acresrespectively.The designswereyet tobe developedbut the decisionwould bebased onscienceconsidering thesoilcondition and theneedtoensurethatwaterflowswith gravity.Further,that the six water points were yet to be determined but would be determined by the communityand thewater pipes tobe usedwould depend on the local population in the area.In addition to the contributionsmadeduring thepublicparticipation with thelocals,theNationalIrrigation Authorityalsosubmittedwritten submissions as follows:

• PokotandTurkana Counties.Theclimaticcondition ofthetwocountiesisclassifiedas arid andsemi-arid(ASAL)wherecropproductionhastobethroughirrigated agriculture.
• 297.Due to the unreliable rainfed agriculture,communities in the two counties rely predominantly on pastoralism as themain source of livelihood.Thisoverrelianceon livestockfarmingleadstoconstraintonthepasture andwater sourceswhichfuels conflicts within the Turkwel river basin.The existing community scale schemes developed along the Turkwel riverine face challenges such as siltation,unstable intakes and livestock conflicts.Thismakes the existing surface irrigation schemes unsustainable.
• 298.The Governmenthas thereforeembarkedona sustainableirrigation development program within theTurkwel river basin to diversify the economic activitieswithin the basin.Through adoptinglargescale andmodern irrigation technology toimprove onwater useefficiency andproductivity.
• 299.The Turkwel-Lokichar Transmission Line:The Turkwel Dam will be the source for water forproject Oil Kenya requiring16,534m3/day for oil extraction.A separate pipeline will be provided to conveywater for domestic and irrigation purposes amounting to17,806m3/dayforcommunitieslivingalongthepipeline.
• 300.Thepipeline isaligned todeliverwaterbygravityfromtheTurkwel dam andwill traverse the various centres as follows;Lorogon,Kaputir,Kalimung'orouk,Lokichar, Kamarese andKodekode.Thisis outlined infigure 1and 2overleaf;

Figure7:Turkwel-LokicharTransmitionPipeline

Makelp Water Pipcline Ptotile.

Figure8:Turkwel-LokicharTransmitionPipelineAllignment

• 301.Based on the study carried out by KIRI Consult Ltd the pipeline will have six (6 No.) offtakepoints to serve the communitiesresiding along the pipelineroute.
• 302.The project targets to develop irrigation infrastructure covering 2000 acres to be apportionedequallybetween thetwocommunities.Thefarmswill belocatedwithin the proximityofthepipelinetominimizeheadlossesandoptimizewater useefficiency. Specificzoneswithin thefarmswill bededicatedforhighyield topilotfodderproduction.
• 303.The community will be trained in agronomic practices such as croprotation toimprove productivity andmanage diseasesfor contractedfarming.
• 304.Lower Turkwel irrigation project:The proposed LowerTurkwel irrigation is located on theTurkwel RiverandMalmateriveron theboundarybetweenWestPokotandTurkana Counties at approximately 155'29.69"N,35°21'37.30"E.The expansionof Lower Turkwel for irrigation scheme project will contribute 59,882 acres requiring approximately 21.5 m3/acre/day.The project will integratc 10,000 acres small to medium holder to 49,882acrelarge scale irrigation.
• 305.The target agricultural enterprisesprioritisereductionof Kenya'sfood deficitnamely sugarcane,wheat,pasture,cotton,andfruits,aswell asbeans andpulses as therotational crops.

Figure9:LowerTurkwelDamIrrigationCommand areas

306. Environment and Social Safeguards:An Environmental Management Plan during theimplementationwillputinplacemeasuressoastoprotectthetwocommunitiesfrom anyundesired impacts asfollows; 2. (a)Boundary conflict between West Pokot and Turkana County at the existing countyboundarywitheachcommunitystatingwheretheassumedboundary was locatedealier. 3. (b) ConflictforGrazing areas:both communitiesrelyon pastoralismmainly nomadicpastoralismbeingon theborder betweentwocounties thereare conflictsofgrazing areas. 4. (d)There are approximately 52irrigation schemes along the Turkwel river averaging at19,541acresofwhich11,600acresare developed,owned and maintained by the community mainly.Some are notfunctional due to high siltation fromthe riverandinadequatemaintenancecapacityfrom the community. 5. ()IrrigationschemesdevelopeddownstreamofTurkwel dam.Turkwel dambeing on theWestPokot County and theirrigation schemesinTurkana Countyhas ledtoaperceptionofBiasthatdevelopmentprojectsonlyfavourTurkana CountyyetwaterflowsfromWestPokot. 6. (e)Theproposed irrigation areais denselyvegetated thus a needfor bush clearing. Thiswill affectbiodiversity,animal movementcorridorandSoilerosion 7. 307.Thedevelopmentof sustainable irrigation systemsin Turkana andWestpokotwill require collaborative approach to address thementionedchallenges as follows; 8. (a)Theclear demarcation of the twocounties boundary toaddressboundary conflictsinvolvingallrelevantministries. 9. (b) Conflictforgrazingwill be addressedbyintroductionofspecificfodder productionzonestargetinghighyieldingfoddercropstobeusedduringthedry seasons. 10. ()Equitabledistributionofirrigationinfrastructurewithin the twocountieswill address thePerceivedBiasondevelopmentofirrigationschemesdeveloped downstream of Turkwel dam infavour of Turkana County.

• (d)Rehabilitationoftheexisting52irrigation schemesalongtheTurkwelriver to improveontheirsustainability.
• (e)A comprehensive environmental managementplanwill be developed to address the negative environmental impacts by theprojects existingenvironmental ecosystem.
• 308.The proposed irrigation development will result into sustainable agriculture,improve foodsecurity,andreduceoverreliance onlivestockas a sourceoflivelihoodforthetwo communitics.This is critical in ensuring that project oil Kenya is implemented while managingthesocial and environmental concerns.

4.3.3NorthRiftWaterWorksDevelopmentAgency

The Chairpersonof theNorth RiftWaterWorks DevelopmentAgency,Prof.John Lonyangapuosubmitted that--

• 309.The Turkwel Multipurpose dam project in West Pokot County,was initially meant to generateelectricityandirrigateover60,o00acresspreadacrossbothWestPokotand Turkana Counties.However,whenopenedin the early1990s,thelocals didnotenjoy any benefits since theelectricitywas evacuated toUasin Gishu Countywhile theirrigation projectwas abandoned.Itwasnotuntil themid-2ooosthatthe surroundingcommunityfirst benefitted from electricity distribution but sadly,the irrigation project is yet to be commenced.
• 310.As regards the distribution of oil proceeds under the Petroleum Act,Cap.308,the nationalgovernment is entitledto75per cent,thecountygovernment20per cent,and the local community 5per cent.That,given the strategic role of the Turkwel Dam as the proposed sourceofmake-up water for petroleumoperationsin Lokichar,West Pokot communitiesarealsoaffectedbytheprojectandshouldthereforeshareinthelocal community royalty benefit.Itwas furtherproposed that the current framework,which limits community royalties to the host county where the resource is located,maynot adequatelyaddresscross-countyimpacts and contributionsespeciallyWestPokotwhich is the source ofwater.In thisregard,it was observed that negotiations be undertaken betweentheaffectedcountiesand thatthePetroleumActbereviewedtoprovideforbenefit -sharing arrangements that recognize all impacted communitiesincludingWestPokot County.
• 311.With respect to irrigation, it should be clear which areas would be irrigated in West Pokot County andTurkana Countytoensurebothcountiesgetafair shareof development and toreduce conflict since thisisaborderregionwithhistorical cases ofconflictsfrom resourcesharing.Further,thereis aneed toincrease thenumberofwaterpointsfortreated waterforbothcountiestoensurepeaceprevailsin theregion.

4.3.4TheLocalCommunity

The localcommunity submittedasfollows-

• 312.The water supply infrastructure should be improved ensuring water is channelled through Lonyangalen,Lorogon,Nasacha,Kases and Tagaiwa villages;

313. Gulf Energyshouldprovide scholarships to theyoungpeoplein theregion to study abroad aspreviously donebyTullow Oil inTurkanaCounty; 314. With respect toirrigation,areas within the region including thevillages should be includedintheirrigationplan;

• 315.The local communityought tobenefitfrom theproject throughringfencingof employmentopportunities,contractopportunitiesandscholarshipopportunitiessincewater ismorevaluablethanoilhence thelocalcommunityinTurkanaandWestPokotoughtto benefitequally;
• 316.Healthfacilities shouldbe developed andwellequipped due tohealth hazards that could arise from accidents,oil spillages and air pollution.The health facilities should be developedin all centers and towns along theKainuk-Kapenguriahighwaywhere theoil truckswill bepassing.They alsorequested that Turkwel Health Centre berenovated and equippedwell;
• 317.VillagesinWestPokotCounty shouldbenefit from thewaterpipeline hence theneed for clarityon the specific areas thatwouldbe covered in the60,000 acresand2,000 acres irrigationproject.Further,thatthewaterpipeline shouldnotfollow theroadsbutberedirectedtowardsWestPokotvillages;
• 318.Truckrestingpoints should beconstructed along theKainuk-Kapenguria highway to minimisetrafficaccidentsduetotireddrivers.Also,thiswill allowthecountygovernment tocollectadditionalrevenuefromthemanagementofthesetruckrestingparks.
• 319.Gulfenergyoughttofurther engage thelocal communityinordertoensure that there isclarityasregardsthevillagesthatwouldbenefitfrom thewaterpipeline;and
• 320.Employmentoflocalswithin theaffected areasoughttobeprioritizedwithatleast5% beingfromtheaffectedlocalcommunityinWestPokot County.Thatthereoughttobe fairnessinjobdistributioninordertoensurethatthelocalsfromWestPokotalsobenefit.

4.4TransNzoiaCounty

TheCommitteeheldpublichearingsinTransNzoiaCountyon14tJanuary2026togather viewsfromtheresidentsontheproposedSouthLokicharFieldDevelopmentPlanandthe associatedProductionSharingContracts.

The Joint Committeevisited the Governor's·Office andmet with different stakeholders, includingtheDeputy-Governor,CountyExecutive CommitteeMembers(CECs),Members of theCountyAssembly(MCAs)ledbytheDeputySpeaker,theBusinesscommunityrepresented bytheKenyaNational Chamberof Commerce,andotherstakeholdersincluding theKenya National Highways Authority(KeNHA)and theNational Transport andSafety Authority (NTSA).TheCommitteealsopaidacourtesycall totheCountyCommissioner,andlaterheld apublicmeetingattheKenyaRailwaysCorporationgroundsinKitale.TheParticipantspresent submittedtheirviewsasfollows:

• 321.Ingeneral,the stakeholderswere in supportof theproposal,expectingbenefits tothe countyintermsofemploymentandopportunitiestogeneraterevenue,butraisedpertinent questions on thewiderbenefits expectationsofthe TransNzoiapeople.In addition,the stakeholderspresentwereconcernedabouttheenvironmentaleffectsoftheprojectonthe county.
• 322.Thestakeholders submitted thattheyexpecttheCountytobenefitfromparkingfeesif truck stopsareprovided.However,theyrequested thattheroadsleading toKitalebe expandedtoaccommodatethetrucksandtheexpectedheavytraffic.Kitaletownishighly congested,and there is a need for more space toaccommodate trucks.They further emphasizedtheneedforarefineryinKenya,eitherinKitaleorTurkana,tocurbpotential truckaccidentsandavoidextratransportationandroadmaintenancecosts.

• 323.There was concern for increased traffic and road accidents inKitale,with the business community acknowledging the opportunities tomakemoney,but atthe cost ofriskof disasters and accidents.The stakeholders advocated foryouth employment and thelocal communitytobeengaged inevery activityconcerningtheproject.Further,theyrequested whether thecorporate socialresponsibility(CSR) activitieswould include businesspeople through the construction ofmarket stalls and business centers adjacent to truckparking facilities.
• 324.TheKeNHA on their part submitted that theKitale road is narrow and it will be expanded in due course,while at the moment, the urgency is to fix road repairs.The Authorityfurthersubmitted that theLesseru-KitaleRoad,amajorroad thatwillbeusedby the trucks,is under construction.Further,the entire route from Lokichar all the way to Mombasa is beingimproved,and infrastructure for truck parking facilities is already in place atMaili Tisa,Lokichogio and Lokichar.
• 325.The NTSA further submitted that there might be a potential increase in thenumber of accidentsintheareassincetheroadisnarrow.They advocatedforahybrid transportation systemwithbothrail androadtransporttohelptoeasetraffic.

4.4.1TransNzoiaTurkanaCommunity-DiasporaChapter

TheTransNzoia Turkana Community-Diaspora Chapter submitted awritten memorandum outliningkey concerns andrecommendationsregardingpetroleum development in Turkana County.The submission emphasized the need for inclusive, transparent,and sustainable resource development thatsafeguards communitylivelihoods,environmental integrity,and equitablerevenuegovernance.They submitted asfollows:

• 326.The community highlighted theimportance of local employment and skills transfer through clearly defined employment quotas, structured training programmes,and andfair compensationmechanisms for land access,resettlement where unavoidable,and livelihoodrestorationforaffectedpastoralistcommunities.
• 327.They emphasized the need for legallybinding CommunityDevelopmentAgreements (CDAs) to define social investment priorities,implementation timelines,and community paiticipation structures.In addition,the community advocated for independent and culturally appropriate grievance and dispute resolution mechanisms,as well as direct community participation in monitoring environmental, social,and employment commitments.
• 328.They raised concerns about environmental risks associated with petroleum development inaridandsemi-arid areas.Keyissuesincluded theprotectionofwater resourcesthroughstrictcontaminationcontrolsandcontinuouswaterqualitymonitoring. The community also emphasized measures to minimize land degradation,protect biodiversity andwildlife corridors,andrehabilitate disturbed land.Theyrecommended independent and periodic environmental and social impact audits beyond initial ESIAs, clear decommissioning and site restoration plans backed by financial guarantees,and alignmentofpetroleum activitieswithKenya'sclimate change commitments,including mitigation and adaptationstrategies.

329. Onfiscal andgovernancematters,thesubmissioncalledforclearlimitsandtimelines oncostrecoveryto avoidprolongeddelaysinpublicrevenuerealization.Thecommunity stressed theimportance oftransparent statetake calculationsandpredictablerevenue-

sharing arrangements benefiting Turkana County.Concerns were also raised regarding transferpricingandprofitshiftingrisks,witharecommendationforstrongauditpowersto preventtaxavoidance.

• 330.Additionally,thecommunityadvocatedforenhancedtransparencythroughdisclosure ofnon-commercially sensitive Production Sharing Contract (PSC) terms,regular public reporting,and clearly defined oversight roles for Parliament,the Senate,and County Governmentsthroughouttheprojectlifecycle.

4.4.2Ministry ofRoads and Transport on road readiness for oil evacuation

• 331.Therepresentativesfrom theMinistrysubmittedthatthenationalroadnetworkis advanced,improvingrapidly,andreadytosupportoilproductionlogisticsandevacuation fromLokicharto thePortofMombasa.Theyindicated thattherearetwoprimaryroad evacuationscenarios,withtheGovernmenthavingalreadymadesignificantinvestments along both corridors- many ofwhich are complete,and the rest are under active implementation.
• 332.Theysubmitted thatRoadevacuationreadinessisanchoredona simplefact:Lokichar isalreadyconnectedtothenationaltrunkroadsystem,andthetrunkcorridortotheCoast isundergoingsignificantstrengtheningandexpansion.
• 333.WithinTurkanaand thebroadernorth-westerncorridor,theGovernmenthasalready delivered criticalroad links and key bridge structures that enable safe,all-weather movement-ensuring thatoilfield logistics can connectreliably to thewider corridor network.
• 334.In addition,theprincipalnational trunk route linking theRift Valley toNairobi and onwardtoMombasaisbeingupgradedthroughmajor capacityandsafetyinterventionsensuringthatoncecrudereachesthetrunknetwork,itcanmoveefficientlytotheCoastand intothePortsystem.
• 335.TheMinistrypresented twomainroadevacuationscenariosthatcanbeimplemented, eitherindependentlyorinacomplementarymanner,dependingonoperationalpriorities, trafficmanagementrequirements,andoilevacuationvolumes.
• 336.Scenario1:Lokichar-Barpelo/MarichPass/Baringoaxis-Nakuru-NairobiMombasa.Itwassubmittedthatthisoptionuses theBaringoroutetoconnecttoNakuru and onward toNairobi and theCoast.Onwhythisoptionis strong,theministryprovided thefollowingreasons;
• i. Itoffers a lower-trafficcorridor over long stretches,whichisoperationally advantageousforpetroleumhaulage.
• ii: Itprovidesroute diversity,reducing dependenceon thebusiest sections of the Northern Corridor.
• iii. Itallowsbetterplanningforconvoying,incidentresponse,andpredictable travel times.
• 337.Alongthiscorridor,theGovernmenthasundertakenamulti-lotupgradingprogramme from theBarpelo-Tot-Sigor-MarichPassaxis,withcontractpackagesalreadyawarded andworks ongoinginkey sections.The overall intent isto secure a reliable,high-standard roadconnectionthroughthisaxisintoBaringoandonwardtowardNakuru.

• 338.On Operational considerations,given the terrain and gradients associated with MarichPass,theministrysubmitted thattheywill accompany thecorridorimprovements with strictsafety measures,including:
• i. Hazardous cargo safety standards,
• ili. Mandatoryvehicleinspectionsforbrakingsystems and tyreintegrity,
• ii. Speedmanagement,
• iv. Designated safe stopping points and emergency lay-bys,and
• V. Coordinated multi-agency emergency response arrangements.
• 339.Scenario2:Lokichar-Kitale-Eldoret-Nakuru/Nairobi-Mombasa:Thisoption routes evacuation through Kitale and Eldoret,linking into the established Northern Corridor spine throughNakuru and Nairobi toMombasa.Onwhy thisoption is strong,the ministryprovidedthefollowingjustifications;
• i. It benefitsfrom an established logistics ecosystem inEldoret,including services,
• ii. Itprovideshighoperational convenienceforfleetmanagement,fuel supply, repairs, and staging.
• ili. It connectswell tomajor corridor operations andsupportslogisticsscaling as evacuationvolumesincrease.

340. The Ministry submitted that the Government has implemented and continues to implement upgrading works along key links supporting this corridor,including: strengthening road sections connecting Turkana to the western highland's corridor; implementing majorworks around theKitale-Leseru axis;and ensuringEldoret circulation available.

• 341.Because this scenario integrates into the most active parts of the Northern Corridor,it requiresstrongcorridor operations,including:
• i. Dispatch schedulingtoavoidpeakcongestion,
• ii. Saferest-stopplanning,and
• ii. Axleload andcomplianceenforcement,
• iv. Traffie management and incident response coordination through the hightraffic spine.

342. TheMinistry submitted that both scenarios converge toward Nakuru and then move toward Nairobi and the Coast.Along thisspine,the Government isimplementingmajor corridorupgradesthatdirectlybenefitoil evacuationreadiness:

• i. capacityimprovementsontheRironi-MauSummitcorridortoreduce delays,enhance safety,and improve travel times;
• ii. Nairobimetropolitanbypasslinkages that allowfreighttobypassinner-city congestion andconnectefficientlytotheMombasaRoadcorridor;and
• iii targetedpavement strengthening,junctionimprovements,andsafety featurestosupportheavyfreightmovement.

343. TheMinistryrecognisesthatevacuationreadiness isonlycompleteifthefinalapproach into thePort systemisefficient andresilient.For thatreason,theministrynoted that they areimplementingmajorimprovements along the coastal gatewayroutes,notably: 1. upgrading andstrengtheningkey approachesfromMariakani through Mazerastoward Changamwe,

• ii. improvingjunctionperformance andcorridorcapacity,

• iii. strengtheningpavementlayerstowithstandheavyfreight,and
• iv. ensuringroad accessinto thePortofMombasaremainsefficient,safe,and predictable.

3. 344.BecauseEldoretis amajor logisticsnode underScenario2,theministrynoted that they aretakingadditionalstepstoensureevacuationtrafficdoesnotcreateconflictwithurban mobility and safety.Accordingly,the ministry is progressing planned improvements around Eldoret City,including bypass options thatwill:

• i. divertheavytrucksawayfromCBDtraffic,
• ii. reduce congestion and accidentrisk,and
• iii. providededicated circulation capacityforfreightandhazardouscargo.

7. 345.In conclusion,theMinistry assured the Committee that:

• i. Thenationalroadnetworkis advanced and continuouslyimproving,with substantial completedworks andmajorupgradesunderway.
• ii. Twoviableroadevacuationscenariosexist,offeringredundancyand operationalflexibility.
• iii. The corridorbackbone toMombasaisbeingstrengthened through targeted investmentsacrosstheRiftValleyspine,Nairobi bypassfunctionality,and the Coastportgateway approaches.
• iv. TheMinistrystandsreadytoimplementcorridor operationsmeasurescoveringsafety,enforcement,dispatch scheduling,rest-stopplanning,and emergencyresponse-toensure secureandefficientcrude evacuation.

12. 346.TheMinistrythereforesubmittedthatroadevacuationwillnotbeaconstrainttooil productionandevacuationfrom theLokicharBasin,and thatitispreparedtoprovide annexed project schedules,contract packages,progress percentages,and completion calendarsifrequired.

4.5LamuCounty

The Committee held public hearings in Lamu County on 21s and 22nd January 2026 having engagementswithmembersofthepublic andgovernmentagencieson theFieldDevelopment Plan andProductionSharingContractsforBlocksT6andT7inSouthLokicharBasin,Turkana Country.

4.5.1 Meetingwith the County Commissioner,Lamu County

TheJointCommitteeheldaconsultativemeetingwith theCountyCommissioner,Lamu County,as part of the public participation exercise.The meeting focused on security, infrastructurereadiness,portoperations,and theimplicationsoftheprojectforLamu County.

• 347.TheCountyCommissionerinformedtheCommitteethatLamu Countyremains generallysecureand that the security situation hasoftenbeenmisrepresenteddueto isolated incidents,including onemajorincident that occurred over a decade ago.Henoted that current security threats are limited andmanageable,with only isolated cases having beenrecorded.TheCountyCommissioner emphasizedthatthereisastrongandvisible securitypresence across thecounty,including alongkey transport corridors and access roads.
• 348.Onport operations,the County Commissionerindicated that thePortof Lamu is operational and currently supports transshipment activities.He noted that vessels are callingattheportregularly,with shipments takingplace onaweeklybasis,including

exportsoffertilizer and livestock.Hefurther explained thatLamuPorthasthepotential to support awiderrangeofcargoandeconomicactivitiesbeyondcrudeoil export.

• 349.The County Commissioner,having been informed of the proposal to use the port of Mombasaastheexport terminal insteadof Lamuport,noted thatwhile thismayhavebeen informed byinfrastructurereadiness andothereconomic considerations,the shift should notbeinterpreted as a lackofcapacityatLamuPort.
• 350.The Committee was informed that Lamu County has significantuntapped economic potential,particularlyin agriculture and fisheries.The County Commissionernoted that Lamuisaproductiveregion,withactivitiessuchasfishing,watermelonfarming,andoter agricultural activitiescontributing tolivelihoods.However,thesesectors continue toface constraintsduetoinadequateinfrastructureandlimitedaccesstoelectricity.Hehighlighted only about 20per cent is consumed locally,underscoring the needfor improved local infrastructure,storage,andmarket access.
• 351.The County Commissioner further emphasized the importance of continued investment in infrastructurelinkingLamu to other regions,particularly road connectivitybetween Lamu andTurkana through alternative corridors such as theIsioloroute.Henoted thatsuch infrastructure would enhance regional integration,support trade,and ensure that Lamu County derives broader benefits from national strategic projects,including oil development.

352. Overall,the County Commissioner expressed theview thatwhilecrude oil production may not directly pass throughLamu under the current evacuation plan,thebroader infrastructure,security improvements,and economic linkages associated with national projectsshould be leveraged tounlockLamu County's developmentpotential andimprove livelihoods.

4.5.2MeetingwiththeGovernorofLamuCounty

TheJoint Committee held a consultativemeetingwith theGovernorof LamuCounty and other senior county officials.The meeting was attended by the Governor,theDeputy Governor, County Secretary,County Executive Committee Members responsible for various sectors,the Head of Finance from the LAPSSET Corridor Development Authority and security team in Lamu County.

• 353.The Governor welcomed the Committee andprovided anoverviewof Lamu County's strategic interests in theoil and gasproject and thewider LAPSSETprogramme.Henoted thatLamuhasattractedinvestorinterestindownstreampetroleuminfrastructure,including proposals for an oilrefinery and a solar energyplant,with some investorsreportedly seeking about4,0o0 acresforthatpurpose.Hecautioned thatif thepipeline componentof theprojectwereremoved,itcould have an adverseeconomiceffectonthecountyandrisk renderingtheportinfrastructureunderutilised.
• 354.The Governor raiseda concern that the estimated 600 trucks could significantly increase heavy trucktraffic andincrease theriskofroad accidents.Heemphasised the importanceof undertaking theLokichar-Lamu crude oil pipelineproject,noting that large tankerscannotbeaccommodatedatthePortofMombasabutcanbeaccommodatedat Lamu port.
• 355.The Governor further observed that theLAPSSET Corridor has thepotential to open upnorthernKenya,citingthepatternwhere townshave developed alongrailwaycorridors,

andstressedthattheoilprojectshouldbeviewedwithinthisbroaderregionaldevelopment context.Theneed tofast-trackdevelopmentearlyenoughwasemphasizedwith the governornotingthattheareaearmarkedfortheLAPSETTcorridorisnotheavilysettled fornowandthereis aneedtotakethisadvantage.

• 356.During the discussions,itwasnoted that LamuPortis anatural deep-waterport having adepthof17.5metresandamongthelargestandthedeepestontheAfricancoast,with significantuntappedpotential.However,countyofficialsexpressedconcern that theKenya PortsAuthority(KPA)approach appeared tofavourMombasa overLamu,which they felt wascontributingtouncertaintyandslowinginvestorconfidence.Itwasemphasised that substantialinvestmentshad alreadybeenmadebyresidents,includinglandpurchasesalong the anticipated corridor,based on expectations associatedwith the pipeline andport development.
• 357.The County raised planning and compensation concerns,with the CECM in charge of theDepartmentofLand,infrastructure,energy,naturalresources andpublicworksnoting thatchanges orrestructuring theportmasterplanorremoval ofthepipelinewould trigger fresh surveys,planning processes,and potential compensation claims,therebyincreasing costsforboth thecounty and thenationalgovernment.With theCountygovernmentbeing theplanning authority,the officialsindicated that such changes would present a major administrative and financial challenge.
• 358.Wateravailabilitywashighlightedasakeyconstraint,with theCountynotingthat LamuEast continues to experiencewaterscarcity.Itwasneverthelessobserved that the projectcouldbeagamechangerforthe countyifimplemented as initiallyenvisioned. Expectationsaroundcompensationwerereiterated,particularlyforcommunitiesthat had anticipatedbenefitsalongthepipelinecorridor.
• 359.Furtherdiscussionshighlighted.theneedforclearand simplifiedcommunication,given that theFDPishighly technical anddifficultforthegeneralpublic tounderstand.Itwas alsonoted thattheLAPSSETprojecthadcreatedsignificantexpectationsamongresidents, and uncertainty around key components of the project risked undermining public confidenceinboththeprojectand thebroadercorridordevelopment.

4.5.3Submissionby the County GovernmentofLamu

• 360.The County Government of Lamu noted that it strongly supports the transportation of crudeoilfromLokichartoLamuPorteitherthroughadedicatedoilpipelineorbyroad tanker trucksratherthanroutingit toMombasaforthefollowingreasons:
• i. Strategicalignmentwith theLAPSSET Corridor-Lamu isthedesignated terminaloftheLamu-SouthSudan-EthiopiaTransport(LAPSSET) Corridor,a flagship national development project.Transporting oil toLamu directly aligns withtheoriginalvisionofLAPSSETwhichwasdesignedtoopenupnorthern KenyaanddecongestexistinginfrastructureinMombasa.
• ii. Availabilityofmodern oil handlinginfrastructure-LamuPort is anew deepseaportdesignedtohandlelargecargovolumesincludingpetroleumproducts.It offersthefollowing:adequatespaceforoilstoragefacilities,modernberths capableofhandlinglargecrudecarriersandfewercongestionriskscomparedto thealreadyoverstretchedPortofMombasa
• iii ReducedEnvironmentaland UrbanRisk-Routingcrudeoil toMombasawill increasingtheriskof:oil spills,traffic congestion andpublicsafetyhazards.

Lamu,by contrast,offersmore controlled andpurpose-built industrialzones, reducingenvironmentalandsocialrisks.

• iv. EconomicEmpowermentofMarginalizedRegions-TransportingoiltoLamu will:stimulate economicgrowthin Lamu Countyandthewidernortherncorridor, createjobsinlogistics,security,storage,andport services andpromotebalanced regional development,akey objectiveofthe Constitution of Kenya(2010).This approachhelps addresshistorical marginalizationofcoastalandnorthern counties.

2. CostEfficicncy and Long-TermViability-Adirectoil pipelinefromLokichar toLamu is:shorter andmore direct than alternativeroutes,more cost-effectivein thelong term comparedtoroad transportandlessprone todelays,securityrisks, andoperationaldisruptions.EveninterimtransportationbytruckstoLamu providesapracticalbridgetowardfullpipelinedevelopment

• vi. EnhancedNationalEnergySecurity-Lamu'slocation alongmajorinternational shippinglanesmakesit anidealexport hubusingLamuPort.Thisstrengthens Kenya'sposition inglobal oil markets,reduces dependency on congested export routes andenhancesnationalenergyexportresilience.
• vii. Complementaryand Not CompetitionwithMombasa-TheCounty Government of Lamu wishestoemphasize that thisproposal isnotintended to undermineMombasabut to complementit.Mombasa can continueserving refinedpetroleumimports andother cargowhileLamu specializesincrudeoil exports and bulk energylogistics.

5. 361.In conclusion, the County Government of Lamu requested the National Government andall stakeholderstoprioritizeLamu astheprimaryexportrouteforLokicharoil,noting that itwillmaximize thereturns onnationalinfrastructure investments,promote equitable development,andsecureKenya'slong-term energy and economicinterests.

4.5.4MeetingwithLAPSSET CorridorDevelopmentAuthorityOfficials

The Joint Committee held a meeting with officials from the LAPSSET Corridor Development Authority led by theDirectorGeneral

362. The officiais noted that LAPSSET is anchored in regional development objectives and aligns with the long-term devclopment visions of the thrcc countrics, that is; Ethiopia (Vision2030),South Sudan(Vision2040),andKenya(Vision2030)with the countries viewingKenya,and particularlyLamuPort,as a strategicgateway toglobalmarkets. 2. 363.LAPSSETofficialsinformed the Committee that the corridor was conceived as an integrated and interlinkedinfrastructure system,which hasvarious components which include;LamuPort,highways,railway,oil pipeline,international airports,resortcitiesand specialeconomiczones(SEZs).It wasemphasized that thecomponents are designed to functioncollectivelyratherthaninisolation,andthatremovalordelayofonecomponent affectstheviabilityoftheentirecorridor.TheDirectorgeneral tooktheCommitteethrough thevariouscomponentsofLAPSETT asfollows;

• i. OnLamuPort,theCommitteewasinformed thatthePortisadeep-seaport, whichhadremainedidleforsometimebutisnowoperational.Officialsindicated that theport is capableofhandlinglargevessels and any ship can dockwith its naturaldepthpresentingacomparativeadvantageoverotherregionalports.

4. ii On the oil pipeline component,LAPSETT officials explained that thecrude oil pipelinefromSouthSudantoLamuPortwasintended toevacuatecrudeoil from

SouthSudan throughLamuwithSouthSudan spearheading the construction of the crudeoil Pipeline,notingthat thediscoveryofoilinTurkanacame at alater stage.

• iii. On the Lokichar -Lamu Crude oil pipeline,LAPSSET noted that it was concerningthattheFDPisnotplanningtoevacuatethecrudeoilfromLokichar using thepipelineasinitiallyenvisionedandthatremovalofthepipeline componentwouldunderminetheintegrateddesignofthecorridorandcreate coordination challenges.Itwas emphasized that developingcomponentsin isolation does notmake economic sense,as LAPSSET's corevalue lies in integration.
• iv. Onlandacquisitionfor theLokichar-Lamupipeline the820Km stretchhas alreadybeensurveyed,inspectedandvaluedandthatonlyissuanceofawards wasremaining.Theynotedthatsignificantresourceshadalreadybeenexpended onplanning andpreparatoryworkforthepipelineandassociatedmarine terminal, and that abandoning thepipeline coulderode stakeholder confidence and trust, bothdomesticallyandregionally.
• V. LAPSSETofficialsnotedthatthecrudeoilpipelinefromSouthSudantoLamu wasconceptualisedbeforethediscoveryofoilinTurkanain2012.SouthSudan currentlyproducesapproximately110,000barrelsofcrudeoilperdayandpays approximatelyUSD35perbarrel toSudanfortheuseofthenorthernpipeline. TheofficialsnotedthatconflictsinSudanoftendisruptcrudeoilexports andthis presents anopportunityforKenyaandLamuCountytopositiontheLamucrude oilpipelineas an alternativeexportroute,especiallygiventhatKenya already has

4. Vi. Theofficialsnoted thatgiven theindicationof theFDPthatevacuationTurkana opportunitywhichalsopresentsmanybenefitstoKenya.Additionally,theynoted thatapossibilityofestablishingarefineryinLamutorefine theSouthSudan Oil canbe explored.In addition,there exists an opportunityfor aproductspipeline, particularlybecausesouthernEthiopiaisgeographicallyclosertoLamuPort than otherregionalports,providingacompetitivelogisticaladvantage.

• vii. On the Highways component,The Committee was briefed that substantial progresshas been made on highway infrastructure,particularly theLamuGarissa-Isiolo corridor,with some sections completed or under active construction.However,some stretches remain incomplete,affecting full operationalization.
• viii. Onrailinfrastructure,officialsstatedthatKenyahasabilateralagreementwith Ethiopia,andthatEthiopiaiskeenonrailconnectivitythroughLamuduetothe needforacheaperandmoreefficientroute forcargomovement.Lamuwas identifiedasthepreferredmaritimeoutletcomparedtolongerormorecongested alternatives.Itwasfurthernotedthatrailconnectivityisessentialtodecongest MombasaPortandprovideKenyawithasecondviablelogisticscorridor.
• ix. OnSEZ,LAPSSETofficialsconfirmed thatLamuSEZhasbeengazetted, accessroads have been constructed,and there isgrowinginvestorinterest. However,they acknowledged thatregulatorybottleneckshavepreviouslyslowed investoruptake.Moreover,theofficialsalsohighlightedthedevelopmentof supportingenergyinfrastructure,includingasolarpowerplantprojectinLamu (approximately 40 MW),which isintended tosupport industrial andport operations.
• X. OnthechallengesfacingLAPSETT,theCommitteewasinformedthatoneofthe majorchallengesisthefragmentedinstitutionalcoordination,arisingfrom the allocationoffundingacross differentagencies responsibleforroads,rail,and otherinfrastructure.This hasweakenedcentralized coordination and delayed

implementation.Additionally,theOfficialsnoted thatlandacquisition isalsoa challenge noting that compensation along the corridoris expensivegiven limited resources.

4.5.5TownHall McetinghcldatLamuMaritime andInnovationCenter

The Committeealso helda TownHall Meetingwheremembersofthepublicfrom variousSubCounties in Lamu Countyparticipated and submitted theirviewsontheproposedFDPand PSCsasfollows:

364. Mr.Yahya Mohamed opposed the transport of crudeoil throughMombasaPort as proposed in theFDP.Prefers the construction of thepipelinefromLokichar to Lamu as proposed underthe LAPSSET Corridorbecause he has hadhisland acquiredcompulsorily and hasnot bccn compensated.He criticized lack of communication to the affected communitieson compensationforbothroads and theoilPipeline. 2. 365.Mr.AhmedFamau informed theCommittee that heprefersthe construction of the pipeline from South Lokichar to Lamu as proposed under the LAPSSET Corridor indicating that hislandwas acquired compulsorilyfor theprojectand hasnotbeen compensated. 366. Mr.Muhaji Ahmed noted that Lamu has more space for construction,processing and transportofcrudeoilfromLokicharcomparedtoMombasa. 4. 367.Ms.Salama Shafi supported the construction of the pipeline from Lokichar to Lamu as thiswill createjobsfor theirchildren and theyouth in general. 368. Ms.AminaAminaHamisi noted that theresidentshavesacrificed theirlandwhichis yet to becompensatedand therefore,theoil shouldbetransported throughLamuPort.She emphasizedtheneedforemploymentoftheyouthofLamuCounty. 6. 369.Ms.Angelina Ndusya cimphasized creation of jobs noting that locals arenot being employedin the Lamu port.She also askedfor compensation of personswhose land has beenacquiredforconstruction stressing that the cattlekeepers donot have land for cattle rearing. 7. 370.Ms.Basra Ahmed supported the LAPSSET approach for construction of an oil pipeline. Advocatedforcreationofemploymentforlocalswhohaveeducatedtheirchildren andthe need forlocalstobe employed inbigger capacities other thanjust as casuals.Thatwomen shouldbe included in the economicopportunities available through theLAPSSETproject i.e.employment. 371. Mr.Badi Nasiri speaking on behalf oftheyouths,noted that development levels in Lamu arelowandthattheprojectwill createemploymentandwealthcreationopportunities for theyouth and reduce poverty.Thepoor have sacrificed their landin the hope that the developments will result in compensation of the poor.He also noted scholarship programmesfromLAPSSETwereinitiallytherebuthadstoppedorreducedandrequested thesame tobereturned tobenefit theyouth. 9. 372.Mr.MohamedRajabnoted that thePresidentpromised the constructionof Lamu Port and thattransportofcrudeoilfromSouthSudanwillbethroughtheLamuPort.Hepointed out thatsomepeoplehavealreadyhadtheir landacquiredcompulsorilyandareyettobe compensated.Hefurtherindicated that transportingcrude oil using truckswill resultin the occurrenceofalotofaccidentsontheroads.

• 373.Ms.MagdalineNjeriasafarmerobserved thatfarmersshould notbe evictedfrom their land duetotheproject.
• 374.Mr.DansonKariuki supported the constructionofapipeline andrefineryinLamu as originallyproposedunderLAPSSET.

4.6MombasaCounty

TheCommittee held publichearings inMombasa County on 21s and22ndJanuary2026 having engagementswithmembersofthepublicandgovernmentagenciesontheFieldDevelopment Plan andProductionSharingContractsforBlocks T6 and T7inSouth LokicharBasin,Turkana Country.

4.6.1OfficeoftheGovernorMombasaCounty

OnWednesday21sJanuary2025,theCommitteewasbriefedonacourtesymeetingheldwith theGovernorof Mombasa County,H.EAbdullswamadSheriff Nassir duringwhich matters relating totheFieldDevelopmentPlan(FDP)and ProductionSharing Contracts(PSCs)were discussed.Keyissuesdiscussedincluded:

• of Mombasa County,including local enterprises,youth,and professionals, are meaningfullyinvolvedinpetroleum-relatedactivities.
• 376.Therevival of KenyaPetroleumRefineriesLimited (KPRL)was also discussed,with recognition of its potential to create employment,promote localvalue addition,and contributetosustainableeconomicdevelopmentwithinthecounty.
• 377.TheCommitteetooknoteoftheGovernor'sconcerns.Theseviewswillbeconsidered alongsideinputfrom communitypublicparticipationforumsandotherstakeholdersasthe CommitteefinalizesitsfindingsandrecommendationsontheFDPandPsCs.

4.6.2OfficeoftheRegional Commissioner CoastRegion

On21st January2026,theJointCommitteeheldaconsultativemeetingwith theRegional Commissioner,CoastRegion,aspart ofthepublicparticipation process on theproposedField DevelopmentPlan(FDP)fortheSouthLokicharOilProject.

• 378.The meeting focused on security preparedness,inter-agency coordination, infrastructurereadiness,and theimplicationsofevacuatingcrudeoil throughMombasa Port,includingtheanticipatedimpactonroadnetworksandurbanmobility.
• 379.TheRegionalCommissionerinformedtheCommitteethattheCoastRegionremains increasedcommercialactivityatthePortofMombasa.Henotedthattheregionalready handles significantvolumes ofpetroleum products and hazardous cargo,supported by establishedsecurityprotocolsandcoordinationamongnational securityagencies.
• 380.On transport andsafety,concernswereraisedregardingthepotentialescalationofroad safetyrisks arisingfromincreasedheavytrucktrafficassociatedwithcrudeoil transportationfromLokichartoMombasa.TheRegionalCommissioneremphasizedthe need for advance planning,traffic management measures,and enhanced enforcement to mitigate accidentrisksandprotectpublicsafety.

• 381.The Committeewasfurther informed thatevacuationofcrude oil throughMombasa wouldrequireclosecoordinationbetweennationalgovernment agencies,includingsecurity agencies,transport authorities,andportoperators,toensure uninterrupted operations and minimizedisruption toexistingeconomic activities.

382. Importantly,theRegional Commissioner's team emphasized thecriticalimportanceof undertaking thorough,inclusive,and well-documented public participation,noting that infrastructure and extractive projects of this scale have historically atracted litigation where communities perceive exclusion,inadequate consultation,or lack of clarity on benefitsand impacts. 383. The team cautioned that insufficientpublicparticipationcouldexpose theproject to legal challenges,injunctions,and implementation delays,and advised that sustained engagementwith affected communities should be treated asariskmitigationmeasure, ratherthanaproceduralformality.

• 384.Overall,the Regional Commissioner underscored the importance of clear institutional coordination andundertaking thorough public participation to support the proposed evacuationplanandsafeguardbothsecurityandpublicsafetyintheregion.

4.6.3PublicParticipationForum Held in Magongo Stadium, Changamwe Constituency

On21sJanuary2026,theJointCommittceconducted apublicparticipationforum atMagongo StadiumHall in Changamwe,Mombasa County,whereresidents,communityrepresentatives, and business operatorspresented theirviews on theproposed FDP andPSC.

385. While participants exprcssed general support for the development of Kenya's petroleumresources,themostdominantand consistentlyraisedissue duringtheforumwas the call fortherevivaloftheKenyaPetroleumRefineriesLimited(KPRL)facilityasafully operational refinery. 2. 386.Participants emphasized that therefinery has historically been the economic backbone of Changamwe,providing employment,skills development,local procurement opportunities,andbroadersocio-economicbenefitsto thousandsofresidents. 3. 387 Strong concern was expressed that continued use of the refinery as mere storage facilities, without active refining operations, represents a missed opportunity for value addition,industrial growth,and affordablefuel supply. 388. Severalparticipantsargued thatrevival oftherefinerywould:

• i. Create sustainable employmentforlocal residents;
• i. Contribute tothereductionoffuelprices;and
• ii. Support downstream industries and technical training;
• iv. Restorelivelihoodspreviously supportedbyrefineryoperations.

389. Theissue of crude oil evacuation throughMombasawas thereforeviewed by many participants as inseparable from thebroader question ofdomesticrefining and value addition,ratherthanastandalonetransportdecision. 390. In addition torefineryrevival,participantsraised concernsregarding:

• i. Increased road congestion and accidentrisksfrom heavy trucktraffic;
• ii. Environmentalandpublichealth impactswithin denselypopulatedareas; and

• iii. Theneedforclearframeworkstoensurelocalemploymentandinclusive economicparticipation.

2. 391.Overall,the publicparticipation forumreflected conditional support,with residents stronglyurgingthattheFDPbealignedwithaclearnational strategyonrefineryrevival, industrial development,and equitable sharingof benefitsforhostcommunities.

4.6.4 Kenya Petroleum Refineries Limited(KPRL),Kenya Pipeline Company (KPC),and Kenya PortsAuthority (KPA)

On22ndJanuary 2026,theJoint Committee held a technical consultativemeeting with officialsfromKenyaPetroleumRefineriesLimited(KPRL),KenyaPipeline Company (KPC),and theKenyaPortsAuthority(KPA)toobtaininstitutional perspectiveson theFDP andtheproposedcrudeoilevacuationstrategythroughMombasa.

• 392.OfficialsfromKPAinformed theCommitteethatthePortofMombasahasexisting experienceinhandlingpetroleumcargo,includingcrudeoil andrefinedproducts,andthat portoperationscould accommodatecrudeoil exportssubject toappropriate scheduling, safetyprotocols,andinfrastructure adjustments.
• 393.KPA officials,however,acknowledged that port congestion remains a structural challenge,particularly duringpeakperiods,and emphasized theneedforcarefulplanning toavoiddisruptionofexistingtradeflows.
• 394.KPCandKPRLofficialsbriefed the Committeeon thecurrentpipelineandstorage infrastructureandalsohighlighted thehistoricalandpotentialfutureroleofdomestic refining,notingthat anylong-term strategyforcrude oil development shouldbe aligned with broader national objectives on value addition,energy security,and industrial development.
• 395.On theStatus and Cost Implications of Refinery Infrastructure,KPRL officials informedtheCommitteethattheexistingrefineryinfrastructureisagedandwouldrequire significant capitalinvestment torestore fullrefining operations.Indicative estimates providedduringthemeetingplacedthecostofupgradingandmodernizingtherefinery at approximatelyUSD2.4billion,accordingtoa2012study,whichcouldnowhavedoubled, dependingonthescopeofrefurbishmentandtechnologychoices.
• 396.Itwasfurthernoted thattheestablishmentofanew,modernrefineryfacilitywould entailsubstantiallyhighercapitalcosts,estimatedtorangebetweenUSD5billion andUSD 7billion,excluding associated infrastructure such as pipelines,utilities,and storage facilities.
• 397.OfficialsfromKPRLandKPCalsoclarifiedthatthequestionofwhetherKenyashould exportcrudeoil orrefinedpetroleumproductshasnotbeenconclusivelydeteriminedand remains subjecttofurthertechnical,commercial,and economic studies.
• 398.Uponfurtherengagement,officialsfromKPRL andKPCinformed the Committee that at thetimeofitsclosure,therefinerywasprocessingapproximately80,oo0barrelsofcrude oilperday,andwithPhaseIproductionprojectedatapproximately20,000barrelsperday, which is significantlybelow thehistorical refinery throughput capacity.Theofficials indicatedthatoperatingarefineryatsuchreducedvolumeswouldraiseseriouscommercial viabilityconcerns,particularlyregardingunitprocessingcosts,utilizationrates,andoverall economicefficiency.

• 399.OfficialsfromKPRL,KPC,and theMinistry alsoindicated that the prospectofrefining crude oil domesticallymaynotbe economically competitive.Thisislargelydueto thehigh transportation costs already incurred inmoving crudeoilfrom production sites tothe refinery andthe additional expenses associatedwithrefining,whichsignificantlyraise the baselinecost.
• 400.In this context,the officialsindicated that operating arefinery at such reducedvolumes would raise serious commercial viability concerns,particularly in relation to unit processingcosts,utilizationrates,and overalleconomicefficiency.
• 401.The meeting underscored the need for coordinated inter-agency planning,particularly inrelationtopcrt operations,pipelinedevelopment,roadinfrastructuremaintenance,and emergencyresponsepreparedness.
• 402.TheJoint Committeewas also taken on a comprehensive tour ofKPC,KPA,andKPRL facilities to assess their current state and readiness,providing firsthand insight into the impactprojectimplementation.

CHAPTERFIVE STAKEHOLDERSENGAGEMENTS

5.0SUBMISSIONS BY STAKEHOLDERS,OILAND GAS EXPERTS AND MEMBERSOFTHEPUBLIC

• 403.TheField DevelopmentPlan andProductionSharing ContractsforBlocksT6 and T7 inSouthLokicharBasin,Turkana Countywere tabledin theNationalAssembly and the Senate onThursday,27thNovember2025pursuant toSection pursuant toArticle71(1) of the Constitution ofKenya and Section 31(1)of the Petroleum Act,Cap.308and subsequentlycommitted to theDepartmental CommitteeonEnergyand the Senate StandingCommittee onEnergyforconsiderationandreportingtotheHouses.
• 404.TheField Development Plan and ProductionSharing Contractswere subjected to publicparticipationpursuant toArticle118(1)(b)oftheConstitutionofKenya,2010 and inthisregard,anadvertisementwasplacedinthedailiesonSaturday,29thNovember2025 bytheNationalAssemblyandonThursday,18thDecember2025bytheSenate.
• 405.Further to the call for memoranda from the public through the placement of advertisementsintheprintmedia,theCommitteeinvitedstakeholdersforaretreatheld between9thand16thFebruary2026toreceive theirviewsand submissionson theField DevelopmentPlanandProductionSharingContracts(DetailsinAnnex4).TheCommittee metthefollowingstakeholders:
• i. MinistryofEnergyandPetroleum
• iii. MinistryofInteriorandNationalAdministration
• ii. TheNational Treasury and EconomicPlanning
• iv. MinistryofRoadsandTransport
• V. OfficeoftheAttorneyGeneral
• vi. National Lands Commission
• vii. MinistryofWater,SanitationandIrrigation
• viii. MinistryofEnvironmentClimateChangeandForestry
• X. CentralBankofKenya
• ix. KenyaRevenueAuthority
• xi. OfficeoftheAuditorGeneral
• xii. TheNational LandsCommission
• xiii. KenyaLawReformsCommission
• xiv. BusinessRegistrationServices
• XV. GulfEnergyBV
• xvi. VariousOilandGasexperts

5.1 Engagementwith Oil and GasExperts

OnMonday,9thFebruary2026,theJoint Committee engaged various stakeholders and expertsto deliberateon theFieldDevelopmentPlan(FDP)and theassociatedProduction Sharing Contracts (PsCs).

5.1.1SubmissionsbyMr.MarkEkuam

Mr.MarkEkuam,anexpertin the Oiland Gasindustry currentlyunder the ChineseNational Petroleum,presented his observations,concerns,and recommendations on the Field DevelopmentPlan asfollows:

• 406.Mr.Ekuamviewed thetransitionofoperatorshiptoGulfEnergyE&PBVasa critical stepin addressingtheoperatorparalysisthatplagued theproject'sfinalyearsunder previousleadership.Heasserted that the targetof362millionrecoverablebarrelsis technicallysoundandjustifiedbytheproposedwaxycrudemanagementstrategies.

• 407.Furthermore,he observed that the aggressive timeline targetingFirst Oil byDecember 2026isachievable,provided thereisimmediateinfrastructuremobilization.Onthefiscal front,henoted thattheincreaseinthecostrecoveryceilingfrom55%to85%isasignificant concession that alignsKenyawith complexmarketslikeAngola;however,he stressed that this adjustmentnecessitatesrigorous oversight toprevent expense inflation.
• 408.A primary area of concern for Mr.Ekuam is the logistical reliance on road transport. Whilehe acknowledged thatmobilizing600 tankers ismathematicallyfeasibleintheshort term,he classifiedit as a High-Riskstrategyregarding road safety andlong-term economic sustainability.He argued that maintaining such a fleetbeyond twoto threeyears isnot viableduetoenvironmentalimpacts andsafetyrisks.

409. Additionally,Mr.Ekuam highlighted deep-seated community skepticism,describinga "broken hope"withinTurkana following thecollapseof the local economy after Tullow's exit.Hewarned that the communityviews thenewoperatorwithcautionand thatsocial license depends onrestoring the entire ecosystem,including closed clinics and collapsed SMEs,rather thanjustoffering employment.

• 410.Tomitigate theserisks,Mr.Ekuam recommended that Parliamentratify the updated FDP and fiscal terms,but with strict conditionalities attached.His most urgent infrastructurerecommendation isfor theCommittee tomandatean immediate feasibility studyforarailwayspur(LAPSSET)fromLokichar,arguing thatrailisthe only sustainable solutionforthe50,0o0barrelsperdayplateau target.

411. Regardinggovernance,he called for the establishment ofa Joint Parliamentary Oversight Committee toenforceaccountability through quarterly reviews.Finally,to secure social stability,he insistson the strict enforcementof theLocal Content Plan, specifically thereservation of1oo%ofunskilledlaborrolesforTurkanaresidents and a quarterlyauditoftheExpatReplacementPlantoensuregenuineskillstransfer.

5.1.2 Submissions byEng.FredrickNgasikeEjore

Eng.FredrickNgasikeEjore serves as theRegional Directorfor EastAfrica atKamit Group Limited,a Canadian-headquartered oil and gas services company.He submitted hisexpert opinion,backed by extensive field experience,having worked for 7years with Tullow Oil on Project Oil Kenya acrossits exploration,drilling,appraisal,and Early Oil Pilot Scheme(EOP) phases.He submitted as follows:

• 412.In hisreviewof theFDP,Eng.Ejore outlined several critical functionalareasrequired togovern thesectoreffectively.HeemphasizedRegulation andLicensingasfundamental necessities,definingthem asthesupervisionofexploration and development activitiesto ensurestrictcompliancewithtechnical andsafetystandards.Healsohighlighted thecritical nature of CostManagement andRevenue,observing that thegovernment mustoversee the costefficiencyofoil companiestoensure thatstaterevenues,bothfiscal andnon-fiscal, arenoterodedbywasteful spending.Furthermore,heidentifiesEnvironmental andSocial Monitoring and DataManagementas keypillars,ensuring that health and safetymeasures areimplementedandthatalltechnicalandfinancialdatageneratedbytheindustryare properlymanaged.
• 413.To address these governancc needs, Eng. Ejore provided specific actionable recommendationsfocusedontheEnergyandPetroleumRegulatoryAuthority(EPRA).He advised theJoint Committeetoempower orrevampEPRA,establishingit asa statutory body to monitor and regulate both theupstream(exploration/production)and midstream

(refining/transportation)sectorseffectively.Heargued thatastrengthenedEPRAwould be essentialtoensure operationscomplywithlaws,optimizeresourceusage,andprotectthe environment for long-term economicvalue.Additionally,to support National Content Development,hestronglyrecommended.theintroduction ofaNational SupplierDatabase. Heproposed thatall companiesintendingtoparticipateintheKenyanoil andgassector must berequired toregister andseekapprovalthrough this database,ensuring thatKenyan businesses andgoods are prioritized in the supply chain.

• 414.Eng.Ejore supported theimmediateprogressionof the South Lokichar project. Drawingparallelsto his experience inUganda and the economicimpactobserved there,he argued thattheprojectinTurkanashouldproceed.withoutanydelays.Hecommendedthe collaborativeworkdonebythetechnicalteamsatTullowOil,GulfEnergy,andthe GovernmenttoproducethecurrentFDP.Hisfinalsubmissionwasthatiftheprojectis handledright,itispossible tobecome amajoreconomic.pillar forKenya,and heurges stakeholderstosupportinfrastructuredevelopmenttofacilitatethecommercializationof firstoil.

5.1.3S SubmissionbyMr.MarkSenteu,CommercialDirector,Petroleum Experts

• 415.Mr.Senteuplacedaprimaryfocus onenvironmental integrity,specificallyquestioning therobustness of the safety mechanisms proposed in theField Development Plan.His submission soughtclarityonwhether comprehensive spillpreventionmeasuresare currentlyinplacetomitigatepotentialecological damage.Furthermore,heemphasizedthe necessity of having concrete emergency response plans to handle accidents effectively shouldtheyoccur.Healsohighlighted thecriticalneedforadetailedenvironmental restorationplan,ensuringthattheprojectoutlinesclearprotocolsforrehabilitatingtheland andecosystemupontheconclusionofoperations.
• 416.A significantportionofMr.Senteu's submissionaddressed thecommunicationof publicbenefits.Heraisedconcernsregardinghow theproject'svalueis articulatedto stakeholdersatvariousadministrativelevels.Specifically,hediscussedtheneedforclear communicationregardingthetangiblebenefitsaccruingtotheNationalGovernment,the CountyGovernment,andlocalcommunities.Hisrecommendationimplied thatforthe projecttogain andmaintain social license,the distribution ofbenefits across these three tiersofgovernmentmustbetransparent andwell-understoodby thepublic.
• 417.On theLocal Content and EconomicInclusion,regarding local content,Mr.Senteu critiqued theFDPforitslackofexplicit detail concerning the engagementof local service catering,andwatersupply,wouldbeprocured.HearguedthattheFDPneedstofactorina robustLocalContentPlanthatoutwardlymentionsandprioritizesthesesectors.His concernunderscores therisk that,without specificmandates,localbusinesses in thesekey serviceareasmightbeoverlookedinfavourofexternalcontractors.
• 418.Mr.Senteurecommended the empowermentof the statutorybodyresponsiblefor oversight.Headvocatedforstrengtheningthemandateandcapacityoftheregulatory authoritytoensureitcaneffectivelyfunctionasawatchdogover theproject'sexecution. This recommendation suggests that for the environmental,social,and economic commitmentsintheFDPtoberealized,thegoverningbodymusthavetherequisitepower toenforcecompliance andholdoperators accountablethroughout theproject'slifecycle.

5.1.4 SubmissionbyMr.KenMugambi,an Oil and GasProfessional

• 419.Mr.Mugambi observed that despite the 2012 discovery,Kenya has failed to commercializeitsoil forover13yearsdue tothepreviousoperator'sfinancialchallenges anda shiftingglobal landscape.Henoted thatwith theworlddecarbonizing andpetroleum demandprojected topeakby2050,global majorsarenowprioritizingmassivefields in regions like Guyana and Tanzania while exiting smaller developments like Kenya's. Furthermore,hehighlighted thatinternational fundingforfossil fuelprojects is shrinking due to strict carbon controls,which severelyhinderedtheprevious operator's ability to securecapital.

420. To address these challenges,Mr.Mugambi argued that the future of the sector lieswith indigenous companies like Gulf Energy,which are quicker and more cost-efficient than internationalmajors.He asserted that thedemocratizationoftechnologyfrommarketslike China and India allows local operators to access cutting-edge tools at a fraction of the cost, a trendsuccessfully demonstratedinNigeria andAngola,wherelocalfirmsnowrunmajor assets.Heviewed the transition toaKenyan-owned operator asastrategicopportunity to accelerate decision-makingandpivot thecountryinto anoil producerwithin the next year. 421. Consequently,Mr.Mugambistrongly recommended that theJoint Committee approve theFieldDevelopment Plan(FDP),describingit as thekey to unlockingKenya's resource potential.Heemphasized thattheplanisoptimizedtoempowerlocal communitiesthrough enhanced revenue and local content,asindigenous companies are naturally inclined to management strategy,which proposes valorizing waste by converting it into useful construction materialslikeblocks androad aggregate,rather than simply disposingof it.

5.1.5 Submission byZikhara Sushil,Oiland Gas Consultant

• 422.M Mr.ZikharaSushil,an independentOil and GasConsultant,presented histechnical and governance-focusedobservationson the Field DevelopmentPlan(FDP),with particular emphasisonregulatoryempowermentandtheenforcementoflocalcontentobligations.
• 423.A central pillar of Mr.Sushil's submission was the need to strengthen themandate and operationalcapacity of the Energy and Petroleum Regulatory Authority (EPRA).He argued that as the project transitions into production,EPRA must be adequately empowered financially,technically,andlegallytoapprove tariffs,scrutinizemidstream infrastructure costs,audit cost recovery claims,and enforce safety,environmental,and operational standards.
• 424.With regard tolocal content,Mr.Sushil underscored that local participation must translateintomeasurableeconomicempowerment.Hecalledforstrictenforcementofthe Local Content Plan,including clear thresholdsfor local employment,procurement from Kenyanfirms,andenforceabletimelinesforexpatriatestaffreplacement.Heemphasized thatlocal contentcomplianceshouldberoutinelyaudited andpubliclyreported.
• 425.Inconclusion,heindicated that regulatory strength and local economic empowerment areindispensabletoensuring that theprojectdelivers durablenational and community benefits.

5.1.6SubmissionbyJohanaEkwam

• 426.Mr.Johana Ekwam presented his technical and environmental concernsregarding the Field Development Plan (FDP),with particular emphasis on oil spill mitigation,water sourceselection,andgroundwatervulnerability.

• 427.Mr.Ekwam acknowledged the strategicimportanceofadvancingproductionunder GulfEnergyE&PBVbutstressed thatoperationalpreparednessmustmatchthescaleof projectedproduction.Healsocalledforclearlyarticulatedandfullycostedoilspill prevention andresponsemechanisms.
• 428.A significantportionofhis submission focusedon the decision-makingprocess surrounding the selectionofTurkwel Dam as aprimarywater source.Mr.Ekwam indicated thatallotheralternativesurfaceandsubsurfacewateroptionswerecomprehensively evaluatedbeforesettlingonTurkwel.Heemphasizedthatabstractionfromthedamwas supportedbyhydrologicalstudiesconfirminglong-termsustainabilitywithout compromisingdownstreamusersorecologicalbalance.
• 429.He furtherraised concerns about the hydrogeological characteristicsof theregion, notingthatunderground aquifersmaybeinterconnected throughsubsurfacefractures and sedimentaryformations.Inhisview,thehydrological connectivityoftheareaincreasesthe risk that contamination from drilling sites,waste pits,or pipeline leaks could migrate beyond theimmediateprojectfootprint.
• 430.Mr.Ekwamcautionedthatgroundwatercontaminationisparticularlydangerousinarid zonessuchasTurkanaCounty,wherecommunitiesrelyheavilyonboreholesandshallow aquifersfordomesticuseandlivestockwatering.Herecommendeddetailedgroundwater mapping,baselinewaterqualityassessments,and theinstallationofcontinuousmonitoring wellsaroundproductionsites.
• 431.In conclusion,Mr.Ekwam maintained that environmentalresilience must underpin production strategy.He emphasized that proactive spill preparedness and rigorous groundwater protection measures are essential to safeguardingpublichealth,livestock systems,andlong-termecological stability.

5.1.7 Submissions byJoel Lulunken

• 432.Mr.Joel Lulunken,an engineer by profession,presented his views on the Field Development Plan (FDP),focusing primarily on social sustainability and equitable communityinclusionthroughouttheprojectlifecycle.
• 433.Mr.Lulunken acknowledged theeconomicsignificance oftheproject and therenewed momentumfollowingthetransitionofoperatorshiptoGulfEnergyE&PBV.However,he cautioned that thediscourse aroundcommunityengagement appearsnarrowly centeredon theimmediatehostcommunity,withoutsufficientrecognitionofotheraffectedpopulations alongtheprojectvaluechain.
• 434.He emphasized that oil development isnotgeographically confined to thewellhead.In his view,communities along transportcorridors,storage facilities,support infrastructure zones,andauxiliaryserviceareasmustequallyberecognized asstakeholders.He argued thatprojectplanningmust adoptalifecycle approach thatintegratesupstream,midstream, and associatedinfrastructureimpactsfrom explorationthroughdecommissioning.

5.1.8SubmissionsbyDr.Bruce Ogaga

• 435.Dr.Bruce Ogaga,SeniorLecturer,presenteda macro-fiscal andresource governance analysis of the Field Development Plan (FDP),focusing on sunk production costs, economicrent,resourceexhaustibility,legislativesafeguards,andtechnologytransfer.

• 436.Dr.Ogaga acknowledged the technical feasibility of advancingproduction under the currentoperatorshipof GulfEnergyE&PBV.However,heraisedconcern over thehigh sunk andprojected capitalexpenditure associatedwithfield development,warning that highfront-loadedcostscouldsignificantlydelay theState'srealizationofeconomicrent.
• 437.He emphasized that petroleum resources generate cconomic rent onlywhen revenues exceed all costs, including capital recovery and operational cxpenditure.In his view,any expansionof the costrecovery ceilingor escalationin project costsmust be carefully scrutinized toensurethat thesovereignshareofprofit oil isnoteroded.Hecautioned that weakcost discipline could effectively transferdisproportionatevalue to the operator at the expenseoftheState.
• 438.Dr.Ogaga underscored the exhaustiblenature of petroleum resources,noting that crude oilis a finite national asset.He argued that because extraction permanently depletes the resource base,fiscalframeworksmust prioritize optimalrecovery and intergenerational equity.Accelerated extraction without adequate economic return,he warned,would amounttoprematuredepletionwithoutcommensuratenationalbenefit.
• 439.On legislative matters,Dr.Ogaga called for strengthened statutory clarity to govern production licensing,fiscal terms,and cost auditing mechanisms.He argued thatreliance oncontractual arrangements alone is insufficient and thatrobust legislative backing is necessary to ensure predictability,accountability,and investor confidence.He recommended thatParliamentreviewexistingpetroleum andfiscal laws toclosepotential loopholesthatmay exposetheStatetorevenue leakage.
• 440.A key pillar of his submissionwas the need for structured technology transfer and revenuesbutalsointhedevelopmentofdomestictechnicalexpertise.Headvocatedfor enforceable technology transfer provisions within project agreements,including joint technical programs, mandatory training quotas,research partnerships with local institutions,andtime-boundexpatriatereplacementframeworks.
• 441.He concluded that the ultimate measure of success will not merely be production volumes,but theextent towhichtheprojectsecuressustainableeconomicrent,institutional strength,and lasting nationai capability.

5.1.9 Submissions byDr.EzekielEkuwom

442. Dr.Ezekiel Ekuwom,formerChiefOfficerTurkana County,presented hisobservations on theFieldDevelopmentPlan(FDP)witha strongfocuson environmentalprotection, waterresourcepreservation,andsafeguardingpastoral livelihoods. 443. Dr.Ekuwomacknowledged thepotentialeconomicbenefitsof theprojectunder the currentoperatorshipofGulfEnergyE&PBV.However,hecautionedthatoildevelopment mustnotunderminetheecological foundationsuponwhichlocalcommunitiesdepend, particularlyin aridandsemi-aridregions such asTurkanaCounty. 3. 444.A central concern in his submissionwas the protection of water sources.He emphasized that surfacewaterpoints,seasonalrivers,boreholes,and underground aquifers constitute lifelinesforboth human consumption andlivestock. 445. Dr.Ekuwom furtherunderscored theimportanceofpasturelandpreservation,noting thatpastoral mobilityandgrazingpatterns arecritical to thesurvival of local communities. He cautioned that infrastructure development,including well pads,access roads,and

transportcorridors,couldfragmentgrazingroutesandrestrictaccesstodry-seasonpastures ifnotcarefullyplanned.

• 446.Hehighlighted thatlivestockremainstheprimaryeconomicassetintheregion,forming the backboneofhousehold income,food security,andcultural identity.Inhisview,any disruption towater access orgrazing systems would havefar-reachingsocio-economic consequencesthatcouldoutweighshort-termoilrevenues.

5.1.10Submissions on gender issuesand socialprotection byMs.Basra Ali&HannahMoturi

• 447.To ensure equitableparticipation,the submission emphasizeda deliberate focus on genderparitywithintheproject'sworkforceanddevelopmentinitiatives.Itrecommended specificWomeninOil&Gastrainingprogramsdesignedtofostergenderinclusionin technical roles,moving beyond traditional administrative positions.Furthermore,the submission calledfor targeted investimentsingirls'educationinitiatives tobridge thelongtermskillsgap andensurethatfutureopportunitiesinthesector areaccessibletowomen fromthehostcommunity.
• 448.Restoration ofSocialProtectionSystems:Thesubmissionhighlightedthecollapse ofvital social safetynetsfollowingthepreviousoperator'sexitandurged theirimmediate restoration to protectvulnerable groups.It specificallymandates the reopeningof communityhealthclinicsthatpreviouslyservedover5o0patientsmonthlyandthe resumptionofmobilemedicalunits.Akeypriorityidentifiedistheimplementationof Maternal and Child Healthprograms tosafeguardfamilies intheproject area.Additionally, the submission stressed that social protection must be institutionalized through a CommunityTrust,whichis allocated aspecificportionoftheproject'sbenefits tofund these essentialservices sustainably.

5.1.11 Mr.Johnson Kibaki Mirii

Mr.Johnson Kibaki Miri,a first year Petroleum Engineering student at the Kenyatta Universitymadea submissionon theproposedFieldDevelopmentPlan(FDP),raising the followingkeyconcerns andproposals:

• 449.IntegrationofRenewableEnergy:heproposed theuseofsolar energyforfield facilitiessuchascontrolrooms andoperational buildings.Specifically,Building-Integrated Photovoltaics(BIPV)arerecommended toserveboth.asroofingmaterialsandpowergeneration systems.This approach wouldreduce dependence on diesel-generatedpower, lower operating costs,and convert field facilities from energyconsumersinto energy producers.Through this,therewill beproduction above the breakeven point and every barrelproducedwouldbeofprofitableimpact.
• 450.SustainableWasteManagement:heproposed that drillingcuttingsbeprocessed and whileloweringrawmaterial costsforcementproducers,contributingtoacirculareconomy andminimizingenvironmentalimpacts.
• 451.CleanerPower GenerationTechnologies:Wheregeneratorsremain necessary,he recommendedtheuseoffuelcellsandproperlysealedgeneratorsystemstoimprove efficiency,reduceemissions,andminimizefuel losses duringoperations.

5.2Engagement with Ministries,Departments,Other Government Agencies and theContractors

The Joint Committee engaged various Ministries,Departments and other Government Agencies to deliberateon theFieldDevelopmentPlan(FDP)and the associatedProduction SharingContracts(PSCs)as summarisedbelow:

5.2.1 Submission by the Cabinct Secretary,Ministry of Roads and Transport

OnWednesday,11 February 2026,the Cabinet Secretary for Roads and Transport,Hon. Davis Chirchir,E.G.H.,accompanied by the Principal Secretaries for Roads and Transport, Eng.Joseph Mbugua and Mr.Mohamed Daghar,respectively,appeared before the Joint Parliamentary Committees on Energy and made his presentation addressing the Ministry's positionon theproposedFieldDevelopmentPlanandProductionSharingContractsforthe Southokicharoil basin,withaparticularfocusonthecriticalissue of transportingcrudeoil toMombasaasfollows:

• 452.The Cabinet Secretary laid out the investments alreadymadeand the commitments alreadyfulfilled.OverKES200billionhasbeencommittedtoupgradingandexpanding the road corridors that will carry Kenya's first crude oil to market.Hereminded the Committee thatLokichar shouldnot be portrayedasaremote outpost awaiting connectivity.Thetownisalreadyintegratedinto thenationaltrunkroadnetworkthrough completed,all-weather roads and bridges constructed in recent years,notably the Lot 4 Lokichar-Loichangamatak section (KES 5.8 billion)and the Lot O LoichangamatakLodwar section(KES 6.782billion),which have significantly enhancedaccessibility and regional mobility.Thegroundwork,he suggested,has been laid to ensure oilfield logistics connectreliablytothewidercorridornetwork.
• 453.Two evacuation routes were presented,not as theoretical options but as operational corridors with active construction contracts andmeasurable progress.The first,running through Baringo,Nakuru,Nairobi,and on toMombasa,offersalower-traffic alternative for steady,controlled operations.The Ministry acknowledged the genuine risks of the Marich Pass terrain and responded not with evasion but with specific,funded countermeasures:mandatory vehicle inspections, designated safe stopping points, coordinated cmergcncy response protocols.
• 454.The second route,via Kitale and Eldoret, leverages anestablished logistics ecosystem, including services and supply chains,andongoingbypass constructions to handle highervolumephases.It connects tomajor corridor operations andsupports scaling as evacuation volunes increase.Together,these corridors can absorb the projected daily truck movementswithoutcrippling congestion through measureslike dispatch scheduling to avoidpeakhours.
• yettobefinalized,notwithstandingthatisolatedsafetyauditshavebeenundertaken on selectroad sections.It identified several high-risk corridors,includingMarich Pass,Tot, Loruk,and the high-speed conflict zones within Nakuru,Nairobi,and Mombasa. The Ministryfurtherrecognizedvulnerableroadusers,particularly motorcyclists,pedestrians, andresidents of urban centres,emphasizing thatmotorcycles are especially exposed along heavy-truck transit routes.Notably,it conceded that the current road safety inspection and enforcement capacityremains criticallyinadequate tomanagetheprojectedincreasein crudeoilhaulagetraffic.

• 456.To address this,the CSproposedanewMotor VehicleInspection(MVI) centre in infrastructureintoanautomatedfacility.AnotherMotorVehicleInspection centreis plannedforLokicharata similar costofKES600million,alongsideanupgradetothe overburdened andpoorlylocatedKitalefacilitytohandleheavytankerinspections.He suggestedthiswouldbedonethroughaPPParrangement.
• 457.Onthequestionofliability,theCSinformed the Committeethattheoperatorbearsfull financial responsibility for spills,cleanup,third-party compensation,and road repairs arising from its activities.Governmentliabilityis confinedto itsown demonstrable negligenceorforcemajeure.
• 458.TheMinistryalsoacknowledged thelessvisible threats:corruptioninenforcement, inadequatedrivertestingcapacity,andthedifficultyofchangingbehaviour onroadswhere fatalism runs deep.It proposed tools:smart driving licenceswithmerit and demerit systems,real-time fine enforcement,and expanded examiner cadres atKitale,Lokichar,
• 459.Heinformed theCommitteeonrehabilitationplansof theEldoret-Mombasametregauge line.The acquisitionof twenty-three active locomotives isplanned to support the 6dayround-trip cycle.UnderPhase2,theMinistryis considering556specialized,heated tankwagonsunderOptionA,or1,148ISOtanks and574flatwagonsunderOptionB,with totalcapitalexpenditure structured acrosstwophases totallingUSD666.56million.A hybrid fundingmodelisproposed:publicinvestmentin the track to"de-risk"theproject andguarantee thecycle,andprivatecapitalforthespecialized,thermallycontrolledrolling stock.
• 460.Hefurtherreported thatajoint technical committeeis alreadyevaluatingthefeasibility ofextendingtherailwaylinedirectlytoLokicharand,beyondit,totheSouthSudanborder. TheestimatedcostofKES210billionfora640-kilometremetre-gaugelineissubstantial, butsignificantlylessthantheKES3o0billion-plusrequiredforastandard-gaugerailway. Heexpounded thatitwouldbeamultipurposefreightcorridor,capableofcarryingcement from WestPokot,fertiliser and consumergoodsinto thenorth,agricultural produce and livestocktomarket.TheMinistry estimates anadditional 2.7to3.3million tonsofnon-oil cargoannually,unlockinganestimatedUs$200millioninregionalexportpotential.
• 461.Therailway,once built,willoutlive thewells.Itwill servefarmers and traders long after thelastbarrel isshipped.That,theMinistry suggested,is the truemeasureof itsvalue.
• 462.TheMinistrytestified that theLokichar-Lamu crudeoilpipelineprojectremainsa strategicobjectiveoftheLAPSSETcorridorvision.TheFront-EndEngineeringDesign wascompletedin2018,with theEnvironmentalandSocialImpactAssessment(ESIA) licencerenewedinMarch2024,andlandacquisitionwasunderway across counties, includingLamu,Garissa,Isiolo,Samburu,and Turkana.
• 463.TheMinistryfurtherstatedthatroadandrailaretheevacuationpathwaysforthe foreseeable future,and that thepipeline,ifit comes,will comelater.The Committee's concerns aboutLamu Port'sunderutilization were met with acknowledgment,asa significantpublicinvestment wasmade,but activity remains belowprojections.Road evacuation(Phase1)is engineered tomanage~25,000barrelsper day,transitioningtoa hybridroad-rail solution(Phase 2)beyond 2030.
• 464.The Ministryreported thatit was engaging county governments along the entire corridor:Turkana,WestPokot,Trans Nzoia,Uasin Gishu,Nakuru,and others,to manage

local infrastructure impacts,safety concerns,and business opportunities.A policy frameworkwasbeing developed torationalize countylevies andfees,preventing cost escalation thatcould undermineprojectprofitability.

• 465.The committee wasinformed that approximately28%of theRoadMaintenanceLevy Fundwas already securitised,with therestleftformaintenance and ongoingworks.Public privatepartnershipswerebeingpursuedforvehicleinspection centresand,potentially,for rollingstockacquisition.He alsostated that the2026/27budgetpolicystatementincludes specificprovisionsforcrudeoil transportinfrastructure.

466. The Cabinet Secretarywas specificabout deadlines:theRironi to Gilgil section to open by August 2026,major corridor upgrades to be completed by June 2027,and the multimodalsystem operational by September2026.Hewas equallyspecificabout the mechanism for achieving them:intensified contractor oversight,performance-based contracts,and,wherenecessary,theimposition of penalties.

5.2.2 Submissionsby theCabinetSecretary,MinistryofEnvironment, ClimateChangeandForestry

On Wednesday,11February 2026,the Cabinet Secretaryfor the Ministryof Environment, Climate Change and Forestry,Dr.Deborah Barassa,alongside theDirector General forNEMA, Dr.MamoBMamo,PhD,EBS,appearedbefore theJoint Committee andaddressed thecritical oversightof theFieldDevelopmentPlan(FDP)and ProductionSharingContractsforBlocks T6andT7intheSouthLokicharBasin asfollows:

• 467.A key development in the project is the transition to aphased production approach, starting at 20,000 barrels per day and scaling to50,000 barrelsper day.Notably,the Ministry confirmed a strategicshiftin logistics:crude oilwill initiallybe transportedvia road andrail trackingbecause theintendedLokichar-Lamu pipeline isnotyet constructed. This deviation from the original infrastructure plan necessitates a supplementary Environmental and Social Impact Assessment (ESIA) to ensure appropriate safety conditionsforpublichealth andtransportation.
• 468.On the issue of regulatory oversight and environmental safeguards,NEMA informed the Committee-that it issued a conditional ESlA license for theupstream project in October 2025,which imposes strict requirements on the contractor, Gulf Energy,following the transfer of liabilitiesfrom theprevious operator,Tullow Oil.These conditionsmandated a robustwasteimiainiagementinfrastructurecapableof handlingboth solidand liquid effluents. Aprimarytechnologicalinterventioninvolves therequirementforaThermalDesorption Unit(TDU) to treat up to752cubicmetersof hazardousmaterial permonth.Furthermore, theproject designincludes a50-hectare sanitarylandfill adjacent totheNgamiaoilfield These measures areintended tomitigate risksfrom carcinogenichydrocarbonsfound inrig cuttings.Specific licenses have also been issued forcritical infrastructure,including:
• i)WaterPipelineProject:A license(NEMA/PR/5/2/25,836)was issuedfora90.8 km water abstraction and transport system from TurkwelDam to the South Lokicharoil fields.
• ii)CrudeOilPipeline:LicenseNEMA/EIA/PSL/14788covers the824kmLokicharLamu Crude Oil Pipeline (LLCOP),traversing six counties within theLAPSSET corridor.
• ii)Upstream Devclopment:The core FDPlicense (NEMA/EIA/PSL/43347) mandates the implementation ofover 100 specificenvironmental conditions,

including noise monitoring,vibration control,and dust suppression during construction.

• 469.Topreventlong-termenvironmentaldegradation,theMinistryinformed theCommittee thatithadanchoreddecommissioningandsiterestorationwithinthePetroleumAct2019 and theEnvironmental ManagementandCoordinationAct(EMCA).Under thenew DepositBondRegulation2024,extractivecompaniesmustprovidefinancialassurance throughbonds to cover restoration costs evenif the company facesbankruptcy.The frameworkrequires technicalmeasures such asthe1o0%plugging ofwellstoprevent leaks ofhazardousgases likeHydrogen Sulfide and theremovalof heavymachinery.Upon successfulrestoration,thelandwillreverttotheNational Land Commission(NLC)tobe held in trust aspublicland,with future use determinedin consultation with the Turkana County Government.This process must adhere to the "Post-Closure Environmental Monitoring"plan,which requires at least five years of continued observation after site handover.
• 470.Serious concerns wereraisedregardingpastenvironmentalnegligence anditsimpact onthelocalpopulation.Communityrepresentativesreportedthelossofover200livestock due tocontaminated water sources followingexploration activities,where dangerous substancesallegedlytrickledintothewatertableduringrainyseasons.
• 471.The Committee expressed concern over inconsistencies in the reportingof compensation,noting that while the Ministry's report suggested that compensation processeshad been concluded,local leadersinTurkana Countyindicated thatnumerous affectedresidentshave yet to receive payment and called for fulldisclosure of compensation records,including amounts disbursed and beneficiaries.The Committee furtherraisedconcernsaboutallegedbirthdefectsandotherhealthcomplications reportedlylinked toimproperwaste disposalat abandonedexplorationsites.Inresponse, expresslyprohibits thedischarge ofuntreated drill cuttings orproducedwater into the environmentasamitigationmeasure.
• 472.The safety of the Turkana peopleremains a high-priority issue,with specific mentions ofpastfatalitiesinvolvingexpiredexplosiveskepton-site.Thereisaperceivedlackof adequatemonitoring,withreportsofcontractorsdumpingwastefromonewellintoanother to save costs.To address these transparency gaps,theMinistry and NEMA committed to enhancing community engagementand establishingclearreportingmechanismsso that residentscanidentifyresponsibleofficersforcomplaints.NEMAhasemphasized thatit will apply the"Polluter PaysPrinciple,"requiringimmediate containment,remediation, andcompensationintheeventofanyenvironmentalincidentoroilspill.
• 473.Severaladditionalcriticalissuesandcandidadmissionsemerged thathighlighted the gapbetweenpolicy andlocalreality:
• i)LegacyLiabilities andSiteNeglect:Committee membersraised alarmsover the currentstateofsitespreviouslymanagedbyTullow,describingthemas"deserted places"withnovisibleactivity.NEMAadmittedithadpreviouslyissuedrestoration
• ii)AllegationsofWasteMismanagement:Itwasallegedthatsomecontractors,to savecosts,movewastefromonewell to another(e.g.,fromNgamia1toTwiga 1) ratherthantreatingitasapracticethatNEMAwaschallengedtoinvestigate.

• ii)No functionalwaste management:Localrepresentatives argued that despite claims of"adequate"facilities,no functional waste management infrastructure is currentlyvisibleor accessiblewithinTurkanaCounty.
• 474.Past Environmcntal Harms:The Committee explicitly referenced the "bad experience"from titanium mining in Kwale and oil leaks in Makueni as reasons for demandingmorerobust,auditedfinancial provisions.

5.2.3SubmissionbyControllerofBudget

On Wednesday,11February,2026,the Controllerof Budgct(CoB),FCPA Dr.Margaret Nyakang'o,appeared before the Joint Committec to provide a critical appraisal of the Turkana LokicharField Development Plan(FDP) and ProductionSharing Contracts (PSCs)as follows:

• 475.A primary concern raised by the Controllerof Budget was the systemicexclusion of her office from the Field Development Plan and the associated Production Sharing Contracts(PSCs)for blocks10BBand 13T.Despite the CoB'sconstitutionalmandate underArticle228tooversee theimplementationofnationalandcountybudgets,thecurrent frameworkdoesnotidentifytheCoBasa stakeholder.Thisomissioncreatesasignificant oversightvacuum,astheCoBcurrentlylacksthelegalauthoritytomonitor,approve,or reportonthewithdrawalandutilizationofpetroleumrevenuesheldinspecializedfunds.
• 476.The CoB highlighted critical gaps in the transition of funds from the national level to localentities.While thePetroleumActof2019stipulatesarevenue split75%tothe National Government,20% totheCountyGovernment,and5%totheLocal Community, thereis a lackof clear legislative mechanisms to ensure these funds reach their intended destinations.Specifically,the CoB noted the absence ofa"ring-fencing"mechanism to protectoilproceedsforfuturegenerations,warningthatwithoutstringentregulations,these finiteresourcesriskbeingdivertedtowardimmediateoperationalexpendituresratherthan long-termdevelopment.
• 477.The CoB also highlighted that there is significant apprehension regarding the5% share allocatedtolocalhostcommunities.Shepointedoutthatthecurrentlawrequirescounty governmentstoestablishaBoardof Trusteestomanage thesefunds,yetthesestructures arelargelynon-existent orinadequately defined.Furthermore,thereisno exact mechanism orguideline for how the 2o% county share shouid be spent to ensure it benefits the actual communitieswhose lives are disrupted byoil exploration.The CoBemphasized that the environmental damage to the region may take decades to recover,making the prudent
• 478.A recurring concern was the practice of channeling oil-related revenues,including the PetroleumLevy,into special-purpose fundsoperating outside the ConsolidatedFund.The Controller of Budget(CoB) testified that her office lacksjurisdiction over suchfundsand isthereforeunabletoverifyexpenditures,exerciseoversight,orreporttothepublicontheir utilization.This arrangement wascharacterized as a structural loophole that effectively circumvents constitutional oversightsafeguards.The JointCommittee expressed grave concernthat proceeds fromprevious EarlyOil Pilot Scheme operations remain unaccountedfor,withtheCoBexplicitlystatingthatherofficehasnovisibilityoverthose fundsand cannot confirm their receipt,allocation,orexpenditure.
• 479.The Committeeinitiated a discussion on theeffectiveness ofKenya'spetroleum oversight framework in comparisontoregional peers,noting thatinUganda,petroleum auditors are empowered to intervene in real time and correct irregularities on-site.In response,the Controller ofBudget clarified thatKenya's constitutional and statutory

frameworkoperates asa sequential"relay system"rather than areal-time enforcement model.Under this architecture,the Controller of Budget,the Auditor-General,and Parliamentdischarge oversightresponsibilities atdifferent stages.She emphasized that, absent constitutionalreform,her office does notpossess prosecutorial or immediate enforcementpowersbutismandatedtomonitorcomplianceandreportfindingstothenext accountabilityinstitutionwithintheoversightchain.

• 480.One of themostpointedexchanges concerned the dispositionofrevenuesgenerated undertheEarlyOil PilotScheme(EOPS).Whenpressedonwhere theproceedsfromthose exportswereheld,theControllerofBudget(CoB)stated thatherofficehadbeenentirely excludedfromtheprocess.Sheindicatedthatthefunds werelikelyretainedin specialpurpose accounts or levy-based arrangements outside the Consolidated Fund,thereby placingthembeyondher constitutional oversight.This admission exposed asignificant transparency and accountability gap,as the CoBconfirmed thather office ispresently unableto trace,verify,or interrogate theutilization ofrevenuesmaintainedin such offbudgetstructures.
• 481.The Committeechallenged the CoBon whether theexistingPetroleum Fundis sufficienttoprotect theinterestsoffuturegenerations.Inresponse,the CoBargued that while the fund exists on paper,the lackof"ring-fencing"regulations means the money is vulnerabletobeingdivertedforimmediateoperationalcosts.Shestressed thatpetroleum isafiniteresourceandexpressedconcernthatthecurrentFieldDevelopmentPlandoesnot providea robust enough"generational shield"toensure thewealthoutlives theoil. extractionperiod.
• 482.Membersexpressed seriousconcernregarding theoperationalizationof the20%county allocationandthe5%localcommunityshare.Deliberationsrevealed theabsenceofa robust,ring-fencedmechanism toguaranteethatthesefundswill directlybenefithost communitiesrather thanbeingabsorbedintogeneral countyexpenditure.TheCommittee underscoredtheriskthat,withoutaclearregulatoryarchitecture,theintendeddevelopment impactcouldbediluted.Consequently,Membersurged theControllerofBudgettomove beyonddiagnosticobservationsandcollaboratewithrelevantinstitutionstodevelop concrete regulatory proposals.These would clarify the disbursement structure,define spendingparametersforcounties,andprovideaclearframeworkfortheestablishmentand governanceof local BoardsofTrusteesbeforecommencementofexportsunder thenew productionplan.
• 483.TheControllerofBudget(CoB)andMembersdeliberatedonwhatwascharacterized asagrowing trendof structuringpublicrevenues inamanner that circumvents constitutional oversight.The CoB observed that certain funds,including the Railway jurisdiction,therebylimitinghercapacitytoapprovewithdrawalsorverifycompliance withArticle228of theConstitution.Shecautioned thatshould theTurkana-Lokichar petroleumprojectadoptasimilarmodel,itwouldeffectivelyexcludeakeyconstitutional safeguardfrom therevenuemanagementchain.TheCommitteeconcludedbydirectingthe CoBtodevelopatechnicalandlegalroadmapoutlininghowherofficecanbeformally embeddedwithinthepetroleumrevenueframeworktoensurefullconstitutionaloversight fromthepointofreceipttofinalexpenditure.
• 484.Toaddress these issues,the CoBproposedseveral urgentinterventions:

• i)LegislativeAmendments:Integrating the CoB'srole directlyinto thePetroleum ActanditsregulationstoensureeverywithdrawalfromthePetroleumFundis authorizedandlawful.
• ii)Drafting Regulations:The CoB committed toreviewing the existing draft regulationstoprovidetheCommitteewithspecificproposalstomaketheprocess continuous.
• iii)EstablishmentofTrustFunds:Immediate actionisrequired tolegislatetheBoard of Trustees at the county level before full-scale production begins,ensuring a structure isready toreceive andmanage communityfunds.

5.2.4Submissionby theOfficcof theAuditor General

On Wednesday,11 February 2026,the Auditor General,FCPA Nancy Gathungu,CBS, appeared before theJoint Committee toprovideacritical appraisalof theTurkanaLokichar Field DevelopmentPlan(FDP)andProduction Sharing Contracts(PSCs)as follows:

• 485.TheOfficeoftheAuditor-General(OAG)presenteda detailed audit-basedassessment the petroleum sector,highlighting systemicweaknesses that expose the Government to revenue loss,operational inefficiencies,and environmental risk.The submission underscored thatwhiletheSouthLokicharBasinFieldDevelopmentPlanrepresentsa significantnational investment opportunity,existing audit gaps and legal inconsistencies mustbeaddressedtosafeguardpublicinterest.
• 486.A primary concern raisedwas the absenceof auditson recoverable petroleum costsfor BlocksT6 andT7.TheAuditor-General further notedweakmonitoringpractices,including incompletesubmissionofquarterlyfinancialreportsbycontractorsanddelayedreviewof workprogrammes andbudgetsbytheStateDepartment due tostaffingandprocedural gaps. These weaknesses undermine real-time oversight and increase exposure to unverified expenditures.
• 487.The OAG also identified significantweaknessesin themanagement of thePetroleum Training Fund.Oil companies have accumulated training feearrearstotalling approximately USD 6.7 million,yet enforcement mechanisms have been largely ineffective,and no contractual sanctions were applied despite prolonged non-payment. Audit findings further revealed irregularities in the use of training funds,with expenditures allocations for actual training activities.In addition,inadequate monitoring of local employmentrequirements has allowed expatriates tooccupyroles thatcould befilled by Kenyanpersonnel,underminingpolicyobjectiveson skills development and transfer.
• 488.The OAG identified structural legal and regulatory gaps within the petroleum framework.TheEnergy andPetroleumRegulatory Authority(EPRA),while exercising criticaloversight functions,is notexplicitly anchoredwithin thePetroleumAct,creating institutional ambiguity. The legal framework lacks clear reporting standards,audit requirements,procurementsafeguards,andproceduresgoverningthe allocationortransfer ofpetroleumrights.UncertaintysurroundingGovernmentparticipationlevelsinupstream operationsfurther complicatesfiscal planning.Members expressed support for legislative clarification to strengthenregulatory certainty andenforcement.

489. Concernswere alsoraisedregarding inconsistenciesbetween theFieldDevelopment Plan and statutory provisions.These include proposals for unitization arrangements inconsistentwith existinglegalcriteria,requests toincreasecostrecoverylimits beyond

revenuesifapprovedwithoutacomprehensivefiscalreview.Thelocalcontentplanwas notedto lackmeasurable targets,timelines,and implementation indicators necessaryfor accountability.

• 490.On transparency,the Auditor-General observed that Kenya's non-membership in the ExtractiveIndustries TransparencyInitiative(EITI)limitspublic disclosure standards and may affect investor confidence.Members encouraged considerationofEITI accession to alignKenyawithinternationalgovernancebenchmarks.
• 491.Environmental andfinancialrisksassociatedwith decommissioningwerehighlighted asa critical gradual concern.Theproposed schedule for contractor contributionsto the Decommissioning Fund begins a decade after projected production, start, contrary to internationalbestpractice,whichfavoursearlyaccumulationtomitigatefutureliabilities. TheOAGrecommendedbenchmarkingagainstestablishedpetroleumjurisdictions and committedtofuture auditson decommissioning andenvironmentalcompliance frameworks.
• 492.Regarding institutional capacity,the Auditor-General affirmed that the Office has developed technicalexpertise inpetroleum auditing throughspecialized training and international cooperation.However,documentation gaps and legal ambiguities have constrainedtheeffectivedeploymentofthiscapacity.Plansareunderwaytoestablish a dedicatedpetroleum auditunit,expand advanced training,andutilize externalexpertise wherenecessary.Membersrecognized theimportanceof supportingcapacitystrengthening toensurerobustoversightasthesectormatures.
• 493.TheAuditor-Generalconcluded byurgingParliament toexpedite consideration of ensurecomplianceoftheFieldDevelopmentPlanwithexistinglaw,andrequirethetimely submissionoffinancialandoperationaldocumentation.Enhancedcoordinationwith the Public Sector AccountingStandards Board was also recommended to develop clear reportinganddisclosurestandardstailoredtopetroleumoperations.
• 494.Memberswelcomed theOAG'sfindings,acknowledgingtheirimplicationsforfiscal integrity,governance,andenvironmental stewardship.The Committee emphasized the need forresponsive action by theMinistryresponsible forpetroleum,EPRA,andother stakeholders to close regulatory gaps,enforce contractual obligations,and align sector operationswithstatutoryandinternationalbestpractice.

5.2.5Submissionsby theMinistryofEnergyandPetroleum

OnThursday,12thFebruary2026,theHon.James OpiyoWandayi,EGH,Cabinet Secretary, MinistryofEnergyandPetroleumaccompaniedbyMr.MohamedLiban,CBS,Principal SecretaryStateDepartmentforPetroleum,andotherseniortechnicalofficersfromtheMinistry appearedbeforetheJoint Committee andmade hissubmissionson theFieldDevelopmentPlan andProductionSharingContractsfocusingonprojectreadiness,fiscalsafeguards,community benefitmechanisms,regulatorycompliance,and institutional oversight.The CabinetSecretary briefed the Committee on progress madeininfrastructure planning,regulatorypreparedness, andrevenuemanagementasfollows:

• 495.TheCabinetSecretarycommended the Joint Committee forconductingextensive public participation and stakeholder consultations across six counties,engaging local communities,experts,and sector stakeholders.In response,Members acknowledged the commendationand stressed theimportanceofsustainingongoingengagement,particularly

with host communities,to uphold transparency and foster trust throughout the implementationprocess.

• 496.TheMinistryclarified thatpetroleumrevenueswouldbe sharedin accordancewith statutory provisions between the national government,county governments,and host communities.Apparent discrepancies betweenrevenueprojections presented in different documentswereattributedtotheinclusionofadditionalgovernmentrevenuestreamsinthe FDPmodel.Specifically,theMinistry explained thatwhile the Government'sprofit share iscalculatedatUSD864.48million(KES112.38billion),the totalGovernmentRevenue presented in the FDP is USD 1,047.2million.This higherfigure encompasses theprofit share,surfacefees,trainingfeesper theProduction Sharing Contracts(PC),and theprofit share derivedfrom theGovernment'sparticipation as a contractor.Membersunderscored the importance of transparent reporting andindependent verification to prevent misinterpretation andensurefiscal accountability.
• 497.The distinctionbetweenrecoverable andnon-recoverable costswasexplained,with the CabinetSecretary acknowledgingtheriskofinflated costclaimsandaffirmingtheneedfor rigorous audit mechanisms.Referring to Clause 27and AppendixB of thePSCs,the Ministryclarified that recoverable costs are those directlyincurred onexploration appraisal,development,production,decommissioning,and abandonment.Conversely, non-recoverable costs include expendituresnot directly contributing to operations,such as taxes on income, fines, and unsupported costs.Members stressed that strong cost monitoringisessentialtoprotectpublicrevenueandpreventexcessive costrecovery practices.
• 498.The Ministry outlined plans to support oil production through power infrastructure expansion,including transmission lines andsubstations,with an emphasisonpublic-private partnerships.Theproject'spower demand isprojected at8MWforPhase1(until 2031) and peaking at 34Mw for Phase 2,with the bulkgenerated from associated gas. Additionally,KETRACOplans toconstructa 220kV transmissionline from Turkwel throughLokichar toLodwarby2029atan estimatedcostofUSD100million,alongside a planned substation in Lokichar.Upgrades to crude export infrastructure,including modifications to theKipevu Oil Terminal2andKenyaPetroleum RefineriesLimited (KPRL),are estimated tocost approximatelyKES5.3billion toenabiereceipt and handling systems.

499. TheJoint Committeewasinformed that thePipeline development linkingLokichar to Lamu has been deferred pending increased production volumes,although preparatory technicalwork hasbeen completed.Transportationduringearlyphaseswill relyonroad logistics,withaplanned transition torail onceoperational thresholds aremet.Members requestedcontinuedevaluationofcostefficiencyandsafetyimplications associatedwith transportmodalities.

• 500.The Cabinet Secretaryindicated thata domesticrefinery optionis currently considered economicallyunviableduetoinsufficientcrudevolumesandhighcapitalrequirements. Benchmarking against internationalbestpractices indicated thata competitive inland complex refinery requires a processingcapacityof at least 70,000barrelsper day with a Capex exceedingUSD 2.5billion.TheMinistrynoted that such additional Capexwould render the South Lokichar project uneconomical.Regional benchmarks,including Uganda'srefinery initiative,were cited to contextualize this assessment.Members called forcontinuedbenchmarking andperiodicreassessment asproductionscales.

• 501.Government participation through a 20 percent stakeheld by theNational Oil Corporation ofKenya(NOCK)was discussed.The Ministry acknowledgedcapacity limitations withinNOCK andoutlined ongoing restructuringeffortsto strengthenits operational andfinancialreadiness.Members emphasizedthateffectivestateparticipation requiresrobustinstitutional capacityandgovernancesafeguards.
• 502.The meetinghighlighted thenecessityof strongaudit andmonitoringframeworks to safeguardpublicfunds.TheMinistry indicated thatEPRAwouldmaintainanenhanced fieldpresence to support daily monitoring,while collaborationwithoversightinstitutions, including the Office of the Auditor-General and Controller of Budget,would be strengthened.Regarding themidstreamtariff,theMinistryclarified thattheUSD20/bbl rateisindicativeformodelling;actual tariffswillbereviewed,approved,andgazettedby EPRAuponapplication.
• 503.Seven draftpetroleumregulations arecurrentlyundergoingpublicreview andwill be sharedwithParliamentbeforeCabinetconsideration.Membersstressed thatregulatory clarity is essential to enforce local content obligations,cost recovery standards,and environmentalcompliance.
• 504.The CabinetSecretary confirmed that the statutory communityrevenue sharewill be administeredthrough county-level trustfunds,with Turkana Countyprogressing toward operationalization.Local contentcommitmentswereemphasized,particularly employment opportunities andsupplychainparticipationforhostcommunities.
• 505.Security concernsinTurkana and surroundingregionswere acknowledged,with the Ministrycoordinatingwith theMinistryofInteriortoaddressoperational stabilityand communitysafety.Membershighlighted thepoliticalandsocial sensitivitiessurrounding land compensation,displacement,andlocal expectations,urgingproactivecommunication andconflictmitigation.
• 506.Membersraised concernsregarding transparency lessons from theEarlyOil Pilot Scheme (EOPS),stressing theimportance of applying corrective measures to the main project.The need to preventcostshiftingbetweencontract blocks,independentlyverify productionflows,andclarifyrecoverablecostthresholdswas alsoemphasized.
• 507.The engagement concludedwithagreement toproceed towardFDPratification subject tocontinued clarification on oversightsafeguards,costrecovery controls,andcommunity benefit structures.TheMinistry committed to:strengthening cost auditmechanismsin collaborationwithEPRAandoversightbodies;acceleratingrestructuringandcapacity building within NOCK;sharing draft petroleum regulations with parliamentary committees;supporting the establishment of community trust funds;enhancingfield monitoring capacity;sustaining engagement with host communities;coordinating interministerial efforts on water,transport,and security infrastructure;and benchmarking regionalrefineryandinfrastructuremodels.
• 508.TheCommitteeemphasized thateffectiveimplementationwilldependon sustained transparency,institutionalreadiness,andresponsiveness to communityconcerns.

5.2.6 Submission by theKenya Revenue Authorities (KRA)

OnThursday,12thFebruary2026,theJointCommitteemetwiththeKenyaRevenueAuthority (KRA),led by Mr.Weldon Ng2eno, Commissioner for Large and Medium Taxpayers Department,representingtheCommissionerGeneralofKRA.Hewas accompaniedbyofficers drawn from Customs,International Tax,Policy and Tax Advisory,Media Liaison,and the EnergySectorUnits.Themeetingexamined thetaxationframeworkgoverningoilexploration andproduction activitiesinKenya,withparticular focus on thetransferofTullow Oil Kenya BV'sbusiness interests toAuron EnergyE&PLimited,an affiliate of Gulf EnergyLtd.The session aimed to strengthen parliamentary oversight on fiscal risk management, tax compliance,andrevenuesafeguardswithin thepetroleum sector.

• 509.KRA outlined the corporate structure andrelationships relevant to the transaction, includingTullowKenyaBV,TullowOverseasHoldingBV,TullowOil PLC,formerjoint venturepartnersAfrica Oil Kenya BV andTotal Energies,and the acquiring entitiesAuron EnergyE&PLimited and GulfEnergyLtd.TheAuthorityemphasized that the complexity ofmultinational corporate structuresnecessitates strong transfer pricing oversight to safeguarddomestictaxinterests.
• 510.Tullow Oil Kenya BV operated as a Kenyan branchof TullowOverseas HoldingBV, a Netherlands-incorporatedentitywhoseultimate parent companyisTullowOil PLC,listed on the London Stock Exchange.Historically,Tullow operated Blocks 10BB,13T,and 10BAunderjoint venture arrangementswithAfrica Oil KenyaBVandTotal Energies.By 2025,the joint venture partners had relinquished their participating interests,leaving Tullowasthesoleoperator.
• 511.In2025,TullowOverseasHoldingBVcompleted thesaleofitsKenyan assetstoAuron EnergyE&PLimitedforaminimum consideration ofUSD120million.The transaction wasstructuredasstagedpayments,USD40millionpayableatcompletion,USD40million by June2026,andUSD 40millionupon commencementof production.In addition,Tullow retainedrightstoquarterlyroyaltypaymentscalculated atUSD0.5perbarrelmultipliedby 80percent ofproduction,alongside a contractualback-in"optionfor a30percent stake in future developmentphases.

512. KRA conducteda tax auditcoveringtheperiod2020-2025followingtheasset transfer. The audit resultedin tax assessments totaling approximatelyKES23.1billion,comprising capital gains taxofKES4.6billion,VATofKES 18.3billion,andwithholding taxes amountingtoKES128.5million.The taxpayer hasformallyobjected totheassessment, andthematterremainsunderstatutoryreviewprocesses.

• 513.The Authority further reported that cumuiative import tax exemptions granted to petroleum operators,including TullowKenya BV,Eni Kenya BV,and AnadarkoKenya, amounted toapproximatelyKES12.47billion,primarilyrelatingtoimportedequipment used in exploration activities.KRA underscored that while such exemptions may incentivizecapitalinvestment,they alsoreducefiscalvisibilityandrequirecarefulpolicy balance.
• 514.KRA provideda comprehensive overview of thepetroleum taxation environment, includingVATontaxablesupplies,corporationincometaxonprofits,PAYEobligations for employees,withholdingVATon supplierpayments,andwithholding income tax on dividends,intrest,androyalties.GulfEnrgystaxregistrations,coveringAT,corporat income tax,PAYE,rentalwithholding,andVATwithholding,were confirmed asactive withintheiTaxframework.
• 515.TheAuthority explained thatintercompany financing arrangementswithin petroleum operations aregoverned bySection16(2)G)of theIncomeTaxAct andParagraph18ofthe Ninth Schedule.However,Legal NoticeNo.91of2015exempts certain foreign-sourced

loaninterestpaymentsfromwithholding tax,aprovisionKRA identifiedas creating potentialrevenueleakagerisks.

• 516.KRAhighlightedthatpetroleumsectoroperationspresentelevated transferpricing risks,particularly in drilling services,logistics,procurement,management fees,and contractor-linkedservices.EnforcementreliesonSection18(3)oftheIncomeTaxAct, whichmandatesarm's-lengthpricingforrelated-partytransactions.Aspecialized transfer pricing unit conducts continuous monitoring,supported by international cooperation, regulatoryframeworks,andperiodictaxreviews.
• 517.To strengthenfiscalintegrity,KRAproposedrevokingLegal NoticeNo.91 torestore withholdingtaxonforeignloaninterest,amendingSection16(2)i)toaddressnon-taxable interestdeductions,andmodernizingtheNinthScheduletoreflectevolvingpetroleum explorationpractices.TheAuthorityrecommendedeliminatingblanketwithholdingtax exemptionsforbothlocalandimportedservices,advocatinginsteadforrefund-based mechanisms that preserve audit trails.Enhanced collaboration with energy sector stakeholders was alsoproposed toensure accurate costverificationandrevenue accountability.
• 518.Membersinterrogatedwhetherblanketexemptions alignwithKenya'slong-termfiscal interests,themeritsofexemptionsversuscredit/refundsystems,thefairnessofpetroleum that targeted exemptions may support investment,but blanket exemptions undermine transparency.TheAuthorityemphasizedthatVATandwithholdingtaxrefundsprovide accountabilitysafeguards,confirmeditsauditindependence,andhighlighteddigitizedtax systemsthat enhancetraceability.Earlypilotoil exportswerenoted asgeneratingminimal corporatetax,withlargerrevenuesanticipatedoncecommercialproductionscales.
• 519.KRA furtherstatedthatitscentralizedcomplianceinfrastructureoffers stronger revenuemanagementwouldimproveefficiencyandoversight.Collaborationwiththe MinistryofEnergywasrecommendedtovalidateexplorationexpendituresbeforerevenue allocation.
• 520.TheCommitteeraisedconcernsregardingtheperceivedharshnessoftheKRA toward small businessescompared tolargeoil firms.TheKRAcounteredbyadvocatingfora refund-based system rather than upfrontexemptions,whichwould forcecompaniesto prove theircostsbeforereceiving taxcredits,thereby enhancing accountability.
• 521.Regarding technical capacity,the Committeequestioned the KRA's abilityto independently auditcomplexpetroleumcosts.CommissionerNg'eno assuredmembersthat the KRA utilizes specialized transfer pricing units and internationalexchange-of informationnetworkstotrackmultinationalfinancialflows.Healsoclarifiedthatwhile earlypilotoilexportsgeneratedminimalcorporatetaxduetohighexplorationcostsnotyet beingfullycovered,largerrevenues areanticipatedonce commercialproductionscales.To mitigatefuturerisks,theKRAproposedrevokingLegalNoticeNo.91of2015,which exemptsforeignloaninterestfromwithholdingtax,andmodernizingtheNinthSchedule oftheIncomeTaxActtoalignwithglobalpetroleumpractices.
• 522.TheCommitteeundertooktoreviewKRA'spolicyrecommendationsconcerningtax exemptions,refundframeworks,andlegislativereforms.Stakeholdersagreed topursue coordinatedmechanismsforpetroleumcostverificationandrevenuegovernance.The Authorityalsoproposed thattheKRAbedirectlyinvolvedinthecollectionofthe

Government's share offuture crudeoil sales toensuremaximumrevenue accountability. TheCommitteeundertooktoreviewthesepolicyrecommendations,andbothparties agreed topursuecoordinatedmechanismsforpetroleumcostverificationandrevenuegovernance.

5.2.7Ministry ofInterior andNationalAdministration

On Thursday,12 February 2026,the Joint Committee met the Ministry of Interior and National Administration,which is the state organ of the Government responsible for maintaining internal security,overseeingationalregistrationservices,managingimmigration policies,andcoordinatingNational Governmentfunctions.

The Cabinet Secretary (CS) for Interior and National Administration,Hon.Kipchumba Murkomen,E.G.H,accompanied by the Inspector General of Police,Mr.Douglas Kanja Kirocho,CBS,OGw,and senior security officials,appeared before theJoint Committee to outline thesecurity architecturefor theproposedoilproject asfollows:

• 523.In his opening remarks,the Cabinet Secretary emphasized that security planningmust emphasized that no region in Kenya is inaccessible due to insecurity,although he acknowledged theuniquechallengespresent in theNorthRift.He continuedby stating that theMinistryhas adopted a multi-agencyframeworkinvolving theNational PoliceService (NPS),KenyaDefense Forces(KDF),and theNational IntelligenceService(NIS)to secure theproject.The CabinetSecretary stressed that the development of energyinfrastructure shouldoccur concurrentlywiththe establishmentof permanentsecurity facilities,such as policestations,toensurelong-term stabilityintheregion.
• 524.TheNational PoliceService conductedanin-depth securityrisk assessment focused on upstream oil production areas inTurkana County,includingblocksT6 and T7in theSouth Lokichar Basin,feeder roads,storage sites,and designated transportation corridors.The assessmentidentifiedprimary threats,includinginter-communalconflicts,banditry,cattle rustling,cross-border incursions,and the proliferation of small arms.Furthermore,socioemployment opportunities,and resource benefit sharing were highlighted as potential drivers of conflict if not proactively managed. Specific operational vulnerabilities identified included industrial sabotage, insider facilitation risks, organized criminal interference, and opportunistic activities like illicit siphoning or vandalism targeting oil transportconvoys.
• 525.Tomitigate theserisks,theMinistryplans todeploy additional officersfrom the current training cohort,strengthen the Critical Infrastructure Protection Unit (CIPU) within the County,and establish patrol bases along the transport corridor.The strategy also incorporates enhanced patrols,intelligence-led operations in high-risk zones,and a communitypolicingframeworktoaddressgrievancesbeforetheyescalateintoviolence. TheServicewill alsoseekareviewandenhancementoffuel allocationsforpolicemotor vehiclestoadequatelysupporttheseoperations.
• 526.The CabinetSecretary detailed how lessonsfrom theEarly Oil Pilot Scheme(EOPS) have been incorporated into the current Field Development Plan (FDP).The EOPS experiencerevealedthatprevioussecuritydeploymentswereoftenreactiveandadhoc. Consequently,the new plan establishes a defined intelligence and emergency response frameworkwithapermanent corridor-baseddeploymentmodel anda structuredIncident CommandSystem(ICS).

• 527.TheMinistry alsonoted that thedirect handlingof compensation byprivate entities previously created loopholes for fraudulent claims and incitement;therefore,the FDP mandatesastructuredcompensationframeworkcoordinatedbyrelevantgovernment agenciesfor verification and documentation through public institutions.Additionally,to counter politicalmobilization that exploits community ignorance,the plan includes enhanced public sensitization,civic education forums,and direct engagementwithelders
• 528.During the interactive session,the committee members engaged the Ministry on resource allocation andlogistical planning.Concernswereraisedregarding thebudgetary provisions for these extensive security measures.In response, the Cabinet Secretary clarified that project-specific security costs should be integrated into theMinistryof Energy's budget,similar to othermajor infrastructure projects like theHorn of Africa Gateway.Henoted thattheCountySecurityandIntelligenceCommittee iscurrently consultingwith the Gulf CompanyresponsibleforextractioninTurkanatofinalize these budgetaryprovisionsandsecurity arrangementsforPhaseIandPhaseII.He argued that theinvestmentinsecurityinfrastructure shouldbe treated as adirectprojectcost.
• 529.Themembers highlighted the operational challengesposed by the difficult terrain, noting thatbanditsoftenutilizeinaccessibleareasthatstandardpolicevehiclescannot reach.TheCSconcurred,statingthat theconstructionofsecurityroadsmustbepartofthe project deliverables to open up these areas,thereby simultaneously facilitating oil operations and reducing marginalization,which drivesinsecurity.
• 530.Membersraised specificoperational concernsregarding themovementof crudeoiland local socio-economic friction.Membersinquired about the securityof the 600 trucks expectedtotraversemultiplecounties,particularlyattheoff-takepointinMombasa.The Ministry assured thecommittee that allmotorvehiclestransportingcrudeoilwillmovein structuredconvoysunderarmedpoliceescort fromproduction sites todesignated routestopreventillegaldiversionand theuseof technologyforreal-time tracking.
• 531.Issues regarding illegal gold miningwere also raised,with members noting that these activities often distract security personnel and provide cover for bandits.The CS mining,whichdistorts thesecurityfocusintheregion.Additionally,themembersraised concerns aboutwater resources and landspeculation,to which the Cabinet Secretary responded thatthegovernmentplanstousetechnology,includingdrones,tomonitorthreats and manage resource-based conflicts.The framework also specifically prepares for emergencies such as oil spills,environmental contamination,and fire outbreaks at productionorstoragesites.
• 532.Thesession concludedwithrobust discussions on communitytrustandhistorical grievances.Membersraised concerns about the effectivenessofKDF corridors and the recoveryofstolenlivestock,noting that localcommunitieshad seenlimited tangible benefits from previous oil-related activities.Additional concerns werehighlighted regardingperceivedbiasindisarmamentexercises.
• 533.TheCabinetSecretaryrespondedbyexplainingthe complexitiesof disarmamentdue toporousborders,which allowfortherearming of bandits despitesuccessful operations. He emphasized thatwhilesecurity operations are ongoingandintelligence-led,sustainable peace requires addressing the root cause of marginalization.Regarding the financial proceedsfrom theEOPS,theCSdeferredtotheMinistryofEnergybutpledged tofollow

up onpresidential directivesregardingthereconstruction ofschoolsdestroyedbybanditry. The consensus was that while security forces are prepared, success relies on interministerialcooperationtodeliverdevelopmentalongsidesecurity.

5.2.8SubmissionsbyGulf EnergyE&PBV

OnThursday,12February2026,theJoint Committee conveneda critical oversight session to deliberate on theFieldDevelopment Plan(FDP) andProductionSharing Contracts(PSCs)for BlocksT6andT7in theSouthLokicharBasin.Thesessionfollowed aformalinvitationtothe managementof Gulf EnergyE&PBV(formerlyTullowKenyaBV),anindependentupstream petroleum companyincorporatedin theNetherlandswith abranchinKenya.Led by Chairman Francis Njogu and Group CEO Paul Limoh,the Gulf Energy team provided submissions addressingproject timelines,financial capacity,and the specific fiscal concessionsnecessary to achieve aFinal InvestmentDecision(FID)asfollows:

• 534.On an assessment of the Field Development Plan,particularly concerningproject timelines andcommercialviability,theJoint CommitteewasinformedthatSouthLokichar FDPpresents a coherent,well-structured,and technicallymaturepathway forunlocking Kenya's largest onshore petroleum development.The plan demonstrates clear scheduling, phased riskreduction,and strong economicrationale.

535. TheFDPemploys a two-phase development approach that is standardfor large onshore basins and effectively derisksearly capital deployment andallows for earlyrevenue generationaswell.Phasedevelopmcnt approach-risksearlycapital deployment andallows for carlyrevenue generation aswell.Phase 1(2026-2031) consisting of48wells inNgamia &Amosing ficld with expected Early Production Facilities(EPFs) delivery of 20,000 barrels of crude per day at peakproductionwithfirst oil targeted inDecember 2026. 536. Phase2,projected to commencein2032,scales production to50,000barrelsper day by adding the Twiga,Ekales,Agete,and Etom fields,with logistics transitioning torail transport usingapproximately 155wagonsper day.Theprojectfacesunique technical challenges,asthe crude iswaxy and solidifies at room temperature,requiring specialized heating.Despite these complexities,Gulf Energy asserted theproject's maturity,citinga robust datasetof41wellsand950km2of3Dseismicdata supportinga2Cresourcebase of326-million-barrels 537. On the expected revenue-and profit from the oil proceeds in both Phases,the Joint Committeewasinformed thattheProfit Oil inbothphases are allocated accordingto the ProductionSharing Contractprofitoil split.ForPhases1 and 2,the split is50:50%since, after deducting Cost Oil,there isless than20,000barrelsofoil per day(bopd)inProfit Oil todividebetween theGovernmentofKenya(GOK)and theContractor.

| | | Government Share | |-----|-------|--------------------| | 20 | 50.0% | 50.0% | | 50 | 40.0% | 60.0% | | 100 | 35.0% | 65.0% | | 150 | 30.0% | 70.0% | | 151 | 25.0% | 75.0% |

• 538.Additionally,the government participates as a Contractor,receiving upto20%of the Contractor Group'sProfitOil,asshowninTable2

| | REVINUE | REVINUE | REVINUE | COSTOIL | COSTOIL | COSTOIL | COSTOIL | COSTOIL | COSTOIL | PROFITOIL | PROFITOIL | PROFITOIL | PROFITOIL | |------|-------------------------|----------------------|----------------------------------------------|--------------------|-----------------------------|---------------------|---------------------------------------|----------------------------|------------------------------|--------------------------------|---------------------------------------|---------------------------------------------------|--------------------------------| | Year | uCs (KES Reven Billion) | ICosts (KES Billion) | Revenues Transpor LCosts Netot (KES Billion) | (KES Billion) Opex | Taxes& Levies (KES Billion) | (KES Billion) Capex | Explorat Appraisa ion& 1(KES Billion) | Abando (KES ument Billion) | Total Cost Oil (KES Billion) | Profit Total Oil (KES Billion) | Shareof Profit Govt Oil (KES Billion) | Contractor Shareof Govtas Profi Oil (KES Billion) | ProfirC Share GBL (KES Billion | | 2025 | | | | | | | | | | | | | | | 2026 | t0 | 0.1 | 0.2 | 0.2 | | | | | 0.2 | 0.0 | 0.02 | 0.0 | 0.0 | | 2027 | 29.7 | 10.5 | 19.2 | 11.6 | 0.2 | 4.5 | | | 16.3 | 2.9 | 1.44 | 0.3 | 1.1 | | 2028 | 50.2 | 17.8 | 32.4 | 11.4 | 0.0 | 16.1 | | | 27.5 | 4.9 | 2.43 | 0.5 | 1.9 | | 2029 | 50.0 | 17.7 | 32.3 | 11.5 | 0.0 | 9.7 | 6.3 | | 27.4 | 4.8 | 2.42 | 0.5 | 1.9 | | 2030 | 41.9 | 14.8 | 27.1 | 11.5 | 0.0 | 3.0 | 8.5 | | 23.0 | 4.1 | 2.03 | 0.4 | 1.6 | | 2031 | 38.0 | 13.5 | 24.6 | 11.5 | 0.5 | 8.9 | | | 20.9 | 3.7 | 1.84 | 0.4 | 1.5 | | 2032 | 122.2 | 43.3 | 78.9 | 7.7 | 0.3 | 59.1 | | | 67.1 | 11.8 | 5.92 | 1.2 | 4.7 | | 2033 | 134.0 | 47.5 | 86.6 | 7.9 | 0.3 | 64.4 | 1.0 | | 73.6 | 13.0 | 6.49 | 1.3 | 5.2 | | 2034 | 134.0 | 47.5 | 86.6 | 8.0 | 0.3 | 47.9 | 17.4 | | 73.6 | 13.0 | 6.49 | 1.3 | 5.2 | | 2035 | 134.0 | 47.5 | 86.6 | 8.1 | 0.3 | 32.2 | 33.0 | | 73.6 | 13.0 | 6.49 | 1.3 | 5.2 | | 2036 | 134.4 | 47.6 | 86.8 | 8.2 | 0.3 | 22.7 | 42.6 | | 73.8 | 13.0 | 6.51 | 1.3 | 5.2 | | 2037 | 133.2 | 47.1 | 86.0 | 8.4 | 0.4 | 29.8 | 34.5 | | 73.1 | 12.9 | 6.45 | 1.3 | 5.2 | | 2038 | 131.6 | 46.6 | 85.0 | 8.5 | 0.5 | 46.8 | 16.4 | | 72.2 | 12.7 | 6.37 | 1.3 | 5.1 | | 2039 | 128.6 | 45.5 | 83.1 | 8.5 | 0.5 | 47.4 | 14.2 | | 70.6 | 12.5 | 6.23 | 1.2 | 5.0 | | | 126.4 | 44.7 | 81.6 | 8.6 | 0.5 | 52.0 | 8 | | 69.4 | 12.2 | 6.12 | 1.2 | 4.9 | | | C911 | 41.3 | 75.3 | 8.6 | 0.5 | 53.0 | 1.8 | | 64.0 | 11.3 | 5.65 | 1.1 | 4.5 | | 2042 | 117.8 | 41.7 | 76.1 | 8.7 | 0.5 | 54.9 | 0.6 | | 64.7 | 11.4 | 5.71 | 1.1 | 4.6 | | 2043 | 110.5 | 39.1 | 71.4 | 8.7 | 0.5 | 51.5 | | | 60.7 | 10.7 | 5.35 | 1.1 | 4.3 | | 07 | 96.5 | 34.2 | 62.3 | 8.7 | 0.5 | 43.8 | | | 53.0 | 9.4 | 4.68 | 0.9 | 3.7 | | 2045 | 88.5 | 31.3 | 57.2 | 8.7 | 0.3 | 35.0 | 4.6 | | 48.6 | 8.6 | 4.29 | 0.9 | 3.4 | | 2046 | 86.1 | 30.5 | 55.6 | 8.7 | 0.2 | 16.5 | 21.9 | | 47.3 | 8.3 | 4.17 | 0.8 | 3.3 |

Table2:Revenue,CostOilandProfitOil Splitsforeachparty(inKESExchangeRate130KESto1USD)

| 2047 | 84.1 | 29.8 | 54.3 | 8.7 | 0.2 | 13.8 | 23.4 | | 46.2 | 8.1 | 4.07 | 0.8 | 3.3 | |--------|---------|--------|---------|-------|-------|--------|--------|------|---------|-------|--------|-------|-------| | 2048 | 78.6 | 27.8 | 50.8 | 8.7 | 0.2 | 10.3 | 24.0 | | 43.2 | 7.6 | 3.81 | 0.8 | 3.0 | | 2049 | 75.2 | 26.6 | 48.6 | 8.7 | 0.2 | 9.1 | 23.2 | | 41.3 | 7.3 | 3.64 | 0.7 | 2.9 | | 2050 | 77.2 | 27.3 | 49.9 | 8.7 | 0.2 | 8.7 | 11.1 | 13.7 | 42.4 | 7.5 | 3.74 | 0.7 | 3.0 | | Total | 2,319.5 | 821.1 | 1,498.4 | 218.5 | 7.6 | 740.9 | 293.0 | 13.7 | 1,273.7 | 224.8 | 112.4 | 22.5 | 89.9 |

• 539.On detailedjustificationfor thefiscal concessions sought under theFDPincluding any requested taxexemptionsand theproposedincreaseincostrecoveryceilingfrom55%in block10BBand65%inblock13Tto85%,theJointCommitteewasinformedthateven thoughupfront taxessuchasAT,WHT,RDL,andIDFarecostrecoverable,theyincrease the overall development cost.Furthermore,these taxes increase project financing costs, addingunnecessary expenses to the overall project.

540. The 85%limit acts as a cap on therecovery of project expenditures,whichinclude operational expenses(Opex),developmentcosts,licensefees,taxes,andboth historicaland currentexploration costs.This ceiling defines themaximum amounta contractor can rccover annuallyfromrevenue.Thecostrecoveryframeworkis designedtoensure that before the contractor fully recoups its capital expenditures,a portion of the revenues is allocated toprofit oil.

• 541.Additionally, the project is legally eligible for RDL (Risk Discovery Loss)and IDF (ImportDeclarationFees)exemptions,as the investment exceedsKES50billion.

542. DuetothedownwardrevisionofSTOIIP(StockTankOil InitiallyInPlace),theproject is classified as a marginal greenfield development and faces financing challenges, especiallywiththeglobalshiftawayfromhydrocarbons.Thewithdrawalofformerpartners underscorestheneedforfiscal support to uphold theprinciplesof mutual economicbenefit intheProduction-SharingContract(PSC). 543. The Contractor'sproposal for an85%ceilingisconsistentwithestablishedregional practice.Aligning Kenya's terms with thesenormswould strengthen the countrys competitiveposition,improve theproject'sbankability,andhelp attractthecapitalrequired toadvance theSouthLokichar development towardproduction-ultimately supportingthe deliveryof long-termeconomicbenefitstothenation. 544. On the assessment of Gulf Energy'sfinancial and technical capacity to undertakeand fund the project,the Joint Committee wasinformed that Gulf Energy E&P BVis an indigenouslyownedcompanywith strongfinancialresourcestosupportcapital-intensive projects,such as the South Lokichar Oil Project.The company has established robust financial part.rerships and active credit lineswith teadinglocal and international banking and financial institutions.These institutions currently support Gulf Energy E&P BV's project-related-operations 545. Additionally,GulfEnergyE&PBVhasthenecessaryexpertiseinthepetroleumsector. For theSouth Lokichar Oil Project,the companyhasrecruited highlyexperiencedKenyan upstream petroleum professionals,both from within Kenya and from the diaspora. Additionally,ithas partnered with leading globalupstream petroleum development companies.Thesestrategiccollaborationsaimtoensurethattheprojectmeetsthehighest standardsoftechnical andinfrastructurereadiness.

• 546.TheJoint Committeefurther inquired about the company'sownership and financial freedom.Gulf Energyconfirmed that thegroup is100%indigenouslyowned,with a50:50 beneficial ownership split betweenFrancisNjogu andPaul Limoh,and that this ownership structurehasremainedconsistentthroughtheacquisitionoftheentityfromTullow Overseas Holdings BV.
• 547.The session concluded with intense deliberations on local content,community trust, andhistoricalcostaudits.GulfEnergycommitted to maximizing localemployment, projecting thecreationofover3,0o0 direct,indirect,andinducedjobsandan estimated

local spendofUSD7.6billioninoperatingexpenses.Committeemembersraised concerns overgoldplatingandtheverificationofhistoricalexplorationcostsinheritedfromthe previousoperator.

548. GulfEnergyreaffirmed thatallcostrecoveryissubjecttogovernmentaudit andthat the85%ceilingensures the government stillreceivesprofit oil fromdayone.The CommitteerequestedfurtherlegalreviewsofthePetroleumActanddetailedprojections for the decommissioningfund,which GulfEnergyjustifiedasarecoverablePetroleum CostunderClause42ofthePSCbeforeconcludingtheirjointconsideration.

5.2.9Submissionsby theOfficeoftheAttorney Generaland Department ofJustice

On Friday,13thFebruary2026,theJointCommitteemetthe StateLawOffice,whichwas represented by theSolicitor General of Kenya,Shadrack J.Mose,CBS.

• 549.Theyprovideda comprehensivelegal opinionconfirmingthat thesequencefollowed in the approvaloftheFDPanditssubmissiontoParliamentisonsolid legal ground.The originalPSCsforBlocks10BBand13T,signedin2007and2008,remainvalidunderthe transitionaland savingprovisionsof Section 128 of thePetroleum Act 2019.These provisions ensure that contractual rights,privileges,and obligations existingunder the repealed1984Act arepreservedanddeemed tohavebeenmade under thecurrent legal framework.
• 550.TheSolicitorGeneralnoted that at the timeof theoriginalsigning,therewas no constitutionalrequirementforparliamentaryratification.However,thecurrentsubmission oftheFDPalongsidethePSCsisundertakenincompliancewithSection31of the PetroleumAct2019andArticle71oftheConstitution.TheAttorneyGeneralemphasized thatexploitationrightsmay onlybe exercised once this constitutionalratificationprocess is completed.
• 551.TheSolicitor Generalalsoraised concernsregardinglong-term environmentaland fiscal liabilities.To safeguard the State,particularlyincases ofcontractorinsolvency,the FDPmusteventuallyincludeacomprehensiveDecommissioningandAbandonmentPlan supported byfinancialsecurityinstruments asrequiredbySection39ofthePetroleumAct. Additionally,theofficerecommendedthatfuturereviewsaddressroutineflaring,which currently contradicts Section 62 of the Petroleum Actand Kenya's international commitmentstogasflaringreduction.
• 552.The Business Registration Service,through the Director General, Mr. Kenneth Gathuma,HSC,thenprovidedaformal timelinetoclarifythelegalidentity andownership structureofthecontractorduringtheFDPapprovalprocess.Accordingtocorporate records,thetransitionfromTullowKenyaBVto GulfEnergyENPLimitedfollowed the statutoryrequirementsofSection26ofthePetroleumAct.TheCabinetSecretaryassented totheDeedsofAssignmentforBlocks10BA,10BB,and13TonSeptember18,2025,after satisfyingtherequirementsregardingfinancial and technical capacity.

| KeyMilestone | Date | Legal Action | |----------------------|--------------------|--------------------------------------------------------------------| | Initial Registration | September 15, 2012 | TullowKenyaBVissuedacertificateofcompliance. | | FDPSubmission | September 30, 2025 | GulfEnergyformallysubmittedtheFDPtoEPRA. | | Name Change | October 13, 2025 | Formal change to Gulf Energy ENP Limited registered. | | FDPApproval | November 5, 2025 | The CabinetSecretary approved theFDPfollowing EPRArecommendations. |

553. TheSolicitor General further confirmed that therenaming of theblocks toT6and T7 isapurely administrativeactionunderSection15(l)of thePetroleumActanddoesnot constitute avariationof the existing contracts,provided thegeographicalacreageremains unchanged. 2. 554.TheSolicitor General concluded that the transaction and theproposed FDPcomply withKenya'sgoverninglaws.Theoffice emphasizedthat Clause40of thePSCallowsfor contractual adjustments to maintain economic equilibrium as laws change,which serves as a standard mechanism in long-termresource contracts.Provided that theidentifiedgaps in decommissioning,local content,and fiscal coordinationare addressed throughtheFDP's regularupdate cycle,the document is legally sufficient forparliamentary consideration.

5.2.10 Submissionby CentralBankof Kenya(CBK)

OnFriday,13February2026,theJointCommitteemetwiththeGovernoroftheCentralBank of Kenya(CBK),Dr.Kamau Thugge,C.B.S.,to deliberate on themacroeconomicimplications of the Field Development Plan(FDP)for theSouthLokichar Basin.The session focused on howtheanticipated$3billionto$4billioninvestment andsubsequentoilexportswouldimpact Kenya's monetary poliey,foreign exchange reserves,and overall financial stability.

• 555.The Governor outlined that while the project, currently operated by Gulf Energy after it acquiredtheinterestsformerlyheld byTullowOilandAfricaOil,targetspeakproduction of80,000 to100,000barrelsperday,itsprimarysignificance totheCBKliesinitscapacity tostrengthenthenational balanceofpayments.
• 556.The Governor emphasized that the influxofForeignDirectInvestment(FDI) during theupstream developmentphasewouldprovidea significantboost to the economy,noting that theprojected$3billionto$4billion investment surpassesKenya'stypical annual FDI ofapproximately $1 billion.Onceproduction commences,the CBKanticipates that oil exportswill generate substantial foreign exchangeinflows,projected atroughly $766.5 millionannuallybasedonanestimateofS60perbarrel.
• 557.An important portion of the Governor's testimony addressed the Dutch Disease,a phenomenonwherea surgeinnaturalresourcerevenue leadstoarapid appreciationofthe localcurrency,potentiallymakingotherexportsectorsliketea,coffee,andmanufacturing uncompetitive.Tomanage thisrisk,theGovernorstated thattheCBKwouldaccumulate reserves to avoid"disorderly adjustments"in the foreign exchange market while using monetarypolicyoperationstoalign theKenyaShillingOvernightAverage(KESONIA) with the Central Bank Rate(CBR).The Governor of the CBK also highlighted the

importanceofa structuredfiscalframework,citingthesovereignwealthfundsofNorway and Chileasbenchmarksforsavingwindfall revenues andreducinginflationvolatility.

• 558.During the interactive session,Committee members raised concernsregarding the volatilityofglobaloilpricesandthetransparencyofthecurrentownershipstructure.The Governor clarified thatwhile GulfEnergy holds the majority stake,theNational Oil CorporationofKenya(NOCK)retainsa20%protectionshareintheproject.Membersalso queried theimpactofoilproductionondomesticinterestrates;theGovernorexplainedthat as the government receives more resource-funded revenue,its domestic borrowing requirementsshoulddecrease,theoreticallyloweringinterestratesandstimulatingprivate sectorinvestment.Henoted that theCBKhas alreadystrengthened thefinancial systemby increasingtheminimumcorecapitalrequirementsforcommercialbankstoKES10billion toensuretheycansupportlarge-scaleinfrastructureprojects.
• 559.The session concluded with adiscussion on the transition to a new interest rate framework.TheGovernorinformed theCommitteethat,asofDecember1,2025,allnew loansarebeingbenchmarkedagainsttheKESONIA-basedframeworktoensurethatCBK policy.decisions,such as the recentreduction of the CBR to8.75%,are reflected more quicklyin commercial lendingrates.Hereaffirmed the CBK's commitment tomaintaining pricestability andachievingthe5%inflationtargetwhilefacilitatingtheeconomicgrowth anticipatedfromtheSouthLokichardevelopment.

5.2.11 SubmissionbyTheNational Lands Commission(NLC)

On Monday,16th February 2026,Ms.Kabale Tache Arero,MBS,Chief Executive Officer/Commission Secretary National Land Commission appeared before the Joint Committeeandsubmittedasfollows:

560. Onthe status of land acquisitionforinfrastructurerelated to theoilproject,including productionfacilities,pipelines,roads andotherinstallations,the Committeewasinformed that thepreviousnoticesrelatingto theproject hadbeenissuedin2016,2019and2022.At the time,theCommissiongazetted theproject usinggeographical coordinates dueto theun surveyednatureoftheland.TheCommission issueda freshGazetteNoticeinOctober 2025expressing theintention toacquire theland andtoundertakestatutoryinquiries followingexpiryofthe statutorytimelines. 2. 561.TheCommitteewasinforimedthat theprojectfootprint comprisesfour(4)polygons and one(1) airstrip i.e Amosing,Twiga,Ngamia and Ekales.In total,approximately 11,354.8hectaresorabout40,000 acres,are tobeinvolvedacross thefourmainfields. Further,the inspections,statutory inquiries,public participation forums stakeholder engagements anddocumentverificationhasbeen undertakeninprogressing the acquisition process.The Commission'svaluationreport is currently underpreparation andis expected tobefinalizedonorbefore27thFebruary2026. 562. On compensationoftheprojectaffectedpersons,theCommitteewasinformed that approvalofvaluationreportstogenerate awardsisastatutoryfunctionoftheCommission sittingas dulyconstituted.Itwasnoted thattheCommissionisnotfullyconstituted following thelapseof tenureofseven(7) Commissionershencenobindingfinancialor land transferdecisions canbemade sinceonlya fullyconstituted Commission,led bya Chairperson,can approve valuation reports and issue final compensation awards,even though the technical preparations, such asinspections and draftvaluations,were ongoing. Thiscoulddelay theFDP'stimeline.

• 563.The Committeewasfurtherinformed that Turkana County didnotyet have a gazetted LandValueIndex,hence,theNLCuses a hybridvaluationapproach thatcombines assessed marketvaluewithstatutoryadditions.
• 564.The 40,000 acres slated for acquisition wasregistered as CommunityLand under 21 distinct title deeds.Asaresult,compensationwouldnotbepaid to individuallandowners but to CommunityLand Management Committces(CLMCs),whichwould administer the funds for collective community benefit.TheNLCemphasized that it was acting asa facilitator and the actual disbursementof fundsdepended on the Ministryof Energy and Petroleum(MoEP)and theNational Treasury releasing thefinalized compensationbudget.
• 565.The large-scale acquisition raised significant concerns among host communities. During thepublicinquiryphase,568formalgrievanceswererecorded.Amajorchallenge wasthepresenceofspeculatorswhosetuptemporarystructures aftergazettementtoinflate compensationclaims.TheNLCinformedtheCommitteethatithadplannedarigorous validation process to distinguish legitimate Project Affected Persons (PAPs) from opportunisticclaims.Additionally,theNLChighlighted thatthe40,o00hectarescoversa larger area thanthe actual operational footprint.Effortswereunderwaytoallowcontrolled grazing access in safe zones to mitigate disruption to pastoralistlivelihoods while maintainingsafetyandfuture explorationbuffers.

5.2.12 The National Treasury and EconomicPlanning

On Monday,16February2026,theCabinetSecretaryforNationalTreasury andEconomic Planninig,theHon.FCPAJohn MbadiNg'ongo,EGH accompanied by other technical officers from theMinistry,appearedbeforetheJoint Committeeandmadethefollowingsubmissions:

• 566.On Fiscal and Financial Considerations,the Joint Committeewas informed that the GovernmentofKenyastandstoearnbetweenUSD1.05billion(atUSD60/bbl)andUSD Direct Government revenues expected to come from profit oil split,Government participation.OnIndirect Revenues,KPRLisprojected to earnKES42.3billion(USD325 million)in storage and handlingrevenues,whileKPAwillgainKES41.9billion(USD322 million)from theNewKipevu Oil Jetty.The Governmentwill alsocollectrevenuesfrom electricity and water consumption, ancillary services and in Road Maintenance Levy.
• 567.On the Macroeconomic Considerations,the Committee was informed that theproject is expected to incur USD 8.2 billion in operating expenses,of which USD 7.6 billion(93%) will be spent locally andUSD5.7billion incapitalexpenditure,ofwhichUSD1.9billion (34%)will alsobe spent locally.It is expected togenerate over3,000 direct,indirect,and inducedjobs,contributingtoPAYEandsocial securityrevenues.Communities along the project corridor will benefit from improved market access,infrastructure,and local businessgrowth.Theprogression of theprojectwill openKenya formoreforeign direct investmentintheoilandgasvaluechainfrominternationalplayers.

568. Onany approval ornecessary assurances givenunderpinning the fiscal concessions soughtintheFDP,theCabinetSecretaryinformedtheCommitteethatmattersoffiscal concessions sought in theFDPshall beguided by theapplicable laws.Article210of the Constitution provides that no tax or licensing fee may be waived,varied,or exempted exceptasprovidedbylegislation.

• 569.The analysisofthe estimatedquantum amount of fiscal concessionssought in theFDP is asfollows:
• 570.Theimplications ofthe concessions onKenya'soil share ofrevenue and contractor'soil share of revenueif theproposed concessionsweregranted orare tobegranted aretabulated below:

| | Cost | Cost | |-------------------------------------|---------------|---------------| | Item | USD (Million) | KES (Million) | | ProjectSpecificFiscal Terms (PSFTs) | | | | 1.VAT Upstream | 269 | 34,970 | | 2.WHTUpstream | 58 | 7,540 | | 3.RDLandImportDuty | 32 | 4,160 | | SUMTOTAL | 359 | 46,670 |

| Revenue(USD million)atUSD 60/bbl | Revenue(USD million)atUSD 60/bbl | Revenue(USD million)atUSD 60/bbl | Revenue(USD million)atUSD 60/bbl | Revenue(USD million)atUSD 60/bbl | |------------------------------------|------------------------------------|-------------------------------------|------------------------------------------------------------|------------------------------------| | | Base Case (PSC Terms) | TaxAsks Granted (VAT, WHT,RDL &IDF) | Harmonization Cost Recovery Limit &Participating Interests | Taxes& Harmonizatio n Allowed | | GOKNetCashFlow | 3,485 | 2,612 | 2,153 | 1,047 | | ContractorNetFree CashFlow | -1,943 | -1,070 | -609 | 497 |

571. TheCommitteewas furtherinformed that thereareno concessions soughtbythe Contractor on the share ofrevenuefromthesaleofcrude.The crudeoil shallbemarketed jointly.The Contractor sought harmonisationof the PSCsofUSD 972million(KES. 126,360,000,000).thecombined fiscal concession during importation ofmaterials for constructionanduponsaleofoil amountstoUsD1,331millionastabulatedbelow:

| | Cost | Cost | |---------------------------------------|---------------|---------------| | Item | USD (Million) | KES (Million) | | Project Specific Fiscal Terms (PSFTs) | | | | 1.VAT Upstream | 269 | 34,970 | | 2.WHTUpstream | 58 | 7,540 | | 3.RDLandImportDuty | 32 | 4,160 | | 4.Harmonisation | 972 | 126,360 | | TOTALPSFTs | 1,331 | 173,030 |

• 572.Further,A review of the fiscalrisk profile associated with the proposed Field DevelopmentPlan(FDP) and theProduction Sharing Contracts(PSCs)for Blocks T6and T7was done.The assessment consideredkey riskvariables including oil pricevolatility, productionunderperformance,costescalation,projectdelays,anduncertaintiesinherentin large-scaleupstreampetroleum developments.
• 573.Phase I of the project shall use existing infrastructure,i.e.,roads and part of KPRL facilities.henablers,such asroads,ower connectivity,rail,water,andpipeline,sve national development and arecontainedin thesector specificdevelopmentplans.
• 574.The project relies on utilisation of the cxisting public infrastructure on a non-exclusive basiswithoutanextra burden to thetaxpayer.
• 575.Multi-agency approach hasbcenadopted toensure that thereis timely delivery of the enablers.
• 576.ThePsC structure providesimportant riskmitigationmeasures including costrecovery ceiling,ring-fencingofcosts,strictapprovalofworkprogrammesandbudgets,auditrights, andphaseddevelopmenttiedtocommercialviability.Thesemechanismscollectivelylimit fiscal exposure while ensuring that Governmentretains oversight over cost andrevenue realization.Government expenditure is recoverable from the projectas services are renderedtotheproject oncommercial terms.
• 577.The Cabinet Secretary further clarified that the FDPdoesnot create any explicit or implicit public debt obligation for the Government.The financing of exploration, development,and productionactivitiesremainssolelytheresponsibility of thecontractor under thePsCframework.There is therefore noimpact on Kenya's public debt arising from theimplementationoftheFDP.

578. TheestimatedcostofGovernmentfundedenablersisastabulatedbelow:

| | Cost | Cost | | |-----------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-----------------------------------------------------------------| | ITEM | USD (million) | KES (million) | Status | | 1.Land | 15.4 | 2,000 | | | 2.Power | 100.8 | 13,100 | Existing plans | | 3.Water | 76.9 | 10,000 | Design and approvalsongoing | | 4.Crudeoilreceipt, handlingandImport Infrastructure | 40.7 | 5,288 | Treasuryhas approvedtheconcept note,budgeting processis ongoing | | 5.Roads | 200 | 26,000 | Budgeted | | 6.Rail | KRCisundertakingfeasibility studiestodetermine an estimate. | KRCisundertakingfeasibility studiestodetermine an estimate. | KRCisundertakingfeasibility studiestodetermine an estimate. | | Sub-Total | 433.4 | 56,388 | |

• 579.Oncostrecoveryframework,theCabinetSecretaryinformedtheCommitteethatKenya operatesunderaPsCregimethatperimitscostrecoveryofpetroleumcostsandexpenses. Explorationand Developmentoperationsarehigh-riskandcapital-intensive.The Contractorbears all the risks and costsassociatedwith the operations;therefore,classifying costsasrecoverableenablestheContractortorecoupitsinvestment.
• 580.The cost recoveryframeworkis supported byclause27ofthePSCsforBlocksT6and T7.
• 581.Theproposed ceilingwill improve theviabilityof theprojectand therefore this investment.The duration of the cost recovery depends on the actual production.The Government begins receiving revenues from the first oil,with revenues increasing progressivelyas the cumulativerecoverable costs decline.Robustsafeguards arein place toprevent erosionofrevenue,including approval of annualworkprogramsandbudgets, monitoringofpetroleum operations and auditrecoverablecosts.

582. Ontheimpactofoilrevenuesonthecountry'sfiscalframeworkandannualgross financing needs as well as key macro variables,the Cabinet Secretary informed the Committee thatTheProject is expected toincurUSD8.2billion inoperatingexpenses,of whichUSD7.6billion(93%)willbespentandUSD5.7billionincapitalexpenditure,of whichUSD 1.9billion(34%)will belocally spent.It isexpected togenerate over3,000 direct,indirect,and induced jobs,contributing to PAYE and social security revenues. Communities along theproject corridor will benefit from improved marketaccess, infrastructure,andlocalbusinessgrowth.

• 583.Revenueprojectionsremain sensitive to globaloilpricevolatilityandproduction performance.Mitigation measuresinclude conservativeprice assumptionsinplanning and continuousmonitoringofmarketconditions.
• 584.OilrevenuesaccruingtotheGovernmentunder thePSCswillbetreatedasnon-tax revenueandpaidintoadedicatedpetroleumfundinlinewithSection57(2)ofthe PetroleumAct.Cap308andmanagedin accordancewithPublicFinanceManagementAct, 2012andanyotherrelevantlaw.

5.2.13MinistryofWater,SanitationandIrrigation

OnMonday,16thFebruary2026,theCabinetSecretaryfortheMinistryofWater,Sanitation andIrrigation,Eng.EricMurithi Mugaaaccompanied by the Principal Secretary State DepartmentforIrrigation,Mr.EphantusKimotho,CBSandothertechnicalofficersfromthe Ministry,appearedbeforetheJointCommitteeandmadethefollowingsubmissions:

• 585.TheCabinetSecretarysubmitted that their conceptis strategicallydividedinto three keycomponentstobalanceindustrialrequirementswithcommunityneeds.
• 586.TheCabinetSecretaryindicated that the totalbudgetisKShs40,308,415,619.97for watertransmissionandirrigationprojectdesignedtosupplyLokicharoilfields,Lodwar town,anddownstreamirrigationschemes.
• 587.The project combines large-scale intake,transmission,treatment,and irrigation infrastructurewithconflictresolutionandenvironmentalsafeguards.

5.2.14SubmissionsbytheEnergy andPetroleumRegulatoryAuthority

TheEnergyandPetroleumRegulatory Authority provideda written submission to the Committee asfollows:

• 588.On theregulatoryreview and approval processEPRA undertookinrespect ofthe sale ofTullowOverseasHoldingsB.V.byTullowPLC toAuronEnergyE&P Limited,an affiliateof GulfEnergy,fora minimum consideration ofUSD120million,theAuthority informed theCommittee that,Pursuant to Clause35of theProductionSharingContracts rights andobligations toanaffiliateunderthecontract,afternoticetotheMinister.
• 589.Section 12 of the Petroleum Act (Cap.308)establishes the National Upstream PetroleumAdvisory Committee(NUPAC)inwhich theDirector-General ofEPRA shall be the secretary.The NUPAC generally advises the Cabinet Secretary on all matters regardingupstreampetroleumoperations.
• 590.Thetransferofinterestwas deliberatedupon byNUPACandrecommended tothe Cabinet Secretary subject to all otherregulatory approvals.The consideration of USD.120 Millionwaspartofthecommercial transactionbetween thepartiesand isnotcost recoverable.
• 591.Regarding the deferred royalty arrangement (UsD 0.5per barrel multiplied by 80%of total production,payable quarterly to theSeller),EPRA's legal andpolicy position is as follows:
• i. The arrangement is aprivate andcommercial contractbetweenbuyer andseller and theroyalty considerationshall beborne out of theseller'sprofit share.
• ili. Under the respective PsCs,the royalty payments between the buyer and seller isnotallowableforcostrecovery.
• ii. The arrangement does not amend the Government share of profit oil payable to theGovernmentunder therespectivePsCs.
• 592.On the deferredroyalty arrangement,it wasnoted that deferredroyalty arrangement does not create legal interest in the respective PSCs.Further,it does not alter the computation of Government share,which remains payable as defined in the respective PSCs. Accordingiy, the deferred royalty payment is not classified as an approved recoverabie cost under the respective PSCs, it therefore does not increase cost oil and therefore cannot affect profit oil sharing.
• 593.EPRA,in coordinationwith theMinistry responsible for petroleum,has ensured the followingsafeguards:
• ii. The advancementof the draftPetroleum (Upstream Petroleum CostManagement) Regulations,2025 by EPRA,which providesa robust cost audit framework and detailed costreporting guidelines.The draft regulationshave been subjected to public participationandareawaitingsubmissiontotheCabinetSecretaryforapproval.
• i. Pursuant toSection 10(h)oftheEnergy Act(Cap.314),and30(3) and30(4)ofthe PetroleumAct(Cap.308),EPRAisobligated toassess andrecommend totheCabinet Secretary,beforeapproval oftheFieldDevelopmentPlans,productionprofiles and costrecoverysubmissionstoensurethatprivate commercialarrangementsdonot prejudicetheRepublic'sfiscal interests.
• ili. Oversight byEPRAofproductionmeasurement andrevenuereporting toprevent distortionofcashflowallocation.Overand above,EPRA hasafunctionalregional office atLodwarstaffedwith therelevanttechnicalexpertise thatwill beathand duringtheday-to-dayoperations toensureproperproduction assessments.

• iv. EPRA'sring-fencingofpetroleum costsin accordance with therespectivePSCs underits accountingprocedures.
• V. Prior approvalrequirementofworkprogrammesandbudgetsby the Cabinet SecretaryasoutlinedintherespectivePsCs.
• vi. Preservationofindependent Governmentsharecalculationmethodology:EPRAhas developed an economicmodel thatis used toassess the actual revenues andcosts.

594. On Past Contingent Liabilities,there are historical costs amounting to UsD 2.176 billion,which are classified as exploration and appraisal costs incurred in theconduct of petroleum operationsfrom theinceptionofthePSCstodate. 5. 595.Thesecostshavebeenincorporated into theFieldDevelopmentPlan.Under thenew ownership structure,theincoming Contractor assumes all rights and liabilities attached to therespective PSCs.The transaction between Gulf Energy E&PB.V and Tullow was conditional,uponanocost back-in rightof 30%participationinpotentialfuture developmentphases andretainedroyaltypayments. 6. 596.ThelegalbasisemanatesfromtherespectivePsCswhichprovidethatsuchexploration costsareeligibleforrecoverysubjecttoauditandregulatoryreview,andprovidedthey wereincurredpursuantto an approvedWorkProgrammeandBudgetandinaccordance with the costrecoveryprovisionsof thePSCs. 7. 597.Itwasnoted thatEPRA carried the costaudit.Thecost audits aswell as theexpenditure incurredis asfollows: 8. a)ContractNo.KE/MOE/79858/CS/QCBSdated27thMay2018undertakenby theJointVenture betweenSwaleHousePartnersInc.,Rosa,Correia & Associados,SROC,S.A.RadonLawOfficesandRES4DEVConsultingInc.

Theobjective of the assignmentwas to conductaudit ofpetroleum costsin blocks 10BBand13Tfrom2010to2016(bothyears inclusive)toevaluate whetherexpenditurecompliedwiththecontractualobligationsandfurther whethertheclaimedcostswereentitledtocostrecovery.TheContractsumfor consultancywasUSD662,102.

• b)ContractNo.4300005703dated5thApril2019undertakenbyRCAAuditores, Assessores Consultores.

Theobjectiveof the assignmentwas toconductanindependentaudit of petroleumcostsforblocks10BBand13Tbetween2017and2018toevaluate whetherexpenditurecompliedwith thecontractualobligationsandfurther whethertheclaimedcostswereentitledtocostrecovery.TheContractsumfor the consultancywasUSD206,885.

• ContractNo.MOPM/SDP/RFP/15/2019-2020dated30thNovember2020 undertakenbyRCAAuditores,AssessoresConsultores.

Theobjectiveoftheassignmentwasasfollows:

• ToconductanauditofEarlyOilexpenditures,EarlyOilpetroleum produced,and therelatedrevenuefrom thedatetheEOPSAgreement was entered into ie.14hMarch 2017 to31sDecember2019(Phase 1) andfrom1"January2020to31sDecember2020forthe(Phase2).

• ii. Toconfirm thevalidityof theexpenditures andthecompletenessof therevenueandproductionbasedonthetermsofEOPSAgreement and therespectivePSCsforBlocks10BBand13T.
• iv. The Contract sumwasKES.55million.
• ili. TocarryoutanauditofpetroleumcostsinBlock10BBand13Tfrom 2019 to2020in accordancewiththerespectivePSCstoevaluate whether expenditurecompliedwith thecontractual obligations andif the claimedcosts areentitledforcostrecovery.

4. 598.On EPRA undertaking or commissioning,or relying upon any independent audit,to validatethequantum andnatureoftheseliabilities,Thehistorical explorationandappraisal costsinquestionwereauditedbyan independentAuditfirm,Rosa,Correia andAssociados (RCA) in accordancewith theprovisions of therespectivePSCs,applicablelawand audit standards.The audit process addressed the quantum andnature ofthecontractor'sreported expendituresfortheperiod2010to2020.Underthenewownershipstructure,theincoming Contractor assumes all rights andliabilities attached to therespectivePSCs.Theliabilities constitute auditedcostswhicharerecoverable. 5. 599.The total cost incurred in the EOPS audit processwasKES.55Million remitted toRCA Auditores,Assessores Consultores. 6. 600.Inline with Section 15(1)of the Petroleum Act(Cap.308),thereconstitution and reconfiguration of theKenya petroleum explorationblockswas presented and adopted by theNational UpstreamPetroleumAdvisory Committee(NUPAC)whereEPRA servesas the secretariat. 7. 601.There-designation of Blocks10BB and 13TasBlocksT6andT7is an administrative renaming exerciseaimedwhoseobjective is toalignwithbestpracticeinternational standardswhichhasnoimplicationonthesize andcoordinatesoftheBlocks. 602. TherenamingofBlocks10BBand13TtoT6andT7respectively,was administrative toalignwith internationalbest practicewhere thenomenclatureof Blocknamingoriginates from theBasin. 603. On whether thereview alter the size or acrcage,the coordinates,sizes and shapes and acreage for Block 10BB(now T6)and 13T (now T7) with the PSC's were not altered. The process was undertakenprocedurallyin coliaborationwith theDepartmentofSurveys (SurveyofKenya). 10. 604.Technicalverificationwas done by theSurveyof Kenya to confirm andverify all the coordinates and block boundaries,including theKenya'sInternational Boundary before publicationandgazettement.Further,thePetroleumexplorationblockmapreconstitution didnot affect thecontractual andfiscal obligationofBlocksT6andT7PSC's. 605. On Recoverable Cost Reporting Framework and Transparency,the draft Petroleum (Upstream Cost Management) Regulations 2025provide for costreportingguidelines which include templates aligned to therespectivePSCs and thePetroleumAct(Cap.308). The draft regulations have undergone stakeholder consultation and are currently in the processof beingsubmitted to theCabinetSecretaryfor approval. 12. 606.Onwhether the frameworkclearly distinguishbetween capital expenditure(CAPEX), operating expenditure (OPEX),financing costs,decommissioning provisions,and any affiliate orrelated-party transactions,itwasnoted that,Clause 27of therespectivePsCs

clearlydistinguishesbetweencapitalexpenditureandotherpetroleumcostsforpurposes ofcost recovery.The draftPetroleum(Upstream CostManagement)Regulations2025 provideaclearframeworkforpetroleumcostsreporting,costcategorization,andfinancial disclosureobligationsoftheContractor.

• 607.Under the respectivePsCs,inparticularunderClause 2.2on theAccountingProcedure, labourcostsaretreatedaseligibleforrecoveryaslongastheyrelatedirectlytopetroleum operations.Only theproportion of time spent on those operationsischarged,provided the amounts arereasonable,properly supported,auditable,and within the approvedwork programme andbudget.
• 608.Pursuant toClause30(1)oftherespectivePSCs,theContractorisrequired to submit costrecoverystatementsonaquarterlybasisandnomorethanthree(3)monthsafter the endofeachcalendaryear.PursuanttoClause30(3)oftherespectivePsCs,theGovernment mayaudit thebooksandaccountswithintwo(2)calendaryearsoftheperiodwhich they relateandshall complete theauditwithinone(l)year.
• 609.ItisworthytonotethattheFDPwassubmittedby theContractor toEPRAon10th December2021andtherehasbeenmutualagreementontheextensionofthereviewperiod inordertoensurethattheFDPistechnicallyandcommerciallyviableasrequiredunder thelaw.
• 610.Under the respectivePsCs,costrecovery statements submitted by the Contractor constitutepartoftherecordssubjecttoaudit.TheauditentailsreviewoftheapprovedWork Programme and Budget,underlying expenditure records,contracts and procurement documentation,paymentvouchers,and the quarterly costrecovery statements.The audit processserves as theformal mechanism throughwhich the Governmentverifies thatcosts claimedareinaccordancewiththePetroleumAgreement,theapprovedWorkProgramme andBudget,andapplicablelaw.
• 611.The audit frequency is as outlinedin4(d)above andnotably,EPRAis currentlyin the process ofprocuringanindependent consultant to undertake the next cost recoveryaudit to confirm thecategorization and accuracyofthecostspresented.
• 612.Section119of thePetroleum Act(Cap.308)mandatestheCabinet Secretary to establish a reporting,transparency and accountability framework for theupstream petroleumsector,includingpublicationofpetroleumagreements,records,annual accounts andreportsofrevenues,fees,taxes,royaltiesand othercharges,as wellas,anyother relevantdata andinformationthatsupportspaymentsmadebythecontractor andpayments receivedby thenational government,countygovernmentsandlocal communities.
• 613.Theprovisionfurtherprovidesfor transparency andaccountabilityframeworkfor the upstreampetroleum sectorby ensuringit shallbe disaggregatedintoeachpetroleum agreement,non-exclusive permit,drilling permit,production permit,and plug and abandonmentpermits.

614. regulatoryreview,and auditprocessesconductedin accordancewith therespectivePSCs and applicable law.Additionally,the draft Petroleum (Upstream Cost Management) Regulations2025provideforanelaboratecostauditframework. 615. Under Clause 41of therespectivePSCs,anyquestion or dispute arisingout of or in connectionwithaPsCistobesettledamicablyin thefirstinstance.Wheretheparties

(Government and Contractor)are unable toreach a settlement within thirty(30) days,or suchextendedperiod asmaybeagreed,the disputeisreferred to arbitrationin accordance withtheUNCITRALArbitrationRules.

• 616.Accordingly,where EPRA,on behalf of the Government,disallows certain costs and the Contractor objects,the matter is first addressed through amicable settlement.Ifit remains unresolved,it may be referred to arbitration under Clause 41.Pending determiination of the dispute,thecosts inquestion are treated asdisputed amounts and are notrecoverableuntilthematter isresolvedinaccordancewith thedisputeresolution provisionsoftherespectivePsCs.
• 617.Additionally,the draft Petroleum (Upstream Cost Management) Regulations 2025 providesfordiscrepancies anddisputeresolutionunderRegulations49 and51respectively.

5.3SubmissionsofMemorandabyOtherStakeholdersandMembersofthePublic Followingthecall formemorandafrom thepublicthroughtheplacementofadvertisementsin theprintmedia,theJointCommitteereceivedandconsideredmemorandafromthirty-four(34) stakeholders and membersof the public by Monday22ndDecember 2025and Friday,16h January2026assummarizedbelow(MatrixattachiedinAnnex5):

5.3.1KenyaPrivateSectorAlliance

TheKenya Private Sector Alliance(KEPSA) submittedwrittenmemoranda in support of the proposed Field Development Plan (FDP),citing the following key justifications and recommendations:

• 618.EconomicStimulus and MacroeconomicImpact:KEPSA noted that the projected capitalinvestmentofapproximatelyUSD6.1billionrepresentsoneofthelargestprivatesectorinflows inKenya'shistory.Theinvestment isexpected to stimulate activity across the construction,logistics,and services sectors.In addition,crude oil exports are anticipated tostrengthen theKenyaShillingagainstmajorcurrencies,generatingeconomywidepositive effects.

619. EnergySecurityandTradeBaiance:Achievingaproductionplateauof 50,000-100,000 barrcls per day will significantly improve Kenya's trade balance,reduce dependence on

• 620.Domestic Operator Confidence:The transition to a local operator,Gulf Energy E&P B.V,was cited as a strong signal of the growingmaturity and capability of theKenyan private sectortomanagecomplex,capital-intensive upstreamextractiveprojects.
• 621.FoundationforUpstreamIndustryDevelopment:KEPSAobserved thattheprojectwill catalyze the developmentofKenya'supstream petroleum industry,thereby lowering barriers tocommercial exploitation of other basins such asAnza,Mandera,andLamu.

KeyRecommendationstoParliament

622. While supporting the FDP,KEPSA proposed several "value-add"measures for considerationbyParliament: 2. StrengtheningLocal ContentandSMEParticipation:KEPSArecommended that the FDPgo beyondminimum local contentrequirements byintroducing aLocal ContentPerformanceBond anda time-boundroadmapfortransitioning technical andmanagerialrolesfromexpatriatestoKenyannationals.Theyfurtherproposed

• theestablishmentofaPetroleumEnterpriseFund,financed througha small percentage ofcontractorcostrecovery,toprovidelow-interest credittoKenyan SMEsparticipatingintheprojectsupplychain.
• ii. Infrastructure and LogisticsRiskManagement:Given thatSouthLokichar crude iswaxyandsolidifiesbelow40°C,KEPSArecommendedthattheFDPexplicitly specify specialized tankerandrailwagondesigns,includinginternal heatingcoils oradvanced insulation.Theyfurtherproposed thatintermodal transferpoints(e.g. Eldoret and Changamwe)be designated as Special EconomicZones(SEZs)to attractprivateinvestmentinheating andstorageinfrastructure.
• iii. Tomitigatetransportrisks,KEPSArecommendedprioritisationofroadsleading directlytooilfields,particularlytheKitale-LokicharRoad,and theintroduction ofamandatoryconvoyand GPStrackingsystemmonitoredby theNational TransportandSafetyAuthority(NTSA).
• iv. KEPSAfurtheremphasizedthatroadandrailtransportshouldbeleveragedfor localeconomicbenefitbyreserving100%oftruckingcontractsforKenyanownedlogisticsfirms,sourcingdieselfromlocalretail stations,andoutsourcing railwagonmaintenanceandlast-milelogisticstolocalengineeringfirms.
• V. Giventheelevatedspill riskassociatedwithsurfacetransport,KEPSAproposed mandatory Tier-1 Emergency Response Plans for all transit countiesand comprehensiveenvironmentalpollutioninsurancetocoverthird-partydamages.
• vi. Water ResourceManagement:KEPSA raised concernsregarding theproposed 80kmwaterpipelinefromTurkwelReservoir,highlightingcompetingdemands for hydropower,irrigation,and domestic use,as well as thehigh-waterintensity ofoil production.Theyrecommended thatthepipelinebedesigned asa common carrier,withcommunitywateroff-takepoints alongtheroute,and thattheFDP include an Environmental Flow Guarantee,suspending abstraction during criticallylowreservoirlevels.
• vii. KEPSAfurtherproposedaZero-DischargePolicyforproducedwater,requiring treatmentandreinjectionratherthanstorageinopenevaporationpits,toprevent groundwatercontaminationandriskstopastorallivelihoods.
• viii. s energy-intensive andrecommendedaHybridCaptivePowerModelintegrating diesel orgaswithrenewableenergy,particularlywind and solar,givenTurkanas highrenewableresourcepotential.Theyfurtherproposedutilizationofassociated gasforon-sitepowergeneration,installationofstep-down transformerstoenable localelectrification,andeventualnet-meteringtoallowexportofsurpluspower to thenational grid.
• ix. Fiscal Transparency and Decommissioning:KEPSA recommended the establishmentofareal-timeauditframework,allowingtheKenyaRevenue AuthorityandtheAuditor-Generalconcurrentaccesstoprojectexpendituredata tominimize cost-padding risks.They also emphasized theneed for clearly definedescrowarrangements sfordecommissioningand environmental restoration,ensuringthatliabilitiesdonotfallonthetaxpayer.

623. CommunityEngagementandBenefitSharing:KEPSAproposedring-fencingthe15% countyand5%communityshareofgovernmentroyaltiesintoadedicateddevelopment fund to delivervisible benefits in health,water,and education infrastructure,thereby strengthening theproject'ssocial license tooperate.

5.3.2LokicharBusiness CommunityAssociation

Mr.Gabriel Emuria Loyomo,the Chairperson,andMr.Elijah Epur,the Secretary,on behalf oftheLokicharBusinessCommunityAssociation,submittedawrittenmemorandainsupport of the proposedFieldDevelopment Plan(FDP) and theProduction Sharing Contracts (PSCs) outliningthefollowingviewsandsubmissions:

• 624.On Local Content and Employment:TheAssociation noted that ratification of the FDP and PSCs will generate employment opportunities in logistics,catering, environmental monitoring,technical services,and other related sectors,while also facilitating skills transfer,capacity building,andlong-term workforce development.

625. OnEnterpriseDevclopmentand SMEParticipation:ApprovaloftheFDPandPSCs legally enables local enterprisestoparticipate across thepetroleum value chain,inlinewith Articles174 and201oftheConstitution,whichpromote devolutionandequitable sharing ofnationalresources.TheAssociation observedthatcontractors areobligated toprocure goods and services locallywhere capacity exists,thereby stimulating thegrowthof small andmedium enterprises(SMEs)in transport,hospitality,supply,maintenance,and other ancillaryservices. 626. OnInfrastructureDevelopmentandSocial Investment:TheAssociationnoted that approvaloftheFDPandPSCswillensure lawful infrastructuredevelopmentandsocial investmentsinaccordancewithArticles60and69oftheConstitutionandthePetroleum Act,2019,whichrequiresustainablelanduse,environmentalprotection,andpromotionof communitywelfare.lmplementationof theFDPis expected tofacilitate coordinated development of roads,water systems,and community facilities,while Community Development Agreementsprovidea framework for structured social investment in education,health,water,andlivelihood enhancement.

• 627.OnRevenue Sharing,Fiscal Accountability and National Interest:The FDP and PSCs were cited as advancing equitablerevenue sharing and fiscal accountability in line withArticles201and174oftheConstitutionand thePublicFinanceManagementAct, 2012.TheAssociation indicated thatratification will ensure transparent collection and equitabledistribution ofpetroleumrevenuesamong theNational Government,County Governments,andhostcommunities,thereby supportingpovertyreduction,diversification oflivelihoods,and sustainable socio-economicdevelopment.
• 628.Recommendations to Parliament:The Lokichar Business Community Association recommended that Parliamentensure strict enforcement oflocalcontentprovisions, promotegenderandyouth inclusion,strengthenenvironmentalandsocialsafeguards,and Constitution.

5.3.3TheTurkanaProfessionalsAssociation(TPA)

Mr.JacksonNakusa,the Chairman,onbehalfoftheTurkanaProfessionalsAssociation(TPA), submitted amemorandum insupportofGulf EnergyE&PB.V.'sprogressinimplementingthe approvedFieldDevelopment Plan(FDP) and the ProductionSharingContracts(PSCs),raising thefollowingkeyconcerns andproposals:

• 629.TheAssociation noted that the Environmental and Social Impact Assessment(ESIA) process hasbeencompletedandapproved,and emphasizedthatstrongsafeguardsmust be maintainedtoprotectcommunitiesfrom hazardouspollution,contaminationofwater sources,and airpollution arisingfrom oil operations.

• 630.TheAssociationnoted thatfurtherclarityisrequiredfromboth theNationalAssembly and CountyAssemblieson theformulasgoverningrevenueutilization atvarious stages.It emphasized thatallgovernment entitlements,includingroyalties,corporate income tax, andprofitoil shares,mustbefullycompliedwith.
• 631.TheAssociationstronglyunderscoredtheimportanceoflocalcontentimplementation as a prerequisitefor successful oil production.It called formandatory trainingprogrammes tobuild thecapacity oflocalprofessionalsandcommunitymembers toparticipate meaningfullyinthepetroleumindustry.TPAadvocatedforfulllocalizationoflow-cadre andsemi-skilledpositions,andaminimumof70percentlocalizationforprofessionalroles. Itfurther emphasized thatprocurementofgoodsand servicesshouldprioritizelocal suppliers and contractors in order to enhance livelihoods,build technical capacity,and createsustainableeconomicopportunitiesforKenyancitizens.
• 632.TPAhighlighted thestrategicimportanceoftheSouthLokicharoilprojectto the national economy,noting that oil productionhas thepotential to enhance Kenya's Gross DomesticProduct,increase foreign exchange earnings,and contribute to macroeconomic stability.Theprojectwas alsoidentified as akeycontributor tonational energy security. At the countylevel,theAssociationobserved thatTurkana Countystandstobenefit significantly throughoil-related infrastructure development andassociatedeconomic activities.
• 633.The Association identified several risks and challenges that require careful management.These include exposure to globaloilpricevolatility,which could affect projecteconomics,theneedfor sustained investment inpositive communityrelations and transparentbenefit-sharing arrangements,and theinherent environmental risks associated withoilproduction.
• 634.TPA recommended that GulfEnergy,the GovernmentofKenya,and otherrelevant stakeholdersstrengthen community engagement andbenefit-sharingframeworks through regular consultation forumsdesignedtoinform,update,andadvisehostcommunities.It furtherrecommendedtheestablishmentofacounty-levelwealthorstabilizationfundto support sustainable revenue management for present and future generations.The Association also urged the expediteddevelopment of pipelineandexportinfrastructure in ordertoreduceheavyvehiculartrafficassociatedwithcrudeoil truckingtotheport.
• 635.Finally,TPA called for strengthened environmental monitoring and compliance mechanisms,including routine inspections,to effectively manage risks related to oil pollution andwater contamination.It emphasized the need to protect community heritage, including historical and cultural sites,indigenous trees,and legitimate land-use patterns, throughout thelifecycleoftheproject.

5.3.4 TheSocialPerformanceProfessionalsAlliance(SPPA)

Mr.JosephLoibachEtaan onbehalfoftheSocial PerformanceProfessionalsAlliance(SPPA), amultidisciplinaryprofessionalbody comprisingexpertsin socialperformance,community development,stakeholder engagement,resettlement planning,environmental governance, peacebuilding,livelihoods,andhumanrightswithintheextractives,energy,andinfrastructure sectors,submittedamemorandumonthefollowing:

• 636.SPPAobservedthatwhileFieldDevelopmentPlans arecentraltechnicalandeconomic instrumentsguidingproject development,production timelines,andinvestment decisions, theyhave traditionallyprioritizedengineering,financial,andproductionconsiderations.In

practice,socialperformance aspects,such as communityimpactsandbenefits,land access and resettlement,local content and employment,conflict sensitivity,grievance management,and long-term socio-economic transition,have often been treated in a fragimented or peripheral manner.According to SPPA,the limitedintegration of social performance hascontributedtoproject delays,community disputes,litigation,anderosion oftrust among communities,operators,and the government,particularly in counties hosting extractive activities,such asTurkana.

• 637.The Alliance further noted that current FDP review processes tend to focus predominantly on technical feasibility,with social issues addressed as annexesrather than as coreproject risksandvalue drivers.Itexpressed concern thataffected communities are rarelyinvolved meaningfullyinthe formulation of FDPs,despite constitutional requirementsonpublicparticipation.SPPAalsohighlightedtheweakalignmentofmany FDPswith key constitutional provisions.In addition,unclear commitments on benefit sharing,employment,procurement,skills transfer,and community development were identified asa sourceofunrealistic expectations and conflict.TheAlliancenoted thatsocial commitmentscontainedinFDPsareoftennon-binding,withlimitedmonitoring,reporting andenforcementmechanisms.
• 638.SPPA recommended thatParliament mandate the inclusionofadedicated,stand-alone SocialPerformance Chapterin all FieldDevelopmentPlans.This chapter,it isproposed, should comprehensively address stakeholder mapping and engagement strategies,land access,compensation and resettlement frameworks,livelihood restoration and enhancementplans,inclusionofwomen,youth,andvuinerablegroups,conflictsensitivity and peacebuildingmeasures,security and human rights risk management,and accessible grievanceredressmechanisms.
• 639.The Alliance further recommended the strengthening of public participation requirements by ensuring early-stage community engagement prior to FDP approval, disclosure of simplifiedFDP summaries in local languages,and structuredparticipation of countygovernments and local institutions.Italso urgedParliament torequire demonstrable alignmentofFDPswith County IntegratedDevelopmentPlans,county spatial plans,and local peace andsecurityframeworks.
• 640.To cnhance accountability, SPpA proposed the institutionalization of independent social performance oversight,including the use of accreditedprofessional bodies to advise regulators during theFDPapproval process.It furtherrecommended thatsocial obligations containedinFDPsbemadelegallyenforceable byensuringthatthey areclearlycosted, time-bound,andsubject to periodic reporting toParliament and county governments.The Alliance alsoemphasized theneedforstrengthenedlocal content andworkforce transition planning,including progressivelocalization targets,skills development and certification pathways,andpost-projectsocio-economictransitionplans.
• 641.In its submission,SPPA underscored the criticalrole of the National Assembly in exercisingenhancedoversightoverFDPapprovals,reviewingexistingpetroleum,mining and energy legislation to embed social performance standards,ensuring effective intergovernmentalcoordinationbetwcennational andcounty governments,andprotecting communityrightswhilesafeguardingnational economicinterests.
• 642.In conclusion,the Social Performance Professionals'Alliance asserted thatKenya's extractive andenergyresources can onlydeliver sharedprosperityif FieldDevelopment Plans aresocially sound,inclusive,and accountable.Itemphasized thatintegratingrobust social performance standardsintoFDPsshouldbeviewednot asaregulatoryburden,but

asariskmitigation andvalue creationstrategythatsupportsprojectsustainability,social stability,andinvestorconfidence.SPPA expresseditsreadinessto support theNational Assembly through technical advisoryservices,professional accreditation,and independent reviewmechanismsaimed at strengtheninggovernance inthe extractive andenergysectors forthebenefitofallKenyans.

5.3.5 Turkana Community Justice Centre (TCJC) and Nakukulas EconomicDevelopment Organization (NEDO)

The Turkana Community Justice Centre (TCJC) and Nakukulas Economic Development Organization(NEDO)submittedamemorandumraisingthefollowingconcernsandproposals:

• 643.ClimateJustice andVulnerability Context:The organizationsnoted thatwhileProject OilKenyapromises national economicbenefits,it will contribute to greenhouse gas emissionsthatintensifytheclimatecrisis.Theyemphasized thatpastoralistcommunities in Turkana,already affected byprolonged droughts andrising temperatures,bear the greatestburdenofclimateimpacts,despitecontributingleasttoglobal emissions.
• 644.DemandforaClimateResilienceandAccountabilityFramework:TCJCandNEDO assertedthatratificationoftheFDPshouldbeconditionalupontheestablishmentofa Climate Resilience and Adaptation Framework,going beyond conventional Corporate Social Responsibility(CSR).
• 645.Prayers andRecommendationstoParliament:TheorganizationspetitionedParliament to:
• i. Mandate theestablishmentofa Community ClimateResilienceFund(CCRF)as anon-negotiableconditionforFDPratification;
• ii. Require thatall carbonoffsetting,environmentalmitigation,andlandrestoration measuresbelocalisedwithinProjectAffectedAreas;
• ili. Ensure inclusion of a legally binding "Climate Safety Net"provision guaranteeingemergencyfodder support,livestockinsurance,and waterrelief duringclimate-inducedorproject-related shocks;
• iv. Require a comprehensive,full-lifecycle Climate Impact Assessment (CiA) coveringemissionsfrom extractiontodecommissioningpriortoratification;and
• V. RejecttheFDPentirelyunlessitincludesaClimateAccountabilitySchedule, detailingapplication of the Polluter Pays Principle,ecosystemrestoration measures,anddeploymentofbestavailabletechnologiestominimiseclimate harm.
• 646.TCJCandNEDO concludedthatdevelopmentmustnotcompromise the survival, dignity,andlivelihoodsofTurkana's pastoralist communities.They emphasized that genuine economicgrowth shouldbemeasured by thesafety,health,andresilience ofhost communities,ratherthanthevolumeofoilextracted,andcalledonParliamenttoanchor petroleum development firmly within principlesofclimatejustice,accountability,and communityresilience.

5.3.6 Nakukulas Community Land Management Committee (CLMC) andKapeseCommunityLandManagementCommittee

Mr.GeoffreyLongolekol andMr.EnockEsikiria,the Chairpersons ofNakukulas andKapese Community Land Management Committee(CLMC)representing thecollective voice of the two communities,submitted writtenmemoranda on theproposed Field Development Plan (FDP)and the applicable Production Sharing Contracts(PSCs),raising the following key concerns andproposals:

• 647.Environmental Protection and Ecosystem Safeguards:The Committees expressed concern that theanticipatedprojectimpactsposeasignificant threat to thefragileTurkana ecosystem andthecommunity'spastoralistwayoflife.TheyemphasizedthattheFDPmust move beyond generic mitigation measures and address specific,documented risks, including:
• i. Potential contaminationofwatersources;
• ii. Land,habitat,and livelihood destruction;
• iii. Airqualitypollution andassociatedpublichealthrisks;and
• iv. Oilandhazardouswastes.

648. Just,Prompt,and Community-Centred Compensation:The CLMCs called for an explicitdeclarationintheFDPthat all compensationforlandacquisition,displacement, and loss of livelihoods shall be just,prompt,and based on cultural, communal,and economicvalue.They further proposed that compensation be paid directlyinto community bankaccountsunder CLMCoversight.

• 649.Environmental Liability,Restoration,and Decommissioning:The Committees recommended thattheFDPrequiretheContractor to establish anirrevocable,ring-fenced Environmental Restoration and Decommissioning Bond,managed by an independent fiduciary body with CLMCrepresentation.This bond should cover all costs of land and water remediation after project closure,including orphan wells,to protect communities fromfuturefinancialliabilities.

650. Inaddition,theyproposed theestablishmentofadedicatedEnvironmental Liabilityand EmergencyFund toenableimmediateclean-up andcompensation forunplanned spillsor contamination incidentswithout recourse to litigation.

• 651.Public Health Monitoring and Oversight: The CLMCs called for a commitment in theFDPto establish apermanent,independentlyfunded communityhealthmonitoring and public health surveillance system.This system should include baseline data collection, mandatory quarterly reporting,andprovisionoffree treatment for all project-related illnesses amongProjectAffected Communities(PACs).

652. Climate Change and Resilience:Recognizing that the project isfossil fuel-based,the Committees proposed the establishmentofa Climate Resilience Fund to support community adaptation toclimate-relatedpressures andvulnerabilities.

• 653.Local Employment, Skills Devclopment,and Capacity Building:The submission proposedamandatorylocal employment quota,requiringat least70percentofnon-skilled and semi-skilled labour to be sourced from Turkana County,particularly during construction andlong-termoperations.
• 654.Theyfurtherrecommendedtheestablishmentofadedicatedfundandcleartimelinefor comprehensive,accredited skills training and capacity-building programmes toenable local

• communitymemberstotransitionintoskilledandsupervisoryroleswithinthefirstfive yearsofoperation.
• 655.Local ProcurementandLocalContentImplementation:The CLMCs calledforfirm commitmentsin theFDPrequiringtheContractor toprioritizeprocurementofgoods and services from urkana-registered businesses,including catering,security,transport,and small-scale construction,supportedbyclear annual minimum spendtargets.
• 656.TheyfurtherrecommendedsubmissionofabindingLocalContentImplementation Planwithmeasurabletargetsforskills transfer,preferentialprocurement,andlocaljoband businessopportunities.
• 657.Land Acquisition and Free,Prior,and Informed Consent (FPIC):Finally,the Committees emphasized that all landacquisition and access arrangementsmustfully adhere to the principle of Free,Prior,and Informed Consent (FPiC).Compensation for land acquisitionordisplacementshouldbefair,timely,andcompliantwiththeCommunityLand Act,2016andtheIFCPerformanceStandards.

5.3.7 Turkana Civil Society Consortium(TCSC)

TheTurkanaCivil SocietyConsortium(TCSC)submittedwrittenmemoranda ontheproposed Field Development Plan (FDP) and the applicable Production Sharing Contracts (PSCs), raisingthefollowingkeyconcerns andproposals:

• 658.Historical Marginalisation and Trust Issues:TCSCnoted that since the early1900s, Turkana communities have perceived sustainedneglect by successive administrations, resultingin deep-seatedmistrusttowards externalactorsandinstitutions.Thishistorical context underscores the need for deliberate,inclusive,and trust-building engagement processes.
• 659.WasteManagement:TheEnvironmentalandSocial ImpactAssessment(ESIA)report proposed the establishment of a hazardous waste disposal site at Kang'ipetain,an area identified asacriticalgrazingzonewithperennialpastures,springs,anddry-seasonrefuges forpastoralists.TCsCexpressed strong concernover the potential adverseimpactson livelihoods,ecosystemservices,andpastoral mobility.
• 660.Oil Transportation and Infrastructure Development:The Consortium raised concernsaboutlandalienationforroaddevelopmentandassociatedenvironmentaland socialimpacts.They sought clarity on consultation processes for identifying transport corridors with minimal disruption to communities and ecosystems.TCSC further recommended theinclusionoflocal communitygroupsin CorporateSocial Responsibility (CSR)initiatives and proposed consideration of the Lokichar-Lokori-Kapedo-KinyangMarigat-Nakuru-Mombasaroute asa cost-effective anddevelopment-orientedoption.
• adequacyofinformationdisclosure,publicparticipation,andinclusivityduring theFEED decision-makingprocess,with callsforgreater transparencyandstakeholderengagement.
• 662.Community Land and Cultural Heritage:DuringPhase One of the oil project, approximately700squarekilometresofcommunitylandwereallocatedforoilandgas activities.These areas constitute vital grazing lands,drought reserves,and culturally significant sitesused for traditionalprayers(ekimwomor)and initiation ceremonies (asapan).Although thephysicalfootprint offacilitiesisestimated at approximately1,500

hectares,TCsCnoted that this remains substantial given the ecological sensitivity of grazingzonesandwaterpoints.

• 663.LegacyLiabilities:The Consortium sought clarification onwhether Gulf Energy will assumeresponsibilityforcommunity-relatedliabilities arisingfrom theoperationsof the previousoperator,TullowOil.
• 664.Data Gaps in Additional ExplorationPeriods:TCSC highlighted the absence or insufficiencyofpubliclyavailabledatarelatingto theadditional explorationperiod.
• 665.S Stakcholder Engagement on Land Acquisition:Concernswere raised regarding the non-involvementof the local community and the County Government ofTurkana in identifyingprojectareas,with engagement occurringonly at the stage ofcompulsoryland acquisition.TCsCcalledforearly,continuous engagement among contractors,the County Government,andlocal communitiesforfutureexplorationprospects.
• 666.Mapping and Identification of Oil Blocks:The Consortium noted inconsistencies in thenaming and identification of oil blocks,aswell as government-led mapping exercises undertaken without adequate involvement of the County Government and local communities.
• 667.Independent Monitoring and Oversight:TCSC proposed that the County Government and local communities be permitted toprocure an independentprivate consultant,funded throughprojectproceeds,tomonitor quantitiesofchemicals,materials, equipment,andpersonnelusedinoperations.
• 668.DryHole Risk and Mineral Disclosure:In cases of dry holes or non-commercial discoveries,contractors should disclose any other minerals encountered thatfall outside theircommercialinterest butmaybeofpotentialbenefittolocal communities,thereby enablingidentification ofalternativeinvestors.

669. PublicParticipation in New Operations:The Consortium emphasized theneed for structured and continuous publicparticipation processes for all newprojectphases and operations.

• 670.Water Resource Management: On water requirements,TCSC requested disclosure of the ten existing boreholes cited in project documents,noting the chronic water scarcity in the areaforbothhuman and livestockuse.Theyrecommended considerationofalternative sources such as Turkwel Gorge Dam,Lake Turkana,and proven aquifers,including Kaisamalit,Napuu,Tarach,and Lotikipi.

671. Decommissioning and ClosurePlanning:TCSCobserved that theFDPlacks aclear and detailed decommissioning plan,which is necessary to track implementation,ensure environmentalrestoration,andmanagelong-termliabilities. 672. Transparency in Oil Transportation Volumes:To enhance accountability,the Consortium proposed that local communityrepresentatives beallowed to observe and recordoil quantities during tanker loadingat Lokichar andoffloading at Changamwe.

• 673.Sequencing of Development and Legal Frameworks: Concerns were raised regarding the advancementof development plans prior to the full approval and operationalizationof thelegalandregulatoryframeworkgoverningoiloperations.

• 674.LandValuation and CompensationFramework:TCsCrecommendedareviewof theLandValueIndexActtoaddressissuesofzero-ratedlandandimprovecompensation mechanisms.They alsocalledfor a reviewoflandrequisition processesbased onpublic inputandcorrespondingamendmentstothePetroleumAct.
• 675.Environmental Monitoring and Spill Tracking:The FDPshould enable local communities,through civil society organizations engaged ingovernance,to monitorand reportoilandgasspillsduringdevelopmentandproductionphases.
• 676.Inclusive Monitoring of Production Sharing Contracts:Finally,TCSC emphasized theneedforaninclusivemonitoringframeworkthatallowslocalcommunitiestotrack implementation andcompliance withPsCs,therebymitigatingrisksofexploitation and collusionbetweengovernmententitiesandprojectproponents.

5.3.8 Secretariat,KenyaYouthParliament

TheSecretariatKenyaYouthParliament submittedviewshighlightingthecorridor-based socio-economicopportunitiesarisingfromtheproposedFieldDevelopmentPlan(FDP)and ProductionSharingContracts(PSCs),outliningthefollowingviews andsubmissions:

• 677.Corridor-BasedYouth Economic Opportunities:The submission identified specific opportunities alongtheproject.The organizationnoted that this corridor-based approach promotes balanced regional development, reduces spatial inequality,and enables meaningful participationofyouth acrossmultiplecountiesinthepetroleumvaluechain.
• 678.Environmental andSocialSafeguards:TheKenyaYouthParliamentobserved thatthe FDPincorporatesenvironmentalandsocialimpactmanagementmeasuresconsistentwith Kenyanlaw andinternational bestpractice.These safeguardswererecognizedasessential toensuring thatcurrentdevelopmentdoesnotcompromise theopportunitiesandwelfare offuturegenerations.SupportfortheFDPandPSCswasthereforelinkedtothepromotion ofresponsible resource development that balanceseconomic growth,environmental stewardship,and social inclusion.

679. Governance,Transparency,and Accountability:The submission noted that the Production Sharing Contracts provide a transparent framework for revenue sharing, government oversight,and reporting,thereby strengthening public accountability.The youth engagementingovernance,monitoring,and advocacyrelated tonaturalresource management.

5.3.9TurkanaSouthDriversand TransportAssociation

TheTurkanaSouth Driversand Transport Association,through theKenyaTruckDrivers following the submission ofits Field DevelopmentPlan(FDP)and Production Sharing Agreement(PSA),outliningthefollowingviewsandsubmissions:

• 680.Support for Gulf EnergyE&PB.V.:TheAssociation recognized Gulf EnergyB.V.as a credible andreliable energy companywitha proven trackrecord inKenya,particularly in the successful delivery of Government-to-Government(G-to-G)fuel supplies,which have contributed to national fuel security,supply reliability,and market stability.The submissionoftheFDPandPSAwasviewed asevidenceof GulfEnergy'scommitment to petroleumresources.

• 681.Role of Trucking in Petroleum Development:The Association emphasized thatroad transport remains indispensable toKenya's energy value chain,supporting all phases of petroleumdevelopment,including:
• i. Transportationof drilling equipment,pipes,fuel,and constructionmaterials;
• iii. Provisionof last-milelogisticswherepipeline andrail infrastructure islimitedor complementary.
• ii. Movement of crudeoil fromproductionfields toports andstoragefacilities;and

682. Beyond truck drivers,theAssociation highlighted the extensive economicecosystem supported by trucking activities,including mechanics,auto-electricians,welders,tyre repairers,spare-partsdealers,fuelstationattendants,carwashoperators,roadsidevendors, hospitality providers,security personnel,and fleet management professionals. This ecosystemsupports thousandsofKenyan households andpresentssignificantemployiment andenterpriseopportunitiesforyouth andwomen.

• 683.Socio-Economic Benefits along the Mombasa-Lokichar Corridor:The Association noted that transportationofprojectmaterialsfromthePortofMombasatoLokicharwill stimulate economicactivity across multiple counties,including Mombasa,Kwale,Taita Taveta,Nairobi,Machakos,Kitui,Isiolo,Samburu,Laikipia,Baringo,and Turkana. Anticipated benefits include increased demand for haulage services,growthofroadside suppliers andvendors,andskills transferthrough localemployment.

684. Withrespect tocrudeoil transportationfrom Lokichar toMombasa,theAssociation highlightedthepotentialforlong-termandpredictabletransport demand,resultinginstable employment for trained drivers and support crews,expansion of specialised haulage and safety services,sustained businessforvehicle servicing and consumables,improved road safetyandsecurityservices,andsteadyincomeflows supportinglocaleconomiesalongthe corridor.

• 685.National EconomicImpact:TheAssociation underscored the broaderrippleeffectsof truckingassociatedwith theFDPandPSA,includingjob creation across the transport and service economy,increased county revenues through permits and local procurement, strengtheningofKenya'slogisticscapacity,andinclusiveeconomicgrowththatintegrates remote and frontiercountiesinto thenationaleconomy.Theseoutcomeswerenoted toalign with Kenya's developmcnt priorities under Vision 2030 and the Bottom-Up Economic Transformation Agenda(BETA).

5.3.10ActionforJusticeandEquality

ActionforJustice andEquality(AJE),a Nairobi-based civil society organization committed to constitutionalism, social justice, equality,responsible natural resource governance,and sustainable development,submitted written memoranda welcoming and conditionally supporting theproposed Field DevelopmentPlan(FDP) andProduction Sharing Contracts (PSCs),outliningthefollowingviews andsubmissions:

• 686.Constitutional and Governance Context:AJE grounded its submission in Articles 10, 69,71,174,and201of theConstitutionofKenya(2010),noting that the submissionofthe FDPandPSCs toParliamentrepresents a criticalconstitutionalmilestone thatenhances transparency,democratic oversight,and public accountability in petroleum resource governance.The organization commended the GovernmentofKenya forcomplyingwith Article7l by subjectingpetroleum contractstoparliamentary approval andwelcomed Gulf Energy'sengagementwith thisconstitutionalprocess.

• 687.ConditionalSupportandHumanRightsPerspective:Approachingtheprojectfrom a civil society and human rights-centered perspective,AJE noted that petroleum development,ifresponsiblygoverned,cancontributetoreducinginequality,strengthening livelihoods,and advancing socio-economicrights.However,without robust safeguards, suchprojectsriskentrenchingmarginalization andrightsviolations.
• 688.CommunityRights,Benefit Sharing,andLivelihoods:AJEunderscored theimportance ofensuringthatpetroleumdevelopmentdeliverstangibleandequitablebenefitstohost communitiesinTurkanaCounty.TheorganizationwelcomedprovisionsinthePetroleum Actandrelatedframeworks.
• 689.Local Content,Inclusion,andEconomicOpportunities:AJEwelcomedcommitments within theFDP andPSCs onlocal content and capacitybuilding,noting their potential to catalyze:
• i. Employmentopportunitiesforlocalyouth andwomen;
• iii. Skills transfer and technical trainingforKenyanprofessionals;and
• ii. Growthoflocalenterprisesinlogistics,transport,catering,security,construction, andprofessional services;
• iv. BroadereconomiclinkageswithinTurkana Countyandnationally.
• 690.TheorganizationurgedParliament toensure strictadherencetolocal contentlaws and regulations,with economicparticipation thatisinclusive,transparent,andmeasurable
• 691.Environmental Protectionand Climate Considerations:AJE recognizedthe environmental sensitivityoftheSouthLokicharregionandwelcomedFDPcommitments onenvironmentalprotection,rehabilitation,and compliancewithnationalenvironmental laws.TheorganizationfurtherencouragedalignmentwithKenya'sclimatecommitments andajust andorderly energy transition,while acknowledging theroleofresponsibly managedpetroleumresourcesinfinancingdevelopmentandsupportingthe transition to renewableenergy.
• 692.IndependentHumanRightsOversight:AJEemphasized thatapproval of theFDPand PSCs should be accompanied by ongoing,independent human rights oversightbeyond thatGulfEnergyE&PB.V.establishanIndependentHumanRightsAdvisoryCommittee (IHRAC)foritsoperationsinBlocksT6andT7.
• 693.AJEnoted that such a mechanism,benchmarked on best-practicemodelsinKenya including the Kakuzi Plc Independent Human Rights Advisory Committee,would strengthen Gulf Energy's social license to operate andreducerisks of conflict,litigation, andreputationalharm.
• 694.Actionfor Justice and Equality:
• i. WelcomedandconditionallysupportedtheFDPandPSCsforBlocksT6andT7 inSouth Lokichar;
• ii. CommendedtheirsubmissiontoParliamentincompliancewithArticle71ofthe Constitution;
• iii. UrgedParliament to approve theFDPandPSCswhilereinforcingsafeguardson communityrights,environmentalprotection,genderequity,localcontent,and equitablebenefit-sharing;
• iv. PetitionedParliamenttorecommendtheestablishmentofanIndependentHuman RightsAdvisoryCommitteebyGulfEnergyE&PB.V.;and

• V. Affirmed itsreadinessto engage constructively with Parliament,government institutions,theproject proponent,and affected communities toadvance justice, equality,andsharedprosperity.

5.3.11ConcernforProgressInternational

• 695.The Concern for Progress International(CFPI),a Nairobi-based civil society and policy advocacy organization,submitted a memorandum supporting the proposed Field Development Plan (FDP) and Production Sharing Contracts(PSCs) for Blocks T6 and T7 in theSouth Lokichar Basin,Turkana County.CFPI described theproject asa strategic opportunity to advance Kenya's upstream petroleum sector,enhance national revenue, stimulateemployment,andpromoteregional development.

696. CFPIunderscorcd theimportance of strict compliance with thePetroleumAct,2019, andassociatedregulations.It urged the Committee toensure that fiscal transparency, environmental safeguards,communitybenefit-sharing,and intergovernmental coordinationwerefullyintegratedintotheFDPandPSCframework.

• 697.Acentral themeof CFPl's submissionwas thepromotion ofasharedprosperitymodel. The organization stressed that petroleum development should yield tangible socioeconomicbenefits for host communiticsin Turkana County.It recommended clearly structuredcommunity developmentprogrammes alignedwithcountypriorities,predictable benefit-sharing mechanisms,and safeguards for pastoral livelihoods,landrights,water access,and cultural heritage.
• 698.On local content,CFPI advocated for meaningful participation of Kenyan enterprises acrossthepetroleumvaluechain,targetedemployment andskillstransferopportunitiesfor youthandwomen,andcollaborationwithlocaltraininginstitutionstobuildlong-term national capacity.The organization characterized local content as both a statutory obligation and astrategicinvestment.

699. Environmental governance was identified as a critical safeguard.CFPIcalled for comprehensive and participatoryEnvironmental andSocial Impact Assessments(ESIAs), enforceable mitigation and monitoring frameworks,and the integration of climate resilience and water stewardship into project planning and operations, noting Turkana's ecologicalsensitivity. 700. CFPI further highlighted Parliament's oversight responsibility in safeguarding the publicinterest.It encouraged theCommittee toprovideclear guidanceon community benefit-sharing,local content implementation,and social nvestment obligations,while strengtheningcoordinationbetween nationalandcountygovernments.

• 701.Additionally,CFPI proposed strengthened compliance and accountabilitymechanisms, includingoversight structures aligned with constitutionalstandards,human rights principles,andprotectionsforvulnerablegroups.It advocatedforregularpublicreporting toenhancetransparencyandpublictrust.
• 702.In conclusion, CFPI supported ratification of the FDP and PSCs subject to full compliancewith constitutional,legal,andpolicyrequirements.The organizationreiterated that implementation should prioritize shared prosperity,environmental stewardship,and

5.3.12KenyaNational Chambersof Commerce andIndustry-Turkana Chapter

• 703.TheKenyaNational Chamberof CommerceandIndustry(KNCCI)TurkanaChapter submitted amemorandum toParliament supporting theratificationof theSouthLokichar FieldDevelopmentPlan(FDP)andtherevised ProductionSharingContracts(PSCs),while outliningkeyconditionsitdeemednecessarytoensurethatoildevelopmentdelivered meaningful andlastingbenefitstothehostcounty.
• 704.KNCCI Turkana acknowledged thenational importanceofachievingFirst Oilbut emphasized thatthelong-termsuccessoftheprojectdependedonwhetherit strengthened Turkana's economy,protected existing livelihoods,and ensured timely and fair benefit sharingwiththelocalpopulation.
• 705.Onfiscal terms andcostrecovery,the Chamberexpressedconcern overtheproposed 85%costrecovery ceiling.Whilerecognizingtheinvestor'sright torecover capital costs, itnoted thatmaintaining thislevelthroughout theprojectlifewouldlikelydelay the realizationofprofitoil,therebypostponing thestatutory5%communityshareand20% county share for many years.To address this,KNCCI proposed a"payback sunset clause" thatwouldallowthe85%ceilingonlyduringtheinitial threeyearsofcommercial production,afterwhichitwouldrevert to65%toacceleraterevenueflowstothecounty andhostcommunity.
• 706.On trade transparency and oversight,the Chamber affirmed that crude oil produced fromBlocksT6andT7constitutedaproductof Turkana County.Itproposed theuseofthe KNCCI CertificatesofOriginasa complementarytradedocumentation tool toenhance traceability,transparency,and confidence inreportedproduction volumes.This approach was intended to support accurate royalty calculations and strengthen trust among the operator,government,andthecommunity,withoutduplicatingexistingregulatorysystems.
• 707.Regardinglocal content,KNCCI stressed thatlocal participationwas a statutory obligationratherthanavoluntarygesture.The Chamberproposed the adoption ofa threetier local contentframework:reservingnon-technical services primarily for Turkanaowned firms,requiring structured local equity participation in moderately technical services,and embedding succession planningandskills transfer inhighly technicalroles. Thismodelwaspresentedasapracticalwaytopreventprocurementfrontingandensure genuinecapacitybuildingwithinthecounty.
• 708.On livelihoods and livestock protection,KNCCI emphasized that pastoralism remained the backbone of Turkana's economyand supported the majorityof the population.It argued thatoil developmentneeded to coexistwith,rather thanundermine, livestockproduction.TheChamberthereforecalledfordual-useinfrastructure,particularly theinclusion oflivestock wateringpoints along the Turkwel-Lokicharwater pipeline, mandatory local meat sourcing for oil camps,rangeland restoration measures,and the mappingofgrazingroutestominimizelong-terimdisruptionofpastoral systems.

709. Withrespecttorefugee-hostintegration,thesubmissionaligned theFDPwiththe Government ofKenya'sShirikaPlan.KNCCIviewed therefugeepopulationinTurkana Westasaneconomicassetrather than aburdenandrecommendedthatoil-related infrastructure and procurement frameworks supportintegrated trade corridors,shared markets,and joint host-refugee enterprises,positioning Turkana as aregional trade gateway.

• 710.On infrastructure legacy,the Chamber argued that oil-related investments should not operate as isolated industrial facilities.It proposed that power, water, roads, telecommunications,andlogisticsinfrastructure developedundertheFDPshouldserve as long-term enablers for the wider Turkana economy.Key recommendations included subsidized host-community energy tariffs,sharedwateraccess,acontractor-fundedroad maintenancefund,andimproved digital connectivitytosupport local businesses.
• 711.Regarding capacity and readiness,KNCCI rejected claims that Turkana lacked the business orworkforce capacity to support the oil project.The Chamber presented evidence of locally based firms,trained technicians,and certified professionals whowere already capable ofparticipating in the petroleum value chain.Itis committed to supporting implementation throughfirmvetting,facilitationofjointventures,andmaintenance ofa localskillsdatabase.
• 712.In conclusion,KNCCI Turkana supported the ratification of theFDP and PSCs on the understanding thattheywouldbetreatedasasharedeconomicblueprintratherthana purely technical extractionplan.The ChamberurgedParliament toconditionapprovalon fiscalfairncss,enforceablelocalcontentmeasures,transparent tradetraceabilityprotection ofpastoral livelihoods,andinclusiveregional development.The submission underscored thatoil development had thepotential totransformTurkana onlyif itwasmanagedina manner that respected local economies,built lasting capacity,and delivered tangible benefitsto the hostcommunityina timelyandequitableway.

5.3.13TheKraalEldersand CommunityLeadersofArooSub-County

Mr.Munyes Joseph,on behalf of Kraal Elders and Community Leaders,submitted a memorandum totheJoint Committeeandappreciated theopportunitytopresent theirviewson theSouth LokicharField DevelopmentPlan(FDP).He submitted asfollows:

• 713.On waste management, the community noted that the plan proposes 48wastewells, yet only fivehave been identified,and none have beennamed publicly.The remaining wellsareyettobe located.Thecommunitystrongly calledfor strictpublicparticipation in identifying these sites,citing the Lomokamar incident as a painful reminder of the consequencesofpoorconsultation and environmental oversight.
• 714.On social issucs, the submission highlighted gaps in how land, livelihoods, and community well-being are addressed.Compensation for grazing land,they argued, should be guided by a Community Grazing Agreement that reflects local realities,rather than relyingsolelyonnational templates.TheFDPwasalsofaultedforfailingtoclearlyoutline proactive community health,safety,and security programmes,especially measures to manage social pressures such astheinfluxof speculativemigrants intonearby towns and villages.
• 715.Regarding cultural heritage,the community expressed concern that theFDP doesnot define what constitutes cultural heritage,nor does it include the management plans for sacred sites that it claims exist.The elders insisted that theseplansmust be sharedopenly so thecommunitycan understandandinterrogatehowtheir heritagewill beprotected.

716. Onlocal content,thecommunitywelcomed the idea of the"Wheel ofOpportunity" butnoted thatitremainslargely theoretical.They calledforpracticalmeasuressuch as vocational training,apprenticeships,and deliberate skills development.They alsoraised concernsaboutweakenforcementoflocal contentpoliciesandtensionsbetweentraditional and modern governance systems, proposing that elders be formally recognized and consulted throughstructuresliketheCommunityLandManagementCommittees.

• 717.In terms of employmentandprocurement,the community proposed clear local participation thresholds:all unskilled and semi-skilled jobs shouldgo to locals,while at leasthalfofskilledpositionsshouldbefilledlocally.or nationally.Forprocurement, particularlytruckinginPhaseI,theyrecommendedincreasinglocalparticipationfrom33% to50%,distributedfairlyacrosssub-counties,toaddresshistoricalmarginalization.
• 718.Thesubmissionalsoraisedseriousconcerns aboutwateruse,noting thatgovernment plans aroundwater sourcingandallocationhavenotbeen adequately sharedor discussed, despitethesignificantimplicationsfortheprojectandthecommunity,especiallygiventhat muchofthelandinArooSub-Countyremainsunregistered.
• 719.On cost recovery and land impacts,the community emphasized that oil operations overlapwithareasofdeepcultural,spiritual,andlivelihoodsignificance.Sacredsites, archaeologicalremains,intangibleheritage,grazingroutes,and fishing areashavenotbeen unregisteredcommunityland.
• 720.The elders firmly stated thatunregisteredlandis stillprotectedunder the Constitution and the CommunityLand Act.ArooSub-County land is community land heldunder customary law,anditslackofregistration doesnotdiminish thecommunity's rightsorownership.
• 721.The community further demanded adherence to the mandatory benefit-sharing frameworkunder thePetroleumAct,2019,whichallocates5%ofrevenuestohost communities.They proposed that this benefit be delivered through cash payments, community trustfunds,livestock andlivelihoodprogrammes,ora combination of these, recognizingthereal disruptions caused bypipelines,roads,and oil infrastructure.
• 722.They also called for Community DevelopmentAgreements(CDAs)with alloil operators,clearly spelling out jobs,training,community projects,pastoral support, managementofcommunityfunds,andtransparentauditingmechanisms.
• 723.Inconclusion,thecommunityreaffirmed thattheysupportresponsibleoil development heritage.They urged the Ministry of Energyand allpartners to recognize affected community members,conduct transparent landinquiries,compensate notjustforlandbut alsoforlivelihoodsandculturalloss,andactivelysupportcommunitylandregistration.

5.3.14Mr.LokurukaJonahNamulen

Mr.Lokuruka Jonah Namulen submitted written memoranda on the proposed Field DevelopmentPlan(FDP)and theapplicableProductionSharingContracts(PSCs),raisingthe followingkeyconcernsandproposals:

• 724.AlignmentofFDPApprovalwithCountyDevelopmentFrameworks:Mr.Namulen proposedthatapprovaloftheFDPshouldbealignedwithexistingcountydevelopment and governance instruments,including:County Integrated Development Plans (CIDPs); CountySpatialPlans;andLocalpeace,security,andconflictresolutionframeworks.
• 725.IndependentSocial Performance Review:Parliament should support theestablishment or designation ofindependentsocial performance reviewers,drawn from accredited professional bodies,to advise regulators during theFDPapprovalprocess.In the caseof

Turkana County,heproposed theSocial PerformanceProfessionalsAssociation(SPPA)as asuitablebody.

• 726.Legally Enforceable Social Commitments:Socialobligations contained in FDPs should bemade legally enforceable.In particular,such commitments should be:clearly costed; time-bound;and subject toperiodicreporting toParliament and County Governments.

727. Strengthening Local Content and Workforce TransitionPlanning:FDPs should include clear provisions for strengthening local content and workforce transition planning, including:

• i. Progressivelocalization targets;
• iii. Post-projectsocio-economictransitionplans.
• ii. Skills development and certificationpathways;and
• 728.Roleof theNationalAssembly:Mr.Namulenfurther urged that theNational Assembly should:
• i. Exercise enhancedoversightoverthe approval andimplementationofFDPs;
• ii. Review existing petroleum,mining,and energy legislation to embed social performancestandards;
• iii. Ensure effective intergovernmental coordinationbetwcenthe National Governmentand CountyGovernments;and
• iv. Protect communityrightswhilesafeguardingnational economicinterests.

5.3.15Subimission byAkideProfessionals'Association

The Akide Professionals Association, representing the interests of the Turkana South communitysubmitteda formalmemorandum totheJointCommitteeregardingtheSouth Lokichar Field DevelopmentPlan(FDP).

• 729.TheAssociation acknowledged the technical progress of Project Oil Kenya butraised significant concerns that the current plan prioritized commercial objectives over the fundamentalrightsof local residents.The memorandum asserted that the community's social license to operate remainedcontingent upon a transition from corporate-centric "enablers"to a model of genuine partnership and shared prosperity.
• 730.The Association highlighted critical vulnerabilities regarding land, water,and traditional pastoralist livelihoods.They noted that the proposed development area overlappedwith vital ancestrallandsandwater sources,leading to demandsforan overhauled land acquisition process rooted in Free,Prior,and Informed Consent(FPIC). Furthermore,theyinsisted on thelegalprimacy of community waterrights overindustrial use,requiringthattheoperatorestablishnew,sustainablewatersourcesforthecommunity group also called for the creation of an independent,project-funded environmental watchdogaccountabletothecommunity.

731. Economic equity and transparentbenefit-sharingwere central to theAssociation's demands.Thememorandumcriticized theFDP'slackofdetailregardingthecommunity's shareofoil revenueandrequested thatParliamentenactaclearlawforthedirecttransfer offunds toa community-managed trust.Additionally,theAssociationmade the approval of theFDPconditional on thenegotiation ofa legallybindingCommunityDevelopment Agreement(CDA) to secure long-terminvestments in health,education,and infrastructure. Theyfurtherurged the Committee tomandaterising employment quotasforlocal Turkana professionals andtoenforcepreferentialprocurementforlocalbusinesses.

• 732.The reporting concluded with a call for integrated infrastructure planning that prioritizedthelong-termwell-beingofthepeopleoverthelogistical needsoftheoilproject. TheAssociationrecommended thattheCommitteesuspend FDP.approvaluntila comprehensivelegalframeworkforcommunityrightswasestablished.Theyproposedthe formationofaparliamentary-ledtripartitetaskforcecomprisingnationalandcounty government,theoperator,andcommunityrepresentativestooverseetheimplementationof theseframeworksandensure theprojectdidnotleadtofurthermarginalization.

5.3.16SubmissionbyBentworthEnergy.

• 733.BentworthEnergyLimitedsubmittedamemorandumtoprovideexpertoversightand technicalperspectiveon theSouthLokicharBasinoil developmentprogram.Drawingon overa decadeofexperienceasaKenyanoilfield servicesprovider,the company outlined the strategic economicpotentialoftheprojectwhilehighlighting criticalpolicygaps and operationalrisks thatnecessitatedlegislativeattention.Thereportdetailedaphased development approach for six commercial discoveries includingNgamia and Amosing aiming foraninitialproduction of 20,000 barrels per day (bpd),eventually scaling to 50,000bpd.
• 734.Thememorandumemphasized the significantscaleoftheproject,notingaplanned upstreamcapitalexpenditureexceedingUSD5.7billionovera25-yeartimeline.Bentworth observedthatwhilethebasin'sresourcesofferedalong-termrevenuestream,thetransition from road-based truckinginPhase1torail transportinPhase 2presented substantial logistical challenges.Specifically,concernswereraisedregarding thecapacity ofnational trunkroads tohandleheavytraffic,thereadinessofstorage systems at theKenya Petroleum RefineriesLimited(KPRL),andtheoverall safetyandenvironmentalrisksassociatedwith high-volume crude transport.
• 735.Environmentaland social governance(ESG)emerged asa primary focus,with the companyidentifyinghighsensitivitiesinwatersourcingfrom theTurkwelDamand the complexitiesoflandacquisitionwithinTurkanacommunities.BentworthurgedtheSenate tostrengthenmonitoringframeworksfortheimplementationofEnvironmentalandSocial ImpactAssessments(ESIA)andgrievanceresolution.Additionally,thereport highlighted theimmensetechnicalrequirementsoftheproject,whichinvolveddrillingover9o0wells andmanagingsignificantwaterinjectionneeds,andcautionedthattheseoperationsmust notcompromiselocalwatersecurityorenvironmentalsustainability.
• 736.Finally,thememorandumaddressed thecriticalneed forrobustlocalcontentand economicinclusion.WhileacknowledgingtheFieldDevelopmentPlan's(FDP)targetsfor alocal workforce and reserved trucking fleets for Turkana suppliers,Bentworth recommended thattheSenateestablishenforceableminimumlocalcontentthresholds and mandatoryannual audits.The companyconcludedbysuggestingthecreationofadedicated SenateOversightCommitteeandanationaloilfieldsupply-chainregistrytoensure that Kenyan small andmedium enterprises(SMEs)could effectivelyparticipate in and benefit from thishistoricresource opportunity.

5.3.17SubmissionbyEnergyGovernancePlatform

TheEnergy GovernancePlatform(EGP),representinga networkoffifteen civil society organizations,submittedaformalmemorandumon theproposedFieldDevelopmentPlan (FDP)and ProductionSharingContracts(PSCs)for the South Lokichar Basin.The EGP expressed significantreservations concerningthelegal,fiscal,and environmental frameworks oftheproject.

• 737.Akeylegalconcern wasthe distinctionbetweenratifyingan FDP andratifyinga contractunderArticle71of theConstitution;theEGPargued thatParliamentmustfirst ratifythenewcontractbeforeit can legally consider approving theFDP.Furthermore,they urgedParliament toinvestigate the beneficialownershipof the entities involved specificallyGulfEnergyandAuronEnergyto ensure thepartiespossess thenecessary financial and technical competencerequiredbythePetroleumAct.
• 738.The memorandum also highlighted critical fiscalrisks,particularly theproposal to increase thecostrecoveryceilingfrom65%to85%.TheEGPcautionedthatunderlower productionlevels,such an increasewould likely eliminate meaningfulrevenue forKenya for an extended period,asseen during previous"early oilphaseswhere explorationcosts threatened to absorb all net gains.They further questioned theprudence of granting extensive taxwaiversonVAT andimport levies,noting that theseexemptions couldshift the project's financial burden onto public funds.On the operational side,theEGPnoted a significant economiclossin thechosenmeansofproduction,pointingout thatdelivering oil byroad costs approximately $20perbarrel compared to$6viapipeline,a$14lossper barrel that they described assacrilegiousgiven the country's currentfiscal deficits.
• 739.Environmental and resource management issuesformed thefinal pillar of theEGP's submission.Theplatform raised alarms regardingwater security in the Turkanaregion, criticizingtheplantorelyontenexistingboreholesinanarea alreadysufferingfromwater scarcity.Additionally,they noted a concerning absence of reservoir monitoring establishedexperienceinupstreamextractioncouldleadtoshort-termextractionstrategies thatmightpermanently damage thereservoirs and undermine thelong-term sustainable exploitation ofKenya'snatural resources.

5.3.18SubmissionbyGEMAWathoAssociation

The GEMA Watho Association,a professional organization primarily comprising legal practitioners and advocates,submitted a comprehensive memorandum on the Field DevelopmentPlan andProductionSharingContracts(PSCs).

• 740.TheAssociation argued thatwhile theProductionSharingContractsforBlocks10BB and13TintheSouthLokicharBasinprovideabaselineforpetroleumactivities,they are fundamentaily outdated,having been cxecutedunder the-repealed1986legislation.They advised that the current framework fails to integrate the progressive mandates of the Pctroleum Act,20i9,risking the entrenchment of a resource curse characterized by environmental degradationandcommunitymarginalizationinTurkana.
• 741.Aprimary focus of thememorandum was the controversial2025 amendments that reportedlyraisedcostrecoverylimitsto85%,amovetheAssociationdescribedasathreat totimelygovernmentrevenue.Tocounterthis,theyrecommendedreinstatinga strict60% fraudulent cost inflation.Furthermore, the Association insisted on the immediate operationalizationofthe2019Act'srevenue-sharingformulaallocating75%tothenational government,20%tothe county,and5%tolocalcommunities tobemanaged through an independentlyauditedcommunitytrustfund.
• 742.The Association also highlighted significant gaps in government oversight and local economic inclusion.They proposed increasing the state's carried interest to 25% and requiringexplicitparliamentary approvalforanytransfer ofinterests toprevent opaque assetflipping,citingTullowOil's2025exit asapointofconcern.Onlocalcontent,the memorandum calledforenforceablequotas,includingan80%Kenyanworkforce and50%

localprocurementofgoodsandservices.Thesemeasureswereframed as essential to movingbeyond thevague"ifcompetitive"preferencesoftheoriginalcontractswhichhave historicallylimitedbenefitsforKenyanbusinesses.

• 743.Finally,theirsubmissionaddressed urgentenvironmental andhealthsafeguards inlight of documented harms in Turkana,such as contaminated groundwater andrisingrates of renaldisease.TheGEMAWathoAssociationdemanded theinclusionofstrictliabilityfor pollution,zero-routineflaringpolicies,andbindingCommunityDevelopmentAgreements (CDAs).Theyconcludedbyadvocatingforatriennialreviewmechanism toensure the PSCsremainadaptabletoevolvingnationaldevelopmentgoals andglobalsustainability standards.

5.3.19Submissionby theKenyaOiland GasWorkingGroup(KOGWG)

TheKenya Oiland Gas Working Group(KOGWG),submitteda formalmemorandum detailingsubstantivegovernance,fiscal,andenvironmental concernsregardingtheAddendum to theProduction Sharing Contract(PSC)and the South LokicharFieldDevelopment Plan (FDP).

• 744.The Group emphasized that while oil productionis a long-standing national objective, thecurrentcontractualamendmentswerestructuredinamanner thatexpandedfiscal concessions and cost recovery entitlements without sufficient publicdisclosure or demonstrableparticipation.
• 745.AkeyfocusofthememorandumwasthecontractualsecrecysurroundingthePsCs, which the KOGWG argued wasinconsistent with Articles 10,69,and 71 of the Constitution.The Groupspecifically criticized thelackoftransparencyin thereconstitution ofpetroleumblocksandtheSelectivedisclosureofmaterialaddenda,whichtheyclaimed underminedtheoversightmandateofParliament.Toaddressthis,theyrecommended that theMinistryofEnergyandPetroleumbecompelledtopublishfull,consolidatedversions ofthePSCstoensurethatstakeholderscanclearlyunderstandwhatrightsorobligations arebeingmodified.
• 746.Froma fiscal perspective,theKOGWGraisedalarmsover theproposaltoincrease the significantlydelaytheState'sreceiptofprofitoilandcreateincentivesforcontractorsto inflate recoverablecosts.Furthermore,the memorandumhighlighted that broadtax exemptionsforimportedgoods andforeignservicescreatea structuraldisadvantagefor Kenyanenterprises,effectivelyunderminingnational local contentobjectives andlimiting opportunitiesfortechnologytransfer.
• 747.TheKenya Oil and GasWorkingGroup(KOGWG)presented several technical and governance-basedjustificationsformaintainingthe annualcostrecovery capat 65%.They argued that this ceilingisessentialfor ensuringthat theStatebeginstoreceiveitsshareof profitoilinatimelymanner,ratherthan allowingpublicbenefitstobedeferredformany years throughexcessivecostoil deductions.Furthermore,thegroup asserted that alower capstrengthensfiscal discipline byreducingtheincentiveforcontractors to"gold-plate"or inflaterecoverablecosts,therebymakingprocurement controls andauditsmorecredible andenforceable.Aspartofthis fiscaloversight,the memorandum specifically warned against broadeningthedefinitionof CapitalExpenditure(CAPEX)toincludeindirect administrative costs ormanagementfees,notingthatsuch anexpansionwouldfurtherdelay therealizationofpublicrevenue.

• 748.In addition to fiscal matters,the KOGwG introduced sophisticated oversight requirementsregardingenvironmentalandhumanrightsprotections.Theymaintained that theFieldDevelopmentPlan(FDP)mustexplicitly addressriskstolandrights,water access, and laborconditions througharobust Human RightsDueDiligence(HRDD)framework. The group also demanded a standalone water security plan,approved by the Water Resources Management Authority (WRMA) and county governments,which would prioritize domestic andlivelihoodwater use over industrial requirements.Toprotect the Statefrom long-termliabilities,theyrecommended thatcontractorsbelegallymandated to postenvironmentalperformancebondstocoverthecostsofpotential spills,contamination, anddecommissioning.
• 749.Finally,the memorandum addressed the intersectionofinfrastructure and local content, expressing concern that blanket tax exemptions on imported goods create a structural disadvantageforKenyan enterprises.TheKOGWGobserved that such exemptionsmake importscheaper than locally supplied alternatives,which underminesnational goals for technology transfer andcapacitybuilding.Toremedy this,theyrecommended thatfiscal incentivesberestrictedtospecializedcapitalgoodsunavailablelocallyandthatanytax cxemptionsbe strictlyconditionedondemonstrable compliance withapprovedlocal content plans,includingspecifictargetsfor local procurement and employment.

5.3.20SubmissionbyMiriamOsogo

Ms.Miriam Osogo submitted a formal memorandumraising strong objections to the Field Development Plan (FDP) and Production Sharing Contracts (PSCs) for Blocks T6 and T7in theSouthLokicharBasin.

• 750.Invoking Article 118of the Constitution regarding public participation,she argued that these agreements mustundergorigorousparliamentary scrutiny and ratificationunder Article71toprotect thepublicinterest.Hersubmissionfocusedonwhatshecharacterized assystemicthreatstoKenya'ssovereigncontroloveritsnaturalresources.
• 751.Aprimary concern detailed in the reporting involved the lack of transparency surrounding the project's ownership.Miriam Osogo noted that Gulf Energy,which took overfromTullowOil,underwentmultiplechangesinname andownership structurewithin aremarkablyshorr timeframe,sometimes just daysbeforereceivinggovernment approval. She argued that these rapid shifts were suspicious and appeared designed to obscure the true beneficial owners of the entities taskedwith producing Kenya's oil.
• 752.Thememorandum also highlighted significant fiscal revisionsmade on November 25, 2025,which Osogo contendedwould severely diminish theeconomic benefitsforKenyans. Shespecificallycriticizedtheamendmentthatincreasedmaximumrecoverablepetroleum costs from55% to85%,alongsidea broadeneddefinitionofcapitalexpenditure.By reclassifying operational expenses such as labor,fuel,and maintenance as capital expenditure,the agreement effectively allowedprivate entitiestorecovernearlyallcosts beforeanyprofit-sharingwiththestatecouldoccur.
• 753.Furthermore,Osogo reported that the current agreement appeared to exempt Gulf Energy from complyingwithKenya'slocal content laws.Shemaintained that thiswas a directviolation of thePetroleumAct,2019,whichrequirestheprioritization ofKenyan labor,goods,and services.Inherconcludingrequests,sheurged the Senate to suspend the ratificationoftheFDPandPsCs,reversethedetrimental fiscalamendments,andenforce full legal compliance andpublic disclosure to ensure the nation's resources benefit its citizensratherthanprivateinterests.

5.3.21SubmissionbyMuchemiNdiang'ui

Mr.Muchemi Ndiang'ui,writing on behalf of theKenya National Interface Team(KNIT), submittedaformalmemorandumontheSouthLokicharBasin'sdevelopmentframework.The submissionwasmadeinaccordancewithArticle118oftheConstitution.and thePetroleum Act,providingaresponse totheproposedField DevelopmentPlan(FDP)and Production SharingContracts(PSCs)forBlocksT6and T7.While the teamadhered to theSenate's specifiednoticeperiod,theynotedthatthe extremetechnicalcomplexityofthedocuments whichexceeded5o0pagesrequiredadetailedanalysisthatwasstillongoingatthetimeofthis initialsubmission.

• 754.Thereportindicated thatKNIT'sprimaryrecommendationwasfortheSenatetoreject the currentFDPandPSCs as theywerepresented.Thispositionwas grounded inwhat the team described asforensicevidence ofstructuralrisks across commercial,infrastructural, andfiscal dimensions.Thememorandum asserted thatthe documents,intheircurrentform, didnotsufficientlyprotectthenation'sinterestsandrequiredamorethoroughevidenced reviewbeforeanyformalendorsementcouldbeconsidered.
• 755.Furthermore,thesubmissionclarifiedthatiftheCommitteechoseto:moveforwardwith an approval despitetheseobjections,such an endorsement shouldbe strictly contingent upontheadoptionofbindingconditionsdesignedtosafeguardtheKenyanpublicinterest. Mr.Ndiang'ui concluded thecorrespondence by offering theKenya'National Interface Team's availabilityforfurtherclarificationsordirectengagementto assisttheCommittee initsupcomingdeliberations.

5.3.22 Submission byRael Munquu Mue

Ms.RaelMunquuMue,acting asaprivate citizen,submitted amemorandum on thefollowing issues;

• 756.Ms.Rael framed her concerns around the constitutional mandate for citizen input, transparency,and accountability in themanagementofKenya'snaturalresources.She expressedadesiretoseepetroleumdevelopmentcontributetothenationaleconomy,but onlyifitcouldguaranteethesafetyoflocals,protectdelicate ecosystems,andensurefair benefit-sharing.
• 757.A significantportionofRael'smemorandumfocusedoncommunityrightsand environmentalrisks.Shequestionedwhether thehostsocietieswouldreceivetangible advantagesandifcommunitydevelopmentplanshadcleartimelines.Sherecommended thattheSenate ensurebenefit-sharingsystemswerelegalandenforceable,treatinglocals as active stakeholders rather than mere observers.Regarding the environment, she highlighted threatstowatersources,pastoral livelihoods,andgrazingland.Sheurgedthat a completeEnvironmental andSocialImpactAssessment(ESIA)becirculatedseparately before approval,detailingspecificmitigationandcompensationmeasures.
• 758.Furthermore,Rael emphasized the needfor transparencyin theProduction Sharing Contracts.She argued that the populace andParliament needed clarity on revenue-sharing formulas,cost-recoveryprovisions,and stateliabilities.Sherecommended thatthe terms ofthePSCsbeexplainedinplainlanguage tothegeneralpublicandthatindependent expertsbeconsulted byParliament.Finally,sheaddressedlocalcontent,insisting thatoil exploration should translateinto commercial opportunitiesforKenyans,particularly the Turkanapeople.Shecalledfordistinctemploymentquotas,comprehensiveskillstransfer, andthepromotionoflocalsupplierstostrengthentheregionaleconomy.

5.3.23SubmissionbySammySisungo

Mr.SammySisungosubmitteda formal memorandumofferinghisviews asaprivatecitizen on theproposedoil developmentinBlocksT6andT7.

759. Identifyinghimself asapolicy thinker and economic liberator,Sisungogrounded his submission in the constitutional principles ofpublicfinance and integrity.His primary objectivewastoensurethattheratification oftheFieldDevelopment Plan(FDP)and associatedProductionSharingContracts(PSCs)didnotfacilitatestate capture orprioritize privateinterestsover thewelfareoftheKcnyanpeople. 2. 760.A significant portion of the memorandum was dedicated to fiscal objections, specificallyregardingthereportedincreaseinmaximumrecoverablecostsfrom55%to 85%.Sisungoargued that thiscapviolatedArticle 69of theConstitution,whichmandates the equitablesharingofaccruingbenefits,byeffectively allowingthecontractorto takethe lion's share ofrevenue whileleaving thepublic withnegligibleprofit oil.Hefurther contended thatthis highcost-recoveryrateburdened thecurrentgenerationwhiledelaying benefits forthefuture,a directcontradictionof theprinciples ofpublicfinance outlined in Article201.Consequently,heurged theSenate torejectanycontract permitting suchahigh recoupmentrate. 3. 761.The submission also scrutinized the reclassification of operational costs such as labor, fuel,and repairs as"Capital Expenditure"under the amended Clause 27(2)(b).Sisungo warned thatthisunusualreclassificationundermined theAuditorGeneral'smandateunder Article229byblurringthelinesbetweenlong-terminvestmentanddailyrunningcosts. 4. 762.He argued that this lack of claritywould make"gold-plating,"or the artificial inflation ofcosts,invisible to state auditors,thereby allowing the contractor to recover daily expensesundertheguiseofinvestment.Topreservefiscalaccountability,herecommended that the Senaterestrict the definition of CapitalExpenditure strictlyto physical infrastructure. 763. Regarding economic inclusion and governance,Sisungo demanded strict adherence to the PetroleumActof2019and theLocalContentBillof2025.Heproposedspecific threshoids.includingan"80/20Ruie"requiring80%oftheworkforcetobeKenyancitizens and a mandate that at least60%ofgoods and serviccsbesourccdfromKenyan firms. 764. Finally,citingtheRighttoInformationunderArticle35and theintegrityrequirements ofChapterSix,he called for fulldisclosure oftheproject's beneficial ownership.He tableareporton the"Know Your Customerdetailsofthenewownersprior to any ratificationtoruleoutpotential conflictsofinterestinvolvingstateofficers.

5.3.24SubmissionbyZikharaSolutionsLtd

Zikhara SolutionsLtd,afullyKenyan-ownedoilfield servicescompany,submitteda detailed memorandumontheField DevelopmentPlan(FDP)andProductionSharingContracts(PSCs) forBlocksT6andT7.

• 765.As a stakeholderwith direct operational experience in the earlier phases of theTurkana OilProject,the companyprovided a uniqueperspectivefocusedon industrial capacityand supply chain continuity.Theyreported having previously supplied oil-fieldproduction chemicals,personal protective equipment(PPE),andenvironmental monitoring solutions tothe project.Drawing from this experience,theyhighlighted theproject'sproven ability tostimulate economicactivity,noting that during their engagement,50%of their site

workforce hadbeen recruited directlyfrom Turkana County,with theremainder comprisingKenyannationalsfromotherregions.

• 766.The submission argued that theSouthLokicharBasinrepresentsa strategicupstream resource essential for national revenue,export earnings,and regional energy competitiveness.ZikharaSolutionsobservedthattherecentslowdowninprojectactivity had materially affected local livelihoods,disrupted business ecosystems,and eroded investorconfidence intheregion.Consequently,they characterized the approval oftheFDP asa criticalopportunitytounlocklong-terminvestmentcertaintyandrestoreeconomic stabilitytoTurkana.Theyassertedthatdisciplinedimplementationofthecontractswould reinforcebusinessconfidenceamongthenational andregionalenterprisesthatsupport the sector.
• 767.While expressing strong supportfor the project's advancement,the company attached aspecificannexofformalrecommendationstoensuresustainablenationalparticipation. Theyproposed thattheOperatorberequired to submit aLocal ContentImplementation Plan"prior to thecommencement ofmajor project phases,which would detail specific categories ofgoods andservicestobe sourced locally.Furthermore,toprotectsmaller local businesses, they recommended the implementation ofa "Supplier Development and forqualifyingSMEs.
• 768.Finally,thememorandumaddressedenvironmentalandsocialgovernance,urgingthat allactivitiesconformtostandardsprescribedbytheNationalEnvironmentManagement Authority (NEMA).Zikhara Solutionsrecommended that independent environmental audits beundertaken at legally prescribed intervals,with non-confidential findingsmade accessibletostakeholderstoensure transparency.Theyconcludedbystatingthatwiththese strengthenedoversightmechanismsinplace,theprojectcouldonceagainserveasa catalyst for skills development,enterprisegrowth,andnational economicvalueretention.

5.3.25SubmissionbyProfessorPLO-Lumumba,SC

ProfessorPLO-Lumumba,SC,submitted amemorandum on theproposedFieldDevelopment PlanandProductionSharingContractsforBlocksT6andT7inTurkana.

• 769.He argued thatnaturalresourcesarea constitutional trust heldby theStateforpresent andfuture generations,notmere economic assets.He stated thatArticle 71 imposes a substantivedutyonParliamentto approveresource agreements,and thatratificationisthe momentwhenthepeopleassertultimate authorityover their inheritance.
• 770.Hesubmitted thattheSenatebearsheightenedresponsibilityregardinghistorically marginalisedregionslike Turkana,servingastheconstitutionalconscienceofterritorial equity.
• 771.Hesubmitted thattheFDPandPSCsarefunctionallyinseparableandtogether constituteacomprehensiveregimewhoseimplicationswillextendbeyondthepresent generation.He expressed concern that parliamentary approval risks degenerating into formalisticratification,where agreementsare politically committed before reaching Parliament,leavinggenuinescrutinynarrowed,andoversightcollapsed intochoreography.
• 772.He arguedthatconstitutionalscrutinydemandsinterrogationof whetherthe developmentmodelalignswith nationalinterest,notmerelyproject profitability.On infrastructure,hequestionedwhetheritwouldserveenduringpublic.utilityor leavebehind stranded assets.On the environment,he stated that Article 69 requires sustainable

exploitation,with harm minimised at source and remediation adequately funded.On decommissioning,he argued that end-of-life considerations must be integrated from inception.

773. Hesubmitted thatPSCsbind theRepublicfordecadesandwarrant exactingscrutiny. Onrevenue allocation,he argued that high-cost recovery ceilings postpone State benefit indefinitely.Onstabilisation clauses,he expressed concern that theymayfreezeregulatory space andimpairKenya'ssovereign capacity tolegislate in thepublicinterest.On dispute resolution,he noted thatremoving disputesfrom domestic legal systems distancespublic accountabilityfrompublicconsequence. 2. 774.He argued that Turkana communities are constitutional rights-holders,not peripheral stakeholders.He stated that the Constitution recognisesrights to a clean environment, property,development,and participation,which require structured inclusion and enforceableentitlements,notepisodicconsultation. 3. 775.He submitted that petroleum extraction convertsnatural capital into financial capital, with therisk that gains dissipate while environmental damage endures.He argued that Parliament stands astheinstitutionalvoice offuturecitizens andmust askwhetherproceeds fundlong-termpublicgoodsrather thanshort-termconsumption. 4. 776.He argued that access to information is the precondition for every other constitutional safeguard.He submitted that the Senate has the authority to demand disclosure and conditionapprovalonopenness. 5. 777.He urged the Senate to choose constitutional courage over expedience,insisting that development occuron terms thathonour sovereignty,protectcommunities,safeguard the environment,andrespectfuturegenerations.Hesubmittedthatlegitimacydependsontrust, fairness,andconstitutionalfidelity,notspeedorscale

5.3.26 SubmissionByMs.CentrinaOtieno,a ConcerncdKenyan Citizen

Ms.Centrina Otieno submitted a memorandum raising constitutional and legalobjections to the proposcd FieldDevelopmentPlan and Production Sharing Confracts forBiocks T6and T7.

• 778.She expressed grave concern over rapid ownership changes of the operating company (Gulf Energy,formerly Tullow Oil) shortly before FDP approval.She argued this raises questions on beneficial ownership transparency,contrary toArticles 10 and 73of the Constitution.

779. Shedrewaitention tothe25thNovember2025amendmentincreasingmaximum recoverablecostfrom55%to85%.ShestatedthisfundamentallyunderminesKenya's entitlement topetroleumrevenuesand appearsinconsistentwithArticle7l,whichrequires naturalresource agreementstosecureclearbenefittoKenyans.

• 780.She noted that amendment of Clause 27(2)(b)now expansively defines capital expenditure toinclude labour,fuel,maintenance,hauling,supplies,anddecommissioning costs.She argued thiscreates a fiscal structurewhere nearly all revenues maybe treated as recoverablecosts,defeatingthepurposeofprofit oil.
• 781.She expressed disappointment over the project's exemption from Local Content legislation.ShestatedthisunderminesSection6ofthePetroleumActandviolatesArticles 201and232onequitableeconomicdevelopment.

• 782.Shesubmitted thatpublicparticipationwasnotmeaningfulor adequateforaffected Turkana communities,contrarytoArticles 10 and118requiringinformed and inclusive engagement.
• 783.She argued theFDPinsufficiently addressesenvironmentalprotection,landrights,and communitylivelihoodrisks,raisingconcernsunderArticles42and69.
• 784.Shestatedtheframeworklacksclarityonequitablerevenuesharingbetweenthe National Government,theCountyGovernment,and localcommunities,contrarytoArticles 202and203.
• 785.Sheurged theSenate to declineratificationof the currentFDPandPSCs,orrequire substantialrenegotiationtoensure transparency,constitutional compliance,local content protection,environmental sustainability,andfair economicreturnsforKenyans.

5.3.27SubmissionbyMr.BrianKipchumbaMaiyo

Mr.Brian Maiyo,anindustrial sector professional,presented a memorandum pursuant to constitutional andstatutoryprovisionsonpublicparticipationinnaturalresourceagreements.

• 786.Heexpressedconditional supportfor thecommercializationofKenya'soilresources while urging the Committee to address concerns relating to fiscal safeguards,local participation,environmental protection,and contractor capacity.The submission framed theseissues asessential to ensuringtransparency andlong-termnationalbenefit.
• 787.Thememorandumraised concernoverreportsthattherecoverablecost ceilingmay haveincreasedfrom65percentto85percent.Thesubmitterarguedthatsuchanadjustment could delay government profit realization and reduce early public returns.He recommended thattheCommitteerequireanindependentauditofrecoverablecoststo guardagainstinflatedclaims andprotectfiscal integrity.
• 788.ThesubmissionquestionedwhethertheFDPclearlyspecifiedKenyanparticipationin employmentandsubcontracting.Thesubmitterrecommendedthatlegallybindinglocal contentprovisionsbeembeddedinthedevelopment framework,including defined participationquotas for firmsbased in Turkana andWestPokot toensure meaningful regional inclusion.

789. Thememorandumhighlightedenvironmentalrisksassociatedwithtransportingwaxy crudeoil,emphasizingtheneedfortransparentecologicaloversight.Thesubmitterurged thatenvironmentalimpactassessmentsbepubliclydisclosedbeforeratificationtoenable informedscrutinyandcommunityassurance.

• 790.Thesubmissionstressed theimportanceofsafeguardingbenefitsintended forhost communities.The submitterproposedestablishing anindependentrevenueoversight mechanism thatincludes communityrepresentation tomonitor allocationsand enhance accountability.
• 791.ThememorandumalsoreferencedthetransitionofoperatorshiptoGulfEnergyE&P BV,notingpublicquestionsregardingtechnicalandfinancial capacity followingthe exit ofprioroperators.Thesubmitterencouragedduediligencereviewtomaintaininvestor confidenceandoperationalreliability.

• 792.The submissionconcluded thatoil commercialization shouldproceedin amanner that protects transparency,environmentalresponsibility,and equitableeconomicparticipation. The submitter positioned his recommendations as safeguards to align petroleum developmentwithnationallong-terminterests.

5.3.28SubmissionbyMr.KelvinNyariboJomo

• 793.Mr.Kelvin Nyaribo registered formal reservations regarding the Field Development Plan(FDP) and associated Production Sharing Contracts(PSCs)for Blocks T6and T7in the South Lokichar Basin.His memorandum urged the Committee to subject the agrcements to heightened scrutiny,arguing that recent contractual and corporate developments raised concerns about ownership transparency, fiscal balance, and compliance with domestic legal frameworks.The submission framed these issues as mattersofpublicinterestrequiringparliamentary oversight.
• 794.The memorandum questionedrapid corporate transitions involving the contractor identified asGulfEnergyE&P BV.The submitter argued thatcompressedownership changes occurringnear theperiodofgovernment approvalcreateduncertaintyregarding beneficial ownership and raised concerns about transparency.He maintained that such opacitycouldunderminepublictrustandwarrantedfulldisclosure andverificationbythe Committee.
• 795.The submission objected to a contract variation that increased the recoverable cost ceilingfrom55percentto85percent.Thesubmitter arguedthatthisshiftmateriallyaltered thefiscal balanceofthePsCframeworkbyreducing theshareofpetroleumrevenues accruingto theState.Heframed theamendmentasinconsistentwith theconstitutional expectationthatnaturalresource agreementssafeguard thenational interest.
• 796.Related concerns were raised about amendments broadening the definition of capital expenditure toinclude operational costs such as labour,fuel,andmaintenance.According tothe submission,thischangeriskedinflatingrecoverable expenses andreducingnetpublic benefit.

797. Thememorandum expressed concernthattheprojectstructurecouldeffectivelyexempt the contractor from domestie local content requirements.The submitter argued that any such cxemption would weaken legislative intent to promote local empioyment,supplier participation,and skills development,thereby undermining confidence in the regulatory framework.

• 798.Taken collectively,the submitter interpreted the ownership changes, fiscal amendments,andregulatory concerns as indicators ofweak governance safeguards.He urged Parliament to assertits oversight role to ensure transparency,fiscal equity,and protectionofpublicresources.
• 799.The submission called for beneficial ownership disclosure,reconsideration of the revised cost recovery ceiling, restoration of clearer expenditure classifications, enforcement of local content obligations,and public hearings in Turkana County to facilitatecommunityparticipation.
• 800.Thememorandum concluded thatpetroleum development should proceed only under arrangementsthat demonstrate transparency,accountability,and equitablebenefit sharing, consistentwithconstitutionalprinciplesandpublicexpectations.

5.3.29SubmissionbyMr.Sani Nzevela

• 801.Mr.Sani Nzevelaprovided a strategicreviewof theSouth Lokichar Basin Field DevelopmentPlan and attacheda draft policy-style governmentresponsememorandum. The submission approached theFDPfromanational economicperspective,acknowledging itstechnical andcommercialstrengthwhilearguing thatitscurrentstructureemphasized export-ledproductionwithlimiteddomesticvaluecapture.Thememorandum framed petroleum development as an opportunity for industrial policy,capital market deepening, andcitizenparticipationinnationalwealthcreation.
• 802.Heacknowledged that theFDPwas technicallyrobust,commerciallybankable,and structured tosupport phased development.Henoted thattheproductionprofile,engineering planning,andfiscalalignmentweresufficientto attractinvestor confidence andsupport a finalinvestmentdecision.
• 803.However,the analysis argued that the plan primarilyfacilitated crude export rather than integrated domesticindustrial development.According to the submission,this approach riskedperpetuatingKenya'srelianceonrefinedfuelimportswhilelimitingdownstream value additionandcapitalformation.
• 804.Thememorandumhighlightedfour principalgaps:
• i. Export-orientedstructure:Crude exportwasprioritizedoverdomesticrefining andvalueaddition.
• ii. Limitedrefiningstrategy:Existinginfrastructure,includingfacilitiesassociated withKenyaPetroleumRefineriesLimited,wastreatedaslogisticalratherthan industrial assets.
• iii. Externalisedfinancing:Project capital structures were largelydependent on foreign investors anddebt,withminimal domesticparticipation.
• iv. Restrictedcitizenownership:Localcontentprovisionsfocusedonemployment andprocurement,withlimitedavenuesforKenyancapitalparticipation.
• 805.He argued that these gaps constrained long-term national economic benefits and intergenerationalwealthcreation.
• 806.Through adraftgovernment responseframework,the submitterproposed aligningFDP implementationwithabroaderindustrialandfinancialstrategy.Keyproposalsincluded:
• i. Phaseddevelopment thatincorporateddomesticrefiningcapacity andproduct processing.
• ii. Sovereign-backedparticipationinmidstreamandrefininginfrastructure through special purposeinvestmentvehicles.
• iii. Structured capitalmarketparticipationvialistingson theNairobi Securities Exchange toenablepensionfunds,institutionalinvestors,andcitizenstoinvest inpetroleuminfrastructure.
• iv. Integration ofassociatedgasintodomestic energy andindustrialuses.
• 807.Thesemeasureswereframedasinvestor-compatiblereformsdesigned toretainfiscal stabilitywhileexpandingdomesticeconomicparticipation.
• 808.The submission emphasized maintaining investor confidence through predictable timelines,respect for fiscal stability provisions,and non-interference with contractor operatorship.Theproposedframeworksoughttobalancenationalindustrialobjectiveswith contractual certainty.

• 809.Thememorandumconcluded thatwhile theFDPwas technicallysound,Kenyarisked missing broader economicopportunities if developmentremained export-focused.The submitter positioned domestic refining,sovereign investment participation,and capital marketintegration aspathways toconvertpetroleumproduction intolong-termnational capital formation andcconomicresilience.

5.3.30 SubmissionbyMr.JustusAtuti

• 810.Mr.Justus Atuti presented a memorandum opposing what he described as an opaque Production Sharing Contracts(PSCs) for Blocks T6 and T7in the South Lokichar Basin. The submission was grounded in constitutional provisions on transparency,access to information,environmental stewardship,andparliamentary oversight.Thememorandum arguedthat meaningfulpublicparticipationrequired full disclosure ofownership,fiscal terims,and benefit-sharing arrangementsbeforeratificationcouldbe considered.
• 81l.He anchored his arguments in constitutionalprinciples relating to transparency, accountability,and equitable resource management.He maintained that parliamentary approval underArticle71mustfollowinformedpublicparticipation and accesstorelevant information.Anyprocessperceivedaswithholdingcritical contractual or ownershipdetails waspresentedasinconsistentwithconstitutional obligationsandstatutoryintent.
• 812.The memorandum raised concerns regarding corporate restructuring involving Gulf EnergyE&PBVfollowingitsassumptionofresponsibilityfortheFDP.Thesubmitter argued thatrapid ownershipchangesraised legitimate questions aboutbeneficial ownership disclosure and potential conflicts ofinterest.Heurged the Committee to require full documentation relating to ownership transfers,due diligence processes,andregulatory approvalstosafeguardpublictrust andcompliancewithintegritystandards.
• 813.Thesubmissionquestioned howthe contractoremerged as theleadentityafterprior operators and calledforclarityonwhether statutoryprocurement andpetroleum lawswere fullyfollowed.Thesubmitteremphasized theimportance oftransparentevaluationcriteria, capacity assessments,and regulatory compliance to maintain legitimacy in strategic resourcetransactions.

814. The memorandum expressed concern about reported amendments incrcasing cost provisions couldsignificantly delay publicrevenuerealization.The submitter also questionedwhether anycontractualarrangements exempted theprojectfrom domesticlocal contentobligations.These issueswereframedasmattersoffiscal equity,opennessinpublic finance,andprotectionofnational economicinterests.

• 815.The submissionemphasized that extractive developmentin Turkana shouldproduce measurable benefits for local communities,including employment,infrastructure,and skills transfer.Thesubmitter also highlighted theneedfor environmentalprotections and inclusive participation ofvulnerable groups.He argued that benefit-sharing frameworks shouldbeclearlydocumentedandpubliclyaccessiblepriortoapproval.
• 816.Thememorandum stated that effectiveparticipationrequiredproactive disclosureof keyprojectdocumentsandadequatetimelinesforreview.Thesubmitterurgedbroader engagementwithcounty stakeholdersandpublichearingstoensureinformedscrutinyof theFDPandPSCarrangements.

• 817.HerequestedthattheCommitteewithholdapprovalpendingfull disclosureandreview, verifybeneficialownershipandprocurementcompliance,reassessfiscalprovisions,affirm local content obligations,and secure enforceable community benefits.He further recommendedthatinvestigationsshouldevidenceofirregularitiesarise.
• 818.Thesubmissionconcludedthatparliamentary oversightshouldprioritizetransparency, equity,andconstitutionalcompliancetoensurethatnaturalresourcedevelopmentadvances thepublicinterest andlong-termnationalwelfare.

5.3.31SubmissionbyMr.NalianyaSungwachaAugustine

• 819.Mr.Nalianyapresented a formalmemorandum addressing theSouthLokicharField DevelopmentPlan(FDP)andassociatedProductionSharing Contracts(PSCs)forBlocks T6 and T7in Turkana County.The memorandum was grounded in constitutional and statutory principles governing public finance,natural resource management, and parliamentaryoversight.Thesubmission arguedthattheSenate'sratificationrolerequired substantivescrutinyofownershiplegitimacy,fiscalstructure,andlong-termgovernance risks,ratherthanproceduralapproval.
• 820.Thememorandum anchoredits argumentsinconstitutionalprovisionsrelatingtopublic participation,environmental stewardship,fiscal responsibility,and intergenerational equity.Thesubmittermaintained thatParliament'smandate extended tosafeguardinglongtermnationalinterestsandensuringextractiveagreementscompliedwithstatutoryintent. Thisframingpositioned theSenate as a gatekeeper responsible for interrogating the structuralimplicationsoftheFDPandPSCarrangements.
• 821.Thesubmissionhighlightedrapidcorporaterestructuringinvolvingthepetroleum contractoridentifiedasGulfEnergyE&PBVaround theperiodofFDPsubmissionand approval.The submitter argued thatsuch timingraisedlegitimate questionsregarding beneficial ownershiptransparency andregulatory duediligence.Hewarned that ratification withoutverifiedownershipdisclosurecouldexposetheState toenforcementchallenges, fiscal oversightrisks,andreputational consequencesininternational markets.
• 822.Thememorandumobjectedtoamendments thatincreased thecostrecoveryceilingand broadenedrecoverableexpenditure categories.Accordingtothesubmission,thesechanges altered the economicbalance of thePsCframework by deferringgovernment profit oil and weakening fiscalpredictability.Theexpansion ofrecoverablecostswas describedas blurring the distinction between capital and operating expenditure,potentially creating auditcomplexityandreducinglong-terimpublicvalue.
• 823.Heframed theseissuesasinconsistentwithprinciplesoffiscalprudenceandequitable resource management,particularly where public institutions may face limitations in monitoringexpansivecostcategories.
• 824.Thememorandumraisedconcern thatPSCstructuringcouldeffectivelyexempt the contractorfrom domesticlocal contentrequirements.Thesubmitterarguedthatexecutive contractualprovisionsshouldnotdisplacestatutoryobligationsintendedtopromote anysuchexemption aslegallyquestionable andcontrarytolegislativeintent.
• 825.Thesubmissionconnectedfiscalandgovernanceconcerns topotentialsocio-economic effectsinTurkana County,warningthatperceivedinequitiescouldheightencommunity

grievancesandlong-teriminstability.Thesubmitteremphasizedthatextractivegovernance structuresmustaccountfor localeconomicinclusionandsociallegitimacy tosustain operationsandpublicconfidence.

• 826.The submitter urged theSenate towithholdratificationpendingbeneficialownership disclosure,reasscss fiscal provisionsrelated to costrecovery,restore clearer expenditure definitionsaffirmtheapplicabilityoflocalcontentlegislation,andrequirebroaderconflict and political-economy assessmcnts before approval.These measures were framed as safeguardstoprotectconstitutionalprinciples,fiscalaccountability,andsocial stability.

5.3.32SubmissionbytheSocialPerformanceProfessionals'Alliance

• 827.The Social Performance Professionals'Alliance(SPPA) submitted a memorandum addressing the social,environmental,and community governance dimensions of Field Development Plans (FDPs) in extractive and energy projects.The submission emphasized thatwhileFDPstraditionallyfocused ontechnical andfinancial considerations,insufficient integration ofsocialperformancehadcontributed tooperationaldelays,community disputes,andweakened trustinproject-hostingregions.SPPAframedsocial performance not asaperipheral complianceissue,but asa core determinant ofprojectsustainability and national stability.
• 828.SPPA observed that FDPs often prioritized engineering andproduction parameters while treating community impacts,land access,livelihood restoration,grievance management,and long-term socio-economic transition as secondary matters.Accordingto the submission,this imbalance had been particularly evident inextractive-hosting counties, whereweak social planning hadresultedintensions betweencommunities,operators,and government institutions.
• 829.The memorandum stressed that FDP governance should reflect constitutional obligations relating to public participation,environmental protection,labour rights,and responsiblenaturalresourcemanagement.
• 830.TheAlliance identified several structuralweaknessesin currentFDPpractice:
• Sociai performanceconsiderationswere frequentiy addressed as annexesrather than integratedprojectrisks.
• 11 CommunityparticipationinFDPformulationwas limiteddespite constitutional expectations.
• ili. FDPsshowedinconsistent alignmentwithconstitutional safeguards and county developmentframeworks.
• iv. Benefit sharing,employment,and local content commitments lacked clarity, creatingunrealisticexpectations.
• V. Social accountabilityprovisionswereoftennon-binding,withweakmonitoring andenforcementmechanisms.

831. SPPA argued that thesegaps undermined both community confidence and investor certainty,increasingthelikelihoodofdisputes andproject disruption.

• 832.SPPA recommended reforms aimedat embedding social performance into FDP governance.These included requiring a dedicated social performance chapter in FDPs, strengthening early-stage community participation,aligning FDP approvals with county development frameworks,and institutionalizing independent social oversight during regulatoryreview,

• 833.The submission further proposed that social commitmentsbelegally enforceable costed,and subject to periodic reporting.It also called for clearer local content and workforcetransitionplanningtosupportsustainableeconomicbenefitsinhostregions.
• 834.SPPAurgedtheSenate toexercisestrengthenedoversightofFDPapprovals,support legislativereformsembeddingsocialperformancestandards,andpromotecoordination between national and county governments.The Alliance positioned these actions as essential tobalancingcommunityprotectionwithnational economicpriorities.
• 835.The submission concluded thatintegratingrobust social performance standardsinto FDPs wasa practicalrisk-managementand value-creation strategy rather thanan administrative burden.SPPA expressed readiness to support Parliament through professionaladvisoryandindependentreviewmechanisms.

5.3.33SubmissionbyMr.IslimShikunyiImran

• 836.Mr.Shikunyi presented amemorandumpursuant toArticle118of theConstitution in response totheSenate'spublicparticipationprocesson theTurkana Oil Field Development Plan andassociatedProductionSharing Contracts.Thememorandum raisedgovernance and fiscal concerns,arguing that certain proposed contractual arrangements risked weakening transparency,publicbenefit,and compliancewith theconstitutional framework governingnaturalresources.
• 837.He expressed concern about the absence of clarity regarding company ownership structures,notingthatlimiteddisclosurecouldunderimineaccountability andpublictrust.
• 838.Hefurtherobjectedtotheproposedincreaseinrecoverablecoststo85%,arguingthat suchathresholdwouldsignificantlyreduce therevenueavailableforpublicbenefit. Related to this,the memorandum questioned the expansion of capital expenditure definitionstoincludeoperatingcosts,statingthatthiscouldinflaterecoverableexpenses anddelayequitablerevenuesharing.
• 839.The submission alsoraisedconcern over proposedexemptionsfromKenya'slocal contentrequirements,warningthatsuchprovisionscouldweakendomesticparticipation andreduceopportunitiesforKenyanenterprises.
• theConstitutionandthePetroleumAct,2019,particularlyinrelationtotransparency,fiscal prudence,andprotectionofnationalinterests.
• 841.Heurged theSenate tosuspendratificationoftherelevant agreeimentspendingfurther investigation,with the objective of safeguarding Kenya's economicand governance interests.

5.3.34SubmissionbyEsanyanaitAssembly

• 842.TheEsanyanaitAssembly submitted a memorandumraising substantivefiscal,legal, andgovernanceconcernsregardingtheFirstAddendumtotheProductionSharingContract (PSC)forBlockT7.Theirsubmissionfocusedprimarilyon theproposedincreaseinthe costrecoverycapunderSection27(l)and theintroductionofastabilizationclauseunder Section33A.The Assembly argued that,as drafted,theprovisions disproportionately favouredthecontractorandriskedunderminingcommunitybenefitsharing,fiscal equity, andconstitutionaloversight.

• 843.TheAssemblyexpressed strong concern that theproposed increase in the costrecovery ceilingfrom65%to85%wouldsignificantlyreducetheprofitoilavailabletogovernment and host communities.They noted that the statutory community shareis derivedfrom government profit oil,and therefore a higherrecovery capwould delay ordiminish tangible benefitstotheTurkanacommunity.
• 844.The submission argued that such a cap exceeded prevailing international PsCnorms and couldresult inaprolongedperiod duringwhich the contractorprioritizedcostrecovery over equitablerevenue sharing.TheAssemblywarned that this structureriskedcreatinga situationwhereresource extraction proceededwithout correspondingsocio-economicgains forthehostpopulation.
• 845.In addition to fiscal concerns,the Assembly highlighted governancerisks,including inadequate verification ofrecoverable costs,potentialinflation ofexpenses,and limited transparency in subcontracting arrangements.They advocated for stricter auditing requirements,clearer cost classificationrules,enhancedpublicdisclosure,andsafeguards toensurelocaleconomicparticipation.

846. Overall, the Assembly framed Section 27(1) as a matter of fiscal fairness, accountability,andprotectionofcommunityinterests.

• 847.The Assembly furtherraised constitutional and policy concerns regarding the proposed stabilization clause.They argued that the clause,as drafted,could restrict Kenya's sovereignauthority toenactfuturelegislationaffectingpetroleumoperations.
• 848.The memorandum emphasized that such restrictions couldweakenParliament's ability tointroduce environmentalprotections,labour safeguards,public health standards,and accountabilitymechanisms.TheAssemblymaintainedthatstabilizationprotectionsshould notoverrideconstitutionalprinciplesorthestate'sobligation toactinthepublicinterest.
• 849.They therefore called for explicit carve-outs to preserve the government'slegislative authoritynareasrelatingtoenvironmental protection,humanrights,fiscaloversight,and communitywelfare.

850. This section of the submission waspresented as a defence of constitutional supremacy and long-term regulatory flexibility.

• 851.The Assembly urged Parliament to reject the Addendum in its current form,reduce the proposed cost recovery cap,safeguard legislative authority through carve-outs,conduct forensic audits of recoverablecosts,andensure public disclosure of the final PsC.These measures were framed as necessary to protectfiscal sovereignty,transparency,and host communityrights.

CHAPTERSIX

6.0COMMITTEEOBSERVATIONS

Arising from thepublichearings,deliberationswith the stakeholders andanalysisof the submissions,theJointCommitteemadethefollowingpertinentobservations:

6.1 Observations on Compliance andPublicParticipation

Compliancewiththerequirementsundersections30and31ofthePetroleumAct

• 1.TheJoint Committeenoted thatsection30(2)of theActprovides therequirements of aFieldDevelopmentPlan.TheJointCommitteeobserved thatincompliancesection 30(2)ofthePetroleumAct(Cap.308)withthefielddevelopmentplanforacommercial field,thePlansubmitted:
• a) containsacomprehensivestatementon theproposalsfor thedevelopmentof andproductionfrom thefield(pages22,23,24,25,195,203and220);
• b)doesnot contain an express statement on the assessment of whether the developmentofandproductionfromthefieldshouldbesubjecttounitization orjointupstreampetroleumoperationsin accordancewiththeprovisionsofthe Act,however,theJointCommitteenotedthatthereisastatementindicatingthe development area is a defacto unitizationas theblocks arebeingmanaged by one contractor;
• containsa comprehensivestatementonanassessmentofhow tocoordinate upstreampetroleumoperationswithothercontractors,includingthejointuseof facilities subject to this Act and any other applicable law(pages23,24,and 239);and
• d)containsa comprehensive statementon proposalsrelating to the spacing drillingandcompletionofwellsandthefacilitiesrequiredfortheproductionof petroleumincluding:
• (i) containsacomprehensivestatementontheestimatednumber,size and production capacity ofproduction platforms,if any;(pages23, 24,and239),
• (i) containsacomprehensivestatementontheestimatednumberof productionwells(pages23,and226);
• (iii) (ii) contains a comprehensive statement on the particulars of production equipment and facilities(pages 23,24,and239);and
• (iv) (iv)contains acomprehensivestatementontheparticularsoffeasible alternativesfor transportation ofpetroleum includingpipelines;and any otherrelevant information and data(pages23,24,and 239).
• containsstatementsonrelevantinformationanddata,thatis,Environmental& SocialGovernance(Section10,page 253onward),Landand resettlement framework(page 282under Host GovernmentEnablers),Economic analysis andrevenue split(Section12,page271onward)andProfitoil split(Table131,page 285).

TheJointCommitteeobservedthaton13hFebruary,2026,theSolicitorGeneral appearedbeforetheJointCommitteeandstatedthattheofficeoftheAttorneyGeneral consideredtheFDPlaidbeforeparliamentissound.

TheJointCommilteefurtherobservedthattheCabinetSecretaryapprovedtheField DevelopmentPlanon5hNovember2025andsubmittedtoParliamentforratification on27hNovember2025withinthethirtydaysstipulatedinsection31(1)ofthe PetroleumActandArticle7loftheConstitution.

PublicParticipation

• 2.The Joint Committee noted that submissions from:CentrinaNgene,Justus Atuti,Akide Professionals Association,PWD Professionals Association,TCSC(Turkana Civil Society Consortium),Lochwaa Community Land Management Committee,and Sammy Sisungo,PublicParticipants Magongo Stadium in Mombasa,raised concerns on:publicparticipation wasnot goingto bemeaningful due to compressed timelines, lackofaccessibleformats oftheagreements and thefield developmentplan,dissenting voiceswould beignored,key documentswerenotdisclosedinadvance and therewas insufficientopportunity for stakeholders to fully consider theProduction Sharing ContractsandtheFieldDevelopmentPlan.

TheJointCommitteeanalysedthesubmissionsandthelawandobservedthatpursuant totheprovisionsofArticle118oftheConstitutionandSection31(3)ofthePetroleum ActCap.308,theJointCommitteewasrequiredtofacilitatepublicparticipationand makeappropriaterecommendationstotheHousesontheFieldDevelopmentPlanand Production Sharing Contracts.Accordingly,an advertisement was placed in newspapersonSaturday,29hNovember2025by theNationalAssemblyandon Thursday.18hDecember2025bytheSenatenotifyingmembersofthepublicthat there wouldbepublicparticipationontheFieldDevelopmentPlan andProductionSharing Contracts.TheJointCommitteereceivedmemorandabetveenMonday22ndDecember 2025andFriday,16hJanuary2026.Thereafter,theJointCommitteeidentifiedand heldpublichearingsbetween12hJanuaryand6hFebruary,2026insix(6)counties thatareexpectedtoexperiencedirectandsignificantimpactsfromtheimplementation oftheSouthLokicharBasinFieldDevelopmentPlan(FDP)andtheassociated Production Sharing Contracts (PSCs),namely:Turkana,West Pokot,Uasin Gishu, TransNzoia,LamuandMombasaCounties.

Further lotheforegoing,on9thFebruary2026,theCommitteereceivedsubmissions from petroleum experts drawn from the upstream,midstream and downstream segments of the industry.aswell as academicians,engineers andpolicy specialists.A delailed scheduleoftheexpertsis attachedto thisReport as Annex9.

Additionally,duringarelreatheldattheHiltonGardenInnfrom9thto16thFebruary 2026,theCommitleereceivedpresentationsandsubmissionsontheFieldDevelopment Plan(FDP)and the Production Sharing Contracts(PSCs)from key stakeholders, includingtheMinistryofEnergyandPetroleum;theNationalTreasuryandEconomic Planning:theMinistryofInteriorandNationalAdministration;theMinistryofRoads andTransport:theOfficeoftheAttorneyGeneral;theMinistryofLands,PublicWorks, HousingandUrbanDevelopment;theMinistryofWater,Sanitation andIrrigation;the MinistryofEnvironment,ClimateChange andForestry:theKenyaRevenueAuthority; theCentral BankofKenya;theOffice oftheAuditor-General;theNationalLands Commission;theNational Environmental ManagementAuthority;theKenyaLaw ReformCommission;theBusinessRegistrationService;and GulfEnergyBV.

TheJoint Committeeobserved that section31(2)and(3)of thePetroleum Act,Cap. 308providesthatParliamentmusteitherratifyorrefusetoratifytheproduction sharingcontractandthefielddevelopmentplanafterreceivingthedocumentsfromthe CabinetSecretary withinsixty days.Moreover,Parliament mustconductpublic participationwithinthesixtydaysdesignatedundersection31(2).

Inthecircumstances,theJointCommitteeobservedthatcontrarytothesubmissions, publicparticipationwasmeaningfulwithinthecompressedtimelinesprovidedunder section31(2)ofthePetroleumAct.

Procedural Sequence

• 3.TheJointCommitteenoted thatsubmissionsfromLochwaaCLMC,TCSC,theCounty GovernmentofTurkanaandJustusAtutiraisedconcerns that ratificationwas premature,there wasrelianceon legacy EsIA,therewas an unclear approval sequence, there was lack of due diligence disclosure,and approvalbefore full community sensitizationofthecontentsofthetheFieldDevelopmentPlanandtheProduction Sharing Contracts.

4. TheJointCommitteenotedthatsubmissionsfromKenyaNationalHighwaysAuthority submittinginTransNzoia raised concerns thatexistingroads arenarrow for heavy project trucks and narrow roads may increase accident risk.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatsections30 and31ofthePetroleumActprovidethataFieldDevelopmentPlanmistbereviewed byEPRAandapprovedbytheCabinetSecretarybeforebeingsubmittedtoParliament togetherwiththeProductionSharingContractsforratification,andthatnoproduction orexploitationrightsmaybeexerciseduntilParliamentcompletestheratification process.AlsotheESIAwaspassedfromTullowtoGulf Energypursuant tosection128 (2)ofthePetroleumAct(savingsand transition)

DisclosureofPsCAmendments

• 5.The Joint Committeenoted that submissions from Sammy Sisungo,Islim Shikunyi Imran,Miriam Osogo,CentrinaNgene,Justus Atuti,TransNzoiaTurkana Community Diaspora and County Government of Turkana raisedconcernsrelating to transparency, particularlythelimiteddisclosure ofamendmentsto theProductionSharingContracts, includingchangestocostrecoveryceilings,capitalexpenditure definitions,and altered or deleted clauses,including increase ofrecoverable cost from 55% to 85%, reclassification of operationalcostsas capital expenditure,lack of disclosure of amendmentsandlackofclarityonselectionofGulfEnergywhichconstrainedeffective parliamentaryandpublicscrutiny.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatamendments totheProductionSharingContractswereincorporatedinaccordancewiththeterms oftheoriginalProductionSharingContractssignedon17ihSeptember2008and compliedwiththerequirementsofsection9ofthePetroleum(Explorationand Production)Act,Cap.308andsavedundersection128(2)(a)and(f)ofthePetroleum Act,2019.

OwnershipandControl

• 6.TheJoint Committeenoted thatsubmissionsSammySisungo,IslimShikunyiImran, Miriam Osogo;Centrina Ngene,Justus Atuti,and Turkana CouncilofEldersraised concernsrelatingtorapidchangesinownershipandcontrol oftheoperatingcompany, with concerns thatinsufficient disclosure ofbeneficialownership may expose the agreementstogovernance,integrity,andcompliancerisksunderKenyanlaw.

TheJointCommitteeanalysed thesubmissions,thelaw andobserved thaton24th November,2025,theGovernmentoftheRepublicofKenyasignedanaddendumwith GulfEnergyE&PBV.OnJuly21,2025,TullowOverseasHoldingBV,awhollyowned subsidiaryofTullowOilplc(Tullow)andAuronEnergyE&PLimited,anaffiliateof GulfEnergyLimited(GEL),signeda saleandpurchaseagreementforthepurchaseof TullowKenya B.V.(TKBV).Theeffectofthe transactionwas that Tullow Overseas HoldingsBVgave thesubsidiaryGulfEnergyE&PBVa100%interestineachofthe saidBlock10BBandBlock13TPSCs.GulfEnergyE&PBVholdsa100%interestin eachofthesaidBlock10BBandBlock13TPSCs.

CompulsoryLandAcquisition

• 7.TheJoint Committee noted that submissions from Turkana Host Community,Maj.Dr. Ekiru Kidalio,Kapese CLMC,Nakukulas & Kapese CLMC,Turkana Council of Elders,AkideProfessionals Association,MembersofUasin Gishu Civil Society,Mr. Yahya Mohamed (Lamu),Mr.Ahmed Famau (Lamu),Ms. Amina Amina Hamisi(Lamu),Ms.Angelina Ndusya(Lamu),Mr.Mohamed Rajab(Lamu),and Ms. Magdaline Njeri (Lamu) expressed concernsrelating to land access and tenure issues featuredprominently,withconcerns thatrelianceon compulsory landacquisitionfor petroleumactivities mayconflictwith thelegaldistinctionbetween acquisitionfor public purpose and commercial resource development,objected to compulsory acquisitionforbusiness use,preferencefor leasemodel,permanent loss of communal land,inadequatecompensationanddisruptionofpastorallivelihoods.

TheJointCommitieeanalysedthesubmissions,thelaw andobservedthatsection116 ofthePetroleumActcontainsdetailedprovisionsregulatingcompulsoryacquisition andprolectstherightsofanowneroranoccupierbyprovidingthatwherethe contraclor orlicenseefailstopaycompensationwhendemanded,orif theowneror occupierisdissatisfiedwiththeamountofcompensationofferedtohim,theowneror occupiermay,withinsixmonthsofthedateonwhichthedemandorofferismade,take proceedingsbeforeacourtofcompetentjurisdictionforthedeterminationand recoveryofcompensation.

CommunityLandRegistration

• 8.The Joint Committee noted that submissions from County Government of Turkana, Maj.Dr.Ekiru Kidalio and the Local Community submittingin Turkanaraised concern that uncertainty exists regarding the registration status of community landwithin the exacerbatingtherisktocommunitylandduetoweakimplementationofCommunity LandAct,and theneedforregistration andprotectionofgrazingcorridors.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatthatsection 108ofthePetroleumActrecognisescommunitylandandprovidesforcompensation processesremaingovernedbyland lawsanddonotinvalidatepetroleumapprovals grantedundernationallegislation.

Inaddition,theJoint Committeeobservedthat contrary to thesubmissionthat the projectpossesarisklocommunitylandduetoweakimplementationofCommunity LandAct,section116(2)ofthePetroleumActprovidesthatwhereacontractoror licenseeintendstoenteruponanylandforthepurposesofconductingpetroleum operations,accesstosuchlandsshallbegovernedpursuanttotheprovisionsofthe Constitutionandtherelevantlandlaws.

LandValuation

• 9.TheJointCommitteenotedthatsubmissionsfromAkideProfessionalsAssociation, Turkana Council of Elders,and Nakukulas & Kapese CLMC,expressed concerns whetherexistinglandvaluationframeworksadequatelyreflectthelegal,economic,and livelihoodvalueofpastoral andcommunalland,includinggrazingcorridorsandwater access,therebyincreasing theriskofcompensationdisputes,whether Compensation basedon marketvalue not livelihoodvalue,lackofculturallyinformedvaluation,and no clarity on payment mechanisms.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatsection116 ofthePetroleumActcontainsdetailedprovisionsregulatingcompulsoryacquisition andprotectstherightsofanowneroranoccupierbyprovidingthatwheretheowner oroccupierisdissatisfiedwiththeamountofcompensationofferedtohimtheowner oroccupiermay,withinsixmonthsofthedateonwhichthedemandorofferismade, takeproceedingsbeforeacourtofcompetentjurisdictionforthedeterminationand

BenefitSharing

• 10.TheJointCommitteeobserved thatsubmissionsfromVillageElderFrancisAlenyon, Turkana Council ofElders,AkideProfessionalsAssociation,CountyGovernmentof Turkana, Centrina Ngene,Ms.Basra Ahmed (Lamu),Mr.Badi Nasiri (Lamu) and NorthRift WaterWorksDevelopmentAgencysubmitting in WestPokot,raised concerns,regarding the clarity and enforceability of statutory benefit-sharing arrangements,particularlyonhowcommunityandcounty shareswouldbecalculated, managed,andsafeguarded throughlegallyrecognisedgovernancestructures,5percent communityshareexcludesWestPokotCountyandwomenshouldbenefitfromproject opportunities.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatsection58as readwithsection127(aa)ofthePetroleumAct,establishesastatutoryframeworkfor revenue sharingbetweenthenationalgovernment,county governments,and local communities,providesthattheCabinetsSecretaryresponsibleforpetroleumshall enactregulationstogoverntheinterestsoftheCountyGovernmentsandlocal communitieswhereupstreampetroleumoperationsarebeingconducted,and.that Parliamentshallreviewthepercentagesunderthissectionwithintenyears.

AdministrationofCommunityRevenues

• 11.TheJointCommitteenoted thatsubmissionsfromTurkanaHost Community,Maj.Dr. EkiruKidalio,Turkana CouncilofElders,CountyGovernmentofTurkana andNorth RiftWaterWorksDevelopmentAgencysubmittinginWestPokotexpressedconcern ontheabsenceofaclearlydefinedlegalframeworkfortheadministrationof community petroleumrevenues,creatingrisksofmismanagement,elitecapture,and accountability disputes,there beingno clear legal structure forreceiving andmanaging funds,theneedforaproposalforHostCommunityDevelopmentTrustFundandlack oftheframeworktoenablecountiestoagreeonsharingofbenefits.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatsection58as readwithsection127(aa)ofthePetroleumAct,establishesastatutoryframeworkfor revenuesharing between thenational government,county governments,and local communities,provides thatthe Cabinets Secretary responsibleforpetroleum shall enactregulationstogoverntheinterestsoftheCountyGovernmentsandlocal communitieswhereupstreampetroleumoperationsarebeingconducted.

LocalContent

• 12.TheJoint Committee noted thatsubmissions from GovernorAbdullswamad Sheriff Nassir from Mombasa County,Sammy Sisungo,Islim Shikunyi Imran,Miriam Osogo, Centrina Ngene,Justus Atuti,TUCODTA,Aroo Drivers Association,PWD Professionals Association,Nakukulas & Kapese CLMC,County Government of Turkana,Akide Professionals Association,Mr. Cyrus Letting ((Uasin Gishu ),Mr. Barno(Uasin Gishu),Mr.Korir Kennedy,(Uasin Gishu),Mr.Korir Kiprono (Uasin Gishu),Ms.Salama Shafii(Lamu),Ms.Amina Amina Hamisi(Lamu),Ms.Angelina Ndusya (Lamu),Ms.Basra Ahmed(Lamu),and Mr.Badi Nasiri (Lamu) relayed concernson:theenforceability oflocal contentobligationsunder theProduction Sharing Contracts and theFieldDevelopmentPlan,with concerns thatexemptions and broadly framed provisionsmayundermine compliance with thePetroleum Act and related legislation,including,exemption from local content laws,lack of binding quotas,low local employment,weak procurement transparency,and,theneed for a trainingfundandanimplementationplan.

TheJointCommitteeanalysed thesubmissions,thelaw andobserved thatsections50, 51and 52ofthe PetroleumActimpose mandatory localcontent,training,and lechnologytransferobligations,whicharemonitoredandenforcedbytherelevant authoritiesindependentlyofparliamentaryratification.In addition,the Joint CommitteeobservedthattherewasaLocalContentPlan(LCP)attachedasAppendix F.Section19oftheFieldDevelopmentPlanfortheSouthLokicharFieldDevelopment Plan.TheLCPispreparedinaccordanceviththerequirementsofthePetroleumAct (2019).ThisLCPsetsout theprinciples,framework,andimplementationmechanisms thatwillguidetheintegrationoflocalcontentthroughout thelifecycleoftheProject. Itoutlinesan approachtocreatingopportunitiesforKenyanparticipationwhile andinternationalindustrystandards.

Nationaiand CountyLaws

• 13.The Joint Committee observed that submissions from the County Government of Turkana,Justus Atuti;Centrina Ngene,and Sammy Sisungo outlined concerns on: potential inconsistencieswere identifiedbetweennational petroleum instruments and standardsandinstitutional mandates,questionedlegalityofPsCAddendum,observed the needtoalignwith Constitutionand Petroleum Act,noted that the countyis sidelinedinoversightandtheisneedforcompliancewithprocurementlaw.

TheJoiniCommilteeanalysedthesubmissions.thelawandobserved thatpetroleum operationsaregovernedbynationallegislationpursuanttoArticle7lofthe Constitution,andanyconflictwithcountylegislationisresolvedthroughconstitutional hierarchyandintergovernmentalcoordinationmechanismsunderArticle191ofthe Constitution.Furthermore,TheJoint Committeeanalysed thesubmissions,thelawand observedthatsection127(aa)ofthePetroleumActprovidesthattheCabinetSecretary responsibleforpetroleumshallenactregulationstogoverntheinterestsoftheCounty Governmentsand localcommunitieswhereupstreampetroleumoperationsarebeing conducted.

EnvironmentalCompliance

• 14.TheJointCommitteenoted that submissions from Nakukulas&Kapese CLMC, LochwaaCLMC,theCountyGovernmentofTurkana,AkideProfessionalsAssociation the Turkana Council ofElders,Mr.Cyrus Letting(Uasin Gishu),Mr.Barno(Uasin Gishu),Mr.Korir Kennedy,(Uasin Gishu),Mr.Korir Kiprono (Uasin Gishu)Mr. Yahya Mohamed (Lamu), Mr.Mohamed Rajab (Lamu),highlighted serious environmental compliance concerns,includingwhether existingEnvironmental and Social ImpactAssessmentsadequately address cumulativeimpacts,hazardous waste management, water contamination risks,gas flaring, and unresolved legacy environmentalliabilities.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthat environmental licensingandcompliancearegovernedbyEMCAandadministeredby NEMA,andthatanESIAlicencehasbeenissuedfortheprojectinaccordancewith whereprojectdesigns change.Inaddition,theJointCommitteenoted that under Chapter10.1oftheFieldDevelopmentPlancontainsastatementindicatingthatan environmentalandsocialimpactassessment(ESIA)reporthasbeenpreparedtomeet therequirements ofthe Environmental Management and Coordination (Impact AssessmentandAudit)Regulations(2003,asamended).Inaddition,theProjecthas

AccesstoEnvironmentalInformation

• 15.TheJointCommitteenoted thatsubmissionsfromTransNzoiaTurkanaCommunity Diaspora,Lochwaa CLMC,Akide Professionals Association,PWD Professionals Association,CentrinaNgene andBrianKipchumbaMaiyoraisedconcernson:thelegal adequacyofenvironmentalsafeguardsintheabsenceofupdated,publiclyaccessible environmentalassessmentsandindependentmonitoringmechanisms,the ESiA not being publicly disclosed,the lack of accessible formats of documents,no public emissionsreporting,andEnvironmentalSocialManagementPlannotshared

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatthepublic andstakeholderscanaccessenvironmentalinformationandcompliancemonitoringby accessingtheFieldDevelopmentPlanthatcontainsinformationunderChapter9of theEnvironmental&SocialManagementPlan(ESMP)forimplementationofESIA commitmentsandmitigationsfortheupstreamprojectcomponent.

Decommissioning

• 16.TheJointCommitteeobservedthatthesubmissionsfromstakeholdersfromTrans Nzoia County,Lochwaa CLMC,Nakukulas & Kapese CLMC,and the County Government of Turkana raised concerns on:absence of clearlysecured decommissioning,rehabilitation,andlandrestoration arrangementsthatpresents alegal riskregarding long-term environmental liability,no ring-fenced decommissioning fund,and,norestorationguarantee and ecological debtshiftedtofuturegenerations.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatsection39of thePetroleumActprovidesthatacontractorshallsubmitafielddecommissioningplan totheAuthoritybeforeaproductionpermittoinstallandoperatethefacilitiesisissured. Section32ofthePetroleumActprovidesthatacontractorshallsubmilafield decommissioningplantotheAuthoritybeforeaproductionpermittoinstall andoperate thefacilitiesisissuedafterafielddevelopmentplanisapprovedbytheCabinet Secretary.Consequently,a decommissioningplanisnotrequiredatthepoint of ralifyingafield developmentplanundersection30ofthePetroleumAct.

GasManagement

• 17.TheJoint Committccobscrved that submissionsfrom the CountyGovernmentof Lamu, Nakukulas&Kapese CLMC,County GovernmentofTurkana,and Turkana Council of Eldersraised concernsregarding the lack of clear legal provisions ongas ownership, quantification,utilisation,flaringcontrols,no zeroroutine flaringcommitment,nogas reinjection or gas to power plan,and,no emissions baseline data within the Field DevelopmentPlan.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatsections 34(Naturalgas)and62(Ventingandflaringofoilandnaturalgas)ofthePetroleum Aclregulatenaturalgasutilisation andrestrictflaringexceptwithapproval,with regulatoryoversightvestedinEPRAand theCabinetSecretary.Further,Chapter9of theFieldDevelopmentPlanincludesanEnvironmental&SocialManagementPlan (ESMP),theEmergencyPreparednessandResponsePlan,ProcurementProcedureto ensurethalprocurementofequipment,materials,chemicalsandservices(including labour)meet the Operator's environmental and social requirements,and the EnvironmentalIncidentReportingProcedurethalensuresthatallnon-conformances, incidentsandnearmissesmustbeinvestigatedtoa levelcommensuratewith the polentialriskoroulcome,toincludelessonslearntandimprovementrecommendations.

Climate Obligations

• 18.The Committee noted that submissions from Lochwaa CLMC,Nakukulas&Kapese CLMC,County and the Government ofTurkana raised concerns climate-related legal obligations werenotclearly articulated as bindingrequirements within theField DevelopmentPlan.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatpetroleum operalionsremain subjecttonationalclimateandenvironmentallaws,andthe PetroleumActdoesnotrequireseparateclimateinstrumentsasapreconditionfor ratificalion under seclion30 ofthePetroleum Act,Cap.308

Transparency and Reporting

• 19.The Joint Committee observed submissions from Sammy Sisungo,Justus Atuti, Centrina Ngene,County Government ofTurkana,TransNzoia Turkana Community Diaspora and Turkana Council of Elders raised concerns that oversight and accountability mechanisms,including independent metering and public access to production data,no disclosure offiscal terms,no revenue reporting clarity,lackof independent oversight,andneedforpublication of key documents wereperceived as insufficientlydefined.

TheJointCommieeanalysedthesubmissions,thelawandobservedthatsection119 ofthePetroleumActprovidesthattheCabinetSecretaryshalldevelopaframeworkfor reporting,transparencyandaccountabilityintheupstreampetroleumsector,which includesthepublicationofall petroleum agreements,records,annual accounts and reports ofrevenues.fees,taxes,royalties and other charges,as well as,any other relevantdata andinformation thatsupportpaymentsmadebythecontractor and payments received by the national government,county governments and local communities. Consequently,a framework for reporting,transparency and accountabilityintheupstreampetroleumsectorisnotrequiredatthepointofratifying afielddevelopmentplanundersection30ofthePetroleumAct.

GrievanceRedress

• 20.TheJointCommitteenotedfromthesubmissionsoftheKenyaNationalChamberof Commerce and Industry,Nakukulas & Kapese CLMC,PWD Professionals Association,Aroo Drivers Association,Trans Nzoia Turkana Community Diaspora, Mr.YahyaMohamed(Lamu),and,AkideProfessionals Association concerns that there isnoindependentgrievancemechanism,thereislackofcommunityoversightandthere isneed for accessible and structured disputeresolution system and the absenceof clearlyestablishedgrievanceredress anddisputeresolutionmechanisms accessibleto affectedcommunitiesraiseslegalrisks.

TheJointCommitteeanalysedthesubmissions,thelawandobservedthatsection117 ofthePetroleumActprovidesthatalldisputesbetweenpartiestoapetroleum agreementarisingfromupstreampetroleumoperationsshallberesolvedthrough alternativedisputeresolutionmechanismsinthefirstinstanceasmaybeprovided for inby thepetroleumagreement,otherdisputesarisingfromanupstreamregulated functionunderthisActshallbereferredtotheEPRAfordeterminationinthefirst instance,and,anypersonwhoisdissatisfiedwiththedecisionoftheAuthorilyoras providedbytheAgreement,mayappealtotheTribunal.FurthertheFielddevelopment Planin10.9providesforaStakeholderEngagement&GrievanceManagementanda

DelimitationofBoundaries

• 21.TheJointCommitteenotedfrom thesubmissionsthattherewereconcernsthatsince thediscoveryofoilinTurkana,administrativeboundarieswithinthecountyhavebeen reviewed,including the creation or reconfiguration of sub-counties.This creates a seriousissueforrevenuesharingbecausethePetroleumActtiesentitlementspecifically tosub-countyboundaries.TheJointCommitteeobservedthatthedefinitionoflocal communityunderthePetroleumActmeansapeoplelivinginasub-countywithinwhich apetroleumresourceunderthisActissituatedandareaffectedbytheexploitationof thatpetroleumresource.Furthersection127taskstheCabinetSecretaryresponsible forPetroleum tomakeregulationstogovern theinterestsof theCountyGovernments andlocalcommunitieswhereupstreampetroleumoperationsarebeingconducted.In thiscase,issuesdealingwithsharerevenuetolocalcommunitiesoughttobeconsidered underregulations.

Inthealternative,theJointCommitteeobservedthattheNationalGovernment CoordinationAct,Cap.127recognisestheconstituencyasanationalgovernment servicedeliveryunit.Section14oftheActprovides"alltheconstituenciesestablished underArticle89oftheConstitutionareherebyrecognizedandestablishedasnational government servicedelivery units."Inthiscase,thePetroleumAct,Cap.308may be amendedinthedefinitionoflocalcommunitytomean apeoplelivinginaconstituency withinwhichapetroleumresourceunderthisActissituatedandareaffectedbythe exploitationofthatpetroleumresource.Theproposedamendmentwillprovide certaintyofthepersonswhoaretobenefitfromthepetroleumresource.

ConstitutionoftheNationalLandCommission

• 22.TheJointCommitteenotedfrom thesubmissionsoftheSecretariatoftheNational Land CommissionwasyettobeconstitutedastheCommissionerswereyettobeappointed

inOffice.TheSecretariatoftheNational LandCommissionsubmittedthatallbudgets and expenditure thatrelate tocompensationof project affected personswere approved beforetheterminationof the term of theprevious Commission and theSecretariat to the Commissionwas in a position to implement all programmesrelating to implementation of thecompensationofprojectaffectedpersonsby theimplementation oftheFieldDevelopmentPlan.

• 6.2Observationsfrom theAnalysisoftheFieldDevclopmentPlan and Production SharingContractsandSubmissionsfromStakcholders
• 23.Petroleum Development and the PSCFramework:The Joint Committee observed that the development of the petroleum resources,especiallyin the Lokichar Basin, presentsastrategicopportunity for the Country toutilize opportunitiesin theoiland gassector and diversify the country'seconomy.TheJoint Committeefurther noted that previouseffortstosecuredevelopmentpartnerswere notsuccessfulduetovarious factors,mainly on account offinancing availability andresource dynamics.Moreover, under the Production Sharing Contract (PSC) framework,the State maintains its ownershipoftheresource andprovidesstewardshipofthepetroleumresources,while the Contractorwill provide thenecessarycapital andtechnical capacity toenable and facilitatecommercialproduction.
• 24.TheProjected Oil ProductionProfile:TheJoint Committee observed that theField Development Plan(FDP) proposes a phased production profilecomprisingatwo-phase development approach,withPhase1covering theperiod2026to2031andPhaseII spanning2032to2050.Peakcrudeoilproductionisprojected at approximately20,000 barrels per day during Phase I and50,0oo barrels per day duringPhaseI1.The Joint Committeefurther noted that theproduction levelswill bemaintainedat about30,000 barrelsperdayfrom2042towardstheremainderofthelicenceperiod.Withregardsto recoverable oil resources,the Joint Committee observed that the Stock Tank Oil InitiallyinPlace(STOlIP)hasbeenestimated atarangeof1,192-1,952-3,419million stock tankbarrels(MMstb),with an estimatedrecoveryof326million stock tank barrels(MMstb) over theproject life,with other scenariosindicating higherrecoverable possibilities.
• 25.Production Faeilities and Related Costs: To achieve the projected production volumes, the Joint Committee observed that the Contractor intends to deploy Eariy ProductionFacilities in the initialyearofoperations,thatis,2026,within theLokichar Basin (Ngamia and Amosing oil fields) to realise first oil.This will subsequentlybe followedbytheestablishmentofaCentralProcessingFacilityin2032tosupport increasedproductionduringPhaseIl.TheCommitteefurthernoted thattheestimated Capital Expenditure(CAPEX)amounts to approximately KShs35.28billion(USD 271.40 million) inPhase I, rising significantly to about KShs 717.94billion(USD 5.52 billion)inPhaseII,resultingina total projected CAPEXofapproximatelyKShs753.22 billion(USD5.79billion).In addition,theprojected Operational Expenditure(OPEX) over the projectlife isestimated atapproximatelyKShs131.86billion USD1.014 billion)inPhase I and KShs 937.56billion(USD 7.212 billion)in PhaseIl,bringing thetotalOPEXtoaboutKShs1.069trillion(USD8.226billion).
• 26.Midstream componentof theprojectand associated costs:TheJoint Committee notedthat themidstreamlogisticsinclude trucking andrail evacuationofcrudeoil. Moreover,the contractorprioritizes truckingbyroadin Phase I,with plans to utilize rail transportationinPhase ll,expected tocommence in2032,strongly signalling the National Government to prioritize extending the rail network to Turkana County,,

• includinglast-milerailconnectionstostorageandexportzones.Inthisregard,theJoint CommitteenotedtheneedfortheNational Governmenttoprioritisethisextensionof therailwayinfrastructuretoLokichar.
• 27.Considerationson theLokichar-Lamu Oil PipelineandRefineryInfrastructure: TheJointCommitteenotedthedecisionoftheGovernmenttoformallydeferthe Lokichar-Lamu Crude Oil Pipelineproject.Thedeferment ispremised on economic viabilityandrequirementsofhigherthroughputvolumesasearlierenvisagedin previousministerial plans.Given thepotential of thepipelinein thefuture,including itscomparativeadvantageinregionalinfrastructure,itremainsamediumtolongterm priority.Ontherefinerycomponent,theJointCommitteewasfurtherinformedthat internationalbenchmarksindicatethatforaninlandrefinerytobecommercially competitive,it wouldrequire highervolumesand theneed tomobilize significant capital.Goingforward,theJointCommitteenotedthepossibilityofprivatesector investmentinrefineryinfrastructure,especiallyinkeySpecial EconomicZoneslike Dongo Kundu in Mombasa,Lamu,and other parts of the Country including the production area.This could further accrue benefits to the country,including employmentopportunitiesthroughvalueaddition incrudeoil production.
• 28.Oil CostRecovery Ceilings and CostRecoveryIncentives:The Joint Committee notedthattheMinistryhadsubmittedaharmonisedcostrecoveryceilingof85%for bothBlocks,upfrom theprevious thresholdsof55%for BlockT6(formerly Block 10BB)and65%forBlockT7(formerlyBlock13T).TheCommitteeobservedthatcost recoveryisacentralcomponentin thenegotiationofProductionSharingContracts (PSCs)withpotential contractors,takingintoaccounttheneedforgovernmentsupport to actualize huge projects in the extractive sector.The costrecovery framework also considers critical fiscal considerations such asrisks inherentin huge projects,national fiscalinterests,andtheneedtoattractprivatesectorandforeigninvestmentforcapitalwhencompared tootherprojectsin theextractive sectorlikegoldmining.TheJoint bankability,particularly for debt-financedprojects,reflect thehigh-risknatureofthe investiment,andthecostrecoverylimitasproposedwillbeconsistentwithinternational bestpracticeswhereothercountrieshaveapplied andsuccessfullyimplementedoiland gas projects.In addition, the Joint Committee noted that a robust cost audit and verificationframeworkisequallyimportant.Inthisregard,theCommittee emphasised theneedtoguard againstpotential inflationofcapital expenditure(goldplating)and ineligibleorunnecessarycoststoprotect theGovernment'sfiscal interests.
• 29.Comparative CostRecovery Ceilingsand Project Competitiveness:The Committee observedthatcostrecoveryceilingsonacomparativebasisvary acrossjurisdictions, with examples including Niger(70%),Angola and Cameroon (85%),and Ghana (100%).Inrelationtothecostrecoveryframework,theCommitteeobservedthatthe FDPprovidesfor therecoveryofvariouscostcategoriesasagreedbytheparties as follows:production costs,development costs,exploration and appraisal costs,and decommissioningcosts,amongothers,asprovided in thePsCs.
• 30.ProjectEconomicsand RevenueSharing:TheJoint Committeeobserved that pursuanttoSection57(1)ofthePetroleum Act,2019,profits derivedfrom upstream petroleum operationsaretobe sharedbetween theContractorand theNational Governmentinaccordancewiththeapplicablepetroleumagreement.Inthiscase,the shareofoilprofitbetweenthegovernmentandtheContractorisproposedtobeona

50/50percentsharingbasisatbetween0and20,000barrelsofoilperdayand60/40 percentsharingbasisinfavourofthegovernmentatbetween20,001and50,000daily productionlevels.Thissharingframeworkincreasesthegovernment'sshare to70% uponproductionlevelsreachingabove100,000andsubsequentlyto75%above 150,0oo dailyproduction levels.Inrespectto theshareof theNational Government, section58providesforthedistributionoftheprofitsasfollows:75%fortheNational Government,20%fortheCountyGovernment,and5%forthelocalcommunity

• 31.Further,theJoint Committee noted that the estimatedgross revenue projectionsover theproject life amount toapproximatelyKShs2.32trillion(USD17.84billion),subject to crude oil productionperformance,including thepossibility of highervolumesbeing achieved during thelifeoftheproject.Of thisamount,thecostofoil andtransportation costs areestimated atapproximatelyKShs 1.27 trillion(USD9.79billion)andKShs 821.10 billion(USD 6.32billion),respectively.Consequently,theresultingprofit oilis to be shared among thepartiesin accordancewith thePSCs.Moreover,the Committee observedthattheseprojections areunderpinnedbyasetofkey assumptions,including factoringintheforeignexchangerateof USD1toKShs130,anoil pricebenchmark ofUSD60perbarrelwith a crudequality discountofUSD3.5perbarrelreferenced to the Brent index,and zero cost inflation per annum,among others.In this regard,the Joint Committeenotedwithcautionthatexchangeratevolatilitypresentsamaterialrisk which,ifnot properly managed,couldsignificantly affectoverall projectrevenues and theGovernment'sfiscalreturns.
• 32.IndirectRevenues and Related Commercial Arrangements:In addition to direct petroleumrevenues,theJoint Committeenoted that thecountry isexpected tobenefit from indirect revenues arising from midstream,logistics,and export-related services. Inparticular,theJoint CommitteeobservedthatKenyaPetroleumRefineriesLimited isprojected toearn approximatelyKShs42.3billion(USD325million)fromcrudeoil storage and handling services,whileKenya Ports Authority is expected to generate approximatelyKShs41.9billion(USD322million)throughoperationsassociatedwith theNewKipevuOil Jetty.TheJointCommitteefurtherobservedthatadditionalfiscal benefits are anticipated through increased revenues from electricityand water consumption,auxiliary services,and Road MaintenanceLevy collections linked to project logisticsandoperations.

Moreover,theNationalTreasuryestimates thatabout34%ofthe total project Capital Expenditure(CAPEX)ofUSD5.794billion(orapproximatelyKSh753.22billion)and 93%of theestimatedprojectOperatingExpenditure(OPEX)ofUSD8.226billion(or approximatelyKSh1.069trillion)isexpectedtobespentlocally.Inadditiontocapital investments,projectoperations areanticipated togenerate over3,0o0 direct,indirect, andinduced employment opportunities over theproject life cycle.Communities along the project corridorwill alsobenefitfromimprovedmarket access,infrastructure,and local business growth.The project's progression will open Kenya to increased foreign dircctinvestmcnt intheoil andgasvaluechainfrom international players.

• 33.Fiscal Concessionsand TaxIncentives:TheJoint Committeeobserved that theField DevelopmentPlan(FDP)andProductionSharing Contracts(PSCs)proposevarious fiscal incentives for the Contractor,including exemptions from Value Added Tax (VAT),Withholding Tax (WHT),Import Declaration Fee (IDF),and Railway Development Levy(RDL).The Joint Committeenoted that the project qualifies for exemptions from the RDLand IDF,as the investment exceeds KShs 5 billion,in accordancewith theSecondSchedule of theMiscellaneousFees and LeviesAct(Cap 469C).TheJointCommitteefurther observed thatpreviousVATexemptions under

BlockT6andBlockT7PSCslapsedinSeptember2018,andtherefore,aGovernment decisionisrequiredtograntorextendVATexemptions.Suchfiscalsupportwould help mitigatefinancingconstraints affectingoil andgasexplorationanddevelopment.The JointCommitteenotedthattheContractorsubmittedthattaxesincreaseoverall developmentcosts,therebyescalatingprojectfinancingcostsandotherexpenditures, which inturnaffectsthedynamicsofrecoverablecosts.

Inthisregard,theJointCommitteeobservedthattheNationalTreasuryestimatedthe quantum amountof fiscal concessions soughtunder the FDPis approximatelyKShs 46.67billion,coveringupstreamVAT,WithholdingTax,RailwayDevelopmentLevy, andimportduty.Withregardstowithholdingtax,theNational Treasuryindicatedthat itisnotafinaltaxandismeanttoenhancecomplianceandimprovevisibilitywith expectedreformstostreamlineitsapplicationandefficacyfromacompliance perspective.TheKenyaRevenueAuthority(KRA) submitted thatit doesnotobject to eligibleexemptions,howeverKRAemphasizedthatsuchexemptionregimesshouldbe donein accordancewith theapplicable taxlawsand withaview to enhancing transparency.

TheJointCommitteeobserved that therewasaneedtoanchorinlawthefiscal incentives and concessions necessary to catalyze the Project and realize its implementation.TheFDPseekstoexempttheoperatorfromtheapplicationofvalue fee.However,theseincentivesshouldbeincorporatedwithin appropriatelegislation,to provideacriteriaforeligibility,auditability,and enforceability,inordertosafeguard revenueintegrityandensure thatfiscalmeasuresoperatepredictablyandsupportthe project'sbankability.The Joint Committee furtherobserved that incentives sought undertheFDPinclude:ZeroratingofVATon all theinputsrelated totheprojectwith respecttogoods andservicestobeprocuredbyprovidingthatzeroratingappliesacross thevaluechainfromextractionofoiltoexportationoftheoil;exemptionsfromother leviessuchascustoms duty,RDL,IDF,andstamp duty,thatwill furtherincentivize theprojectbyreducingthecostofimportingcritical machineryandotheritemsrequired fortheproject;andexemptionfromwithholdingtaxfrom all servicesandexemption fromwithholdingtaxoninterestondebtfunding,thatwillensurethatprocurementof technicalandimportedserviceswillbeaffordableandnotingthatexemptionfrom withholdingtaxoninterestonborrowingwillmakeitpossiblefortheprojecttosecure fundingthatisaffordable.

• 34.TheJointCommitteeobservedthattherewasneedtosecuretheincentivesoutlined aboveandinadditiontoconsiderenactmentofalegislationwithaframeworkthatis similartotheestablishmentandoperationofaSpecialEconomicZone,onthebasis that, the frameworkundera Special EconomicZone providesarange offiscal incentivesthatarecriticaltothesuccessoftheproject,includingexemptionsfrom customs duties and value added tax,reduced taxes on corporateincome,lower withholdingtaxeson therepatriationofincomeand1oo%investmentdeductionon capitalexpenditurethatisqualified.TheJointCommitteefurtherobservesthatthe andearningsfortheeconomythrougheithercrudeoilexportsorimportsubstitutionof refinedproductintheeventarefineryisconstructed.Governmentpolicyhasalways been to spurexport throughvarioustaxandpolicyincentivesand therefore the incentivessoughtbytheprojectareneithernovelorexceptionalforanexport-oriented project.Suchincentive exist in theSpecial EconomicZonesframework.

• 35.The Joint Committee observed that there were submissions seeking targeted amendmentsto addressgapswithin theSpecial EconomicZonesframework.First,the JointCommitteenotedfrom submissions that therewasaninconsistencybetween the definitionofcompanyunder Section2and therequirement underSections28and29 that adeveloper,operator,orenterprisebeincorporated inKenya.TheJoint Committee observed that therewas a proposal to amendSections28(a)and29(2)(a)toallowa companyincorporatedorregisteredunder anylawinKenyatoqualifyand toclarify that an existingcompany that isincorporated orregistered maybelicensed if it meets eligibility criteria that wasprogressive.Second,the Joint Committeenoted from submissions that fiscal incentives such as VAT zero rating apply only to SEZ enterpriseswhilethereisnoincentiveforadeveloperwhomayundertakeenterprise typeactivitics undertheprojectstructure.The Joint Committeeobserved that the proposal toinserta newSection29(3) toallowaDeveloperor Operatortoapplyfor an SEZ Enterprise license within the same zone was progressive.Third, the Joint Committee noted from the submissions thatoiland gaszones are not expressly recognisedunderSection4(6)oftheAct.The JointCommitteeobserved thatthe proposal toamendthat section toinclude upstream,midstream,and downstream petroleumoperationsandrelatedactivities as designatedSEZcategorieswouldpermit petroleum tocontributetothe agendaofindustrializationofKenya.
• 36.Crude Oil Evacuation Strategy and Road Infrastructure Readiness:The Joint CommitteeobservedthattheFDPproposes theexport ofcrude oil viaroad trucking to KenyaPetroleumRefineriesLimitedinMombasa duringPhaseI,utilising the currently proposedusable routecovering a distanceofapproximately1,104kilometres.This routeruns from thewell padsinLokicharthroughKitale,Eldoret,Nakuru,Nairobi,and on toMombasa,withapproximately75percentof theroute comprisingClassAroads underthemanagement ofKenyaNational HighwaysAuthority,whichcarrysignificant trafficvolumes.

TheCommitteefurtherobservedthattherearetwopotentialalternativeroutes,namely, theAmosing-Lokori-Kapedo-Kinyang-Marigat-Mogotio-Nakuru-Mombasa; andAmosing-Lokichar-Marich Pass-Sigor-Kinyang-Eldoret-Nakuru-Nairobi -Mombasa.In comparison to the current usableroute,these alternative routes may saveadistanceof129KMs and47KMs,respectively

Comparatively,the Ministry ofRoads andTransport also submitted two practical road cvacuationscenarios withsimilarroutesproposed in theFDP,suchas the currentusable routeasoneof theoptions.Theotherscenariois theLokichar-Barpelo/MarichPass /Baringo axis-Nakuru-Nairobi-Mombasa,whichis operationally advantageous for petroleum haulage,with thepotentialtoreduce dependencyonthebusysectionsofthe current usable road,as well as improve regional infrastructure connectivity in the l'egion.

TheJoint Committeenoted that the alternativeroutesrequire significant upgrades to meet safety and operational standards for crude oil transportation,and thus,the preferenceforthe currentusableroute.Inaddition,theMinistryofRoadsandTransport submittedplanstoimprovethestatusof alternativeroutesintheregionat acost of approximatelyKShs26billion,assubmittedby theNationalTreasury

• 37.PetroleumRevenueFund and Governance:TheJoint Committeeobserved thatthe nationalgovernment'sshareofpetroleumrevenuesbeforetheimpositionoftaxesshall be deposited into a dedicated petroleum fund,and managed in accordance with the PublicFinanceManagement Act(Cap.412A).The Committee further noted theneed

for the Cabinet Secretary responsible for Petroleum to fast-track regulations establishing theFund.TheFundshouldprovidefor:thegovernanceframeworkon receiptsofpetroleumproceedsanddisbursementsaccordingtotheoutlinedsharing frameworkbetweentheNationalgovernment,therelevantCountygovernment,andthe localcommunity,andring-fencing ofcounty allocations anduse of the community share,amongothers.Additionally,theJointCommitteenotedthatthereis aneedfor legislativeinterventiontoprovideforapprovals,budgetimplementation,andoversight reporting.

• 38.AuditMechanisms Framework on Recoverable Cost:The law mandates the recoverablecostsincurredbythecontractor asagreedbythepartiesintheProduction SharingContracts.Additionally,theOfficeoftheAuditor-Generalismandatedtoaudit the approvedrecoverablecoststatementssubmitted totheAuditor-GeneralbyEPRA foranextralayerofauditassuranceandriskmitigation.TheCommitteeobservedthat EPRAhasindicated thatcostauditshavebeenundertakenforBlocksT6andT7in 2018forpetroleumcostsincurredintheperiodsfrom2010-2016,in2019forpetroleum costsincurredintheperiodsfrom2017-2018,andin2020forpetroleumcostsincurred intheperiods2019-2020.Additionally,inNovember2020,costauditswereundertaken December2020.Thecommitteefurthernotedthat EPRAhadindicatedthat Contractor's cost recovery statements are audited against the approved Work Programme and Budget,supporting expenditure records,contracts,and quarterly submissionsto ensure compliancewith thePetroleumAgreement and applicable law. Inthisregard,theJoint Committeenoted that thereisneed forEPRAtoprovide comprehensive and timelyauditsduringtheprojectlifecyclewithaviewtoenhance
• 39.StatusoftheEarlyOilPilotScheme(EOPS):TheJointCommitteenotedthatthere wasanEarlyOilPilotSchemethatexportedcrudeoil totheinternationalmarket.The MinistryofEnergyandPetroleumsubmitted thatthevolumeofexportedcrudeoil amounted to 414,777,generating a revenue of USD 28.34million against an expenditureofUSD62.73million,occasioningaloss/balanceofUSD34.39million, formingpartofthecostincurredinexportingtheoilin2019and2022.Theministry indicated havingmet thethresholdoftheunderlyingobjectivesofthepilotphase,which includesmeetingthetechnicalrequirements and thecommercialpotentialofKenyan crudeoil in the internationalmarket.Additionally,the Committeenoted thatin November2020,costauditswereundertakenforexpendituresincurredintheEarlyOil PilotSchemefrom14thMarch2017to31stDecember2020.
• 40.MacroeconomicBenefitsandPotentialRisks:TheJointCommitteenotedthatcrude oilexports arebeneficial to thecountry'smacroeconomicoutcomesbystrengthening the overall balance of payment position,allowing the Central Bank to build up international reserves on account of external dollar receipts,and assistingin stabilization of the exchangerates,amongotherpotential benefits.On the other hand, crudeoilproceedsarebasedona finiteresourceandoftennegativelyaffect less diversifiedeconomiesupondepletion.Italsocarriespotentialriskstoexchangerate dynamicsifnotmanagedwell,negativelyaffectingkey sectorslikeagricultureand manufacturing,aphenomenon commonly known as "Dutch Disease".The Joint Committee noted that structural fiscalrules and frameworks,such as enhancing savings,checkinggovernmentspendingbasedonwell forecastedcommoditypricesby independentexpertcommittees,mayassistandcontributeto lower macroeconomic volatility.

• 41.Government Funded Enablers to support Oil Project and Associated Funding Estimates:The Joint Committee observed that the implementation of the Field DevelopmentPlan(FDP)will require Government-fundedenablers,estimated by the National Treasury at approximately KShs 56.39 billion.These enablers include expenditures on land and land-relatedexpenses(KShs2billion),powerconnectivity (KShs 13.1 billion),water supply (KShs 10 billion),crude oil receipt and export infrastructure at the coast(KShs5.29billion),and road upgrades(KShs 26billion), amongothers.TheJoint Committee noted thatwhilesomeof these interventions are alreadybudgetedorunderdesign,their timelydeliverywillbecriticaltoachievingFirst Oil targets and will require a coordinated multi-agency framework.The Joint Committeenoted thencedforfast-tracking theimplementationoftheenablerstoensure thetimelydeliveryoftheproject
• 42.National Oil Corporation of Kenya (NOCK) Participation:The committee observed that theField DevelopmentPlan(FDP)envisages theparticipation of the National Oil Corporation ofKenya (NOCK),as the Governmentnominee,through a carriedand/orpaidparticipatinginterestof upto20percent inthe unitised development areacoveringBlocksT6and T7.TheCommitteenotedthatNOCK'sparticipationis intended toenhance theState's directinvolvementinupstreampetroleum operations, strengthen nationalcapacity,and secure an additional share ofpetroleum revenues beyondprofitoilandroyalties.In thisregard,theCommitteeemphasizestheurgency offast-tracking therestructuring andinstitutional strengthening ofNOCK to ensure it is adequately equipped to discharge itsresponsibilities effectively and tosafeguard the State's strategic andfinancial interests in theproject.

6.3 ObservationsArisingfromthePublicHearings

Having held public hearings in Turkana,West Pokot,Uasin Gishu,Trans Nzoia,Lamu,and Mombasa Counties,theJoint Committeemade thefollowingobservations highlightcritical issues around Security Concerns,Water Infrastructure,WasteManagement Concerns,Local Content and Procurement Concerns,Environmental Assessment and Safeguards,and Continuous CommunityEngagement:

A.Security Concerns:

• 43.The Joint Committee-received submissions-fromTurkana County Security Committee (Chaired by County Commissioner,Mr. J.M.Kavita,MBS), Members of the Turkana County Asscmbly (led by the Speaker),Public Participants at Ekales Centre,Lodwar, Turkana Council of Elders,Public Participants at Kalemgorok,Turkana South,Public Participants at Lokichar Town,Turkana South,Public Participants at Nakukulas, Turkana East,PublicParticipants at Lopii,Turkana East,PublicParticipants atLokori, TurkanaEast,PublicParticipants at Katilia,Turkana East,County CommissionerLamu County,Governor ofLamu County,Mr.Mohamed Rajab,Regional Commissioner Coast Region,and PublicParticipants atMagongoStadium Changamwe.
• 44.TheJoint Committeeobserved that the successof theSouthLokicharOilProject is closely tied to theprevailing securityenvironment in theproject area.As the project transitions from the exploration phase to full-scale production and crude oil transportation,the scaleofoperations expands significantly,and so do theassociated risks andvulnerabilities.This progressionheightens theneed forarobust,coordinated, andcommunity-sensitive security framework.The Joint Committee observeda concerning disconncct between the Government's assurances regarding security preparedness and therealitiesexperienced by local communitiesinthe extraction areas. While official commitments emphasize adequateprotection andstability,communities

policypronouncementsandactual implementation.Bridgingthisgapwill becritical to ensuring operational continuity, safeguarding infrastructure,and maintaining communitytrustandsupportfortheproject.

• 45.TheJointCommitteeobservedthattheMinistryofInteriorhaspresenteda comprehensiveplan to enhance security along the oil transport corridor,including transitioningpoliceoperationsfromtemporarydeploymentstoapermanentpresence supportedbyaclearcommandstructure.TheJointCommitteefurthernotesthatthe MinistryofRoadsand Transportproposed to establishMotorVehicleInspection CentersinLodwar,Lokichar,andKitaletoensurethesafety androadworthinessofthe largefleetofoil tankers.Inaddition,theJointCommitteeobserves theMinistry's intentiontodeploydronesandreal-timetrackingtechnologytomonitorrisksand enablerapidresponsetopotential threats alongthecorridor.

B.Water Concerns:

• 46.TheJointCommitteereceivedsubmissionsfromTurkanaCountySecurityCommittee, Turkana ProfessionalsAssociation,MinistryofWater,PublicParticipants at Nakukulas Turkana East,PublicParticipants at Katilia Turkana East,Local CommunityWest Pokot,GovernorofLamuCountyandOfficials.
• 47.TheJointCommitteeobserved thattherewasemphasisontheurgentneedtoestablish new,sustainablewatersourcesforlocalcommunitiesbeforeanyabstractionofwater for the project begins.Itwas noted that the Turkana ProfessionalAssociation recommendeddrillingwellscapableofsupplying1,560cubicmetersperdaytomeet domestic,livestock,andkitchengardenneeds,thereby ensuringfood andwatersecurity forlocalfamilies.Thiswasfurtheremphasizedbymembersofthepublicstatingthat water forthecommunity shouldbegivenpriority over oilproduction.TheJoint Committeeobserved thatamajorityofhouseholdsinTurkanalackcleanwaterfor humanconsumption,domesticuse,and agriculturalactivities.
• 48.TheJointCommitteeobservedfromMr.JohannaEkwangsubmitted that therewas concern that the hydrologicalconnectivity of the area increases the risk that contaminationfrom drillingsites,wastepitsorpipeline leakscouldmigratebeyond the immediateprojectfootprint.
• 49.Irrigation Water Infrastructure and Community Consultation:The Joint CommitteeobservedthatstakeholdersinWestPokotCountyexpressedtheneedto expandthenumberofsix(6)proposedwaterpointsassociatedwiththeTurkwelwater supplyinfrastructure toensurebroadercoverageofaffectedvillages.TheJoint Committeefurthernotedconcernsthattheidentificationandsitingofthesewaterpoints should beundertaken throughstructured communityconsultations to enhance transparencyandlocal ownership.Inaddition,residentsofTurkwelproposed that the waterpipeline alignment should,where feasible,traverse villagesratherthan strictly followingroadreserves,inordertomaximise directcommunity accessandsocioeconomicbenefitsarisingfromtheproject.
• 50.Inter-County Consultations on Revenue Sharing:The Joint Committee the submissionsfromWestPokot Countyresidents andstakeholdersregardingthesharing ofoilrevenues,particularlyinlightof theCounty'srole asthe sourceofwater for petroleumoperationsinLokichar.TheJointCommitteeobserved thattheresidents proposed continuedconsultations betweenTurkana County andWestPokot Countybe benefitfromtheproject.

• 51.TheJoint Committee observes thattheMinistryofWater,Sanitation,andIrrigation has proposedatechnicalplanforwaterallocationfromtheTurkwel Dam.Underthisplan, approximately16,534cubicmetersperdaywouldbeallocatedtotheoilfields,62,616 cubicmetersperdaytoLodwartown andsurroundingcommunities,and328,000cubic metersperdaytotheLowerTurkwel IrrigationSchemecovering10,000 acres.
• 52.The Joint Committee noted that in the FDP,one of thekey design driver is water injection to maintain reservoir pressuure as indicatedin Section 7.2on Completion. Additionally,Section8.2of theFDPindicatesthatproducedwaterwillbetreatedand reinjectedbackintotheformationviainjectionwellsforrescrvoirpressuremaintenance sweep.Section8.3.3and8.3.7of theFDPalsoprovidesfora three-phaseseparation thatindicatedthatproducedwaterwillberoutedtoawatertankandthentreatedfurther. ItwasfurthernotedthatSection8.4.6oftheFDPstatesthatproducedwaterwillbe treated and thencombinedwiththemakeupwaterfromtheTurkwel Dam andreinjected tothereservoirs.
• 53.TheJoint Committeeobserved thereis agapbetween theproject'stimeline astransport ofoil is scheduledforDecember2026,and thecriticalsupportinginfrastructureisnot ready,raisingconcerns about theabilitytoprovidebothindustrial and localwaterneeds asscheduled.

C.Waste Management Concerns:

• 54.The Joint Committee received submissions from Members ofthe Turkana County Assembly,Turkana Professionals Association,Public Participants at Kalemgorok Turkana South,Public Participants at Lopii Turkana East,and Public Participants at Lokori TurkanaEast.
• 55.The Joint Committee observed from the submissions by Mr.Johnson Kibaki,a PetroleumEngineering student at theKenyattaUniversity,highlighted theneedfora more sustainable andinnovativeapproach towastemanagementwithin theproposed Field Development Plan(FDP).In particular,theproposal to process and repurpose drilling cuttings for use in cement manufacturing would present an opportunity to transitionfrom conventional disposalmethods toa circular economymodel.Such an approachwouldnotonlyreducetheenvironmentalrisks associatedwithwastedisposal, such assoil andgroundwatercontamination,but alsolower operationalcostsforthe projectand rawmateriai costs withinthe\_construction sector.
• 56.TheJoint Committee observed from the submissions that therewereconcernsregarding the proposed hazardous waste facility at Kang'ipetain,a critical grazing area with perennialpasturesandsprings.Itwasnoted thatlocalcommunitiesview thesiteas essentialfor pastoralistlivelihoods andthelocalecosystem,and thatplacinga hazardouswastefacility thereposes adirect threat toboth human andanimals.
• 57.The Joint Committee observed that residentsin Turkana County raised concerns relatingto healthlinked to hydrocarbon exposure,including benzene,citing risks such asleukemia,respiratoryillnesses,and reproductive issues,
• 58.TheJointCommitteenoted from submissions that therewereallegations thatthe previous contractor,Tullow Oil,bypassedproper treatment protocolstoreducecosts, includingpracticessuchastransferringwastebetweenwells.
• 59.Itwasnoted that theTurkanaProfessionalsAssociationrecommendedthatwaste transportationbemanagedby localcontractorsusingcertified andspecialized trucks. The Joint Committee noted thatwhile this approach supportslocal employment and skills development,it requires strictenforcement ofsafety standards to ensure that

hazardousmaterials arehandledproperly and thatrisksto workers,communities,and theenvironmentareeffectivelymitigated.

• 60.TheJointCommitteeobservedinrelationtotheconcernsexpressed that,theproject hasproposed anIntegratedWasteManagementFacilitythatemploysglobalindustry standardforthemanagementof drillingand hazardouswastewith afinal disposal in an engineeredsanitarylandfill,andtheNational EnvironmentManagementAuthority (NEMA)hasalsomandated theconstructionofa50-hectaresanitarylandfillnearthe Ngamia field,comprising13engineeredcellswitha totalcapacityofapproximately 325,oo0cubicmeters,toensuresafecontainmentofproject-generatedwaste.

D.Local Content,Procurement Concerns,and Benefit Sharing

• 61.TheJointCommitteereceivedsubmissionsfromTurkanaCountySecurityCommittee, MembersoftheTurkana CountyAssembly,TurkanaProfessionalsAssociation,Public Participants at Ekales Centre Lodwar,Turkana Council of Elders,Mr.Cyrus Letting, Mr.SmithNamjohi,KNCCI,Local Community West Pokot,TransNzoia Turkana CommunityDiaspora,GovernorofLamu County,Governor Abdullswamad Sheriff Nassir and Changamwe Constituencyresidents.
• 62.TheJointCommitteeobservedthat theTurkana CountyAssemblyraisedconcerns regarding thedistribution frameworkfor the5%localcommunityrevenue share, particularly on the criteria andmechanisms thatwill be used to allocate benefits among thenewlysubdividedsub-counties.TheJointCommitteefurthernotedthatthereisa needfortheCountyGovernmenttohaveaframeworkonhowthe20%shareduetothe countygovernmentshallbeutilized.
• 63.TheJointCommitteeobservedthatlocalcommunitiesandprofessionalgroupshave stronglyadvocatedformeasurestoensurethatthebenefitsoftheprojectdirectlyreach thosemostaffected.The JointCommittee noted thattheTurkanaProfessionals Association and residents submitted that specific local content quotas,including reserving70%of truckingcontracts(400trucksoutofanestimated600trucks),100% ofdriverpositions,and all unskilledlaborrolesforlocalpeople,emphasizingtheneed formeaningful participationintheeconomicopportunitiesoftheproject.
• 64.TheJointCommitteeobservedthatthereisanongoingdebateregardingthedefinition of"localin thecontext ofprojectbenefits.It wasnoted that theTurkanaProfessionals Association advocatedfora"HostCommunity"definitionlimitedtodistance-based radius around the extraction sites,aiming to ensure that economic and employment benefits areprioritizedforthosedirectlyimpactedbytheoperations,ratherthanbeing distributedmorebroadlyacrosstheentirecounty.
• 65.TheJointCommitteeobservedthatlocalcontentdiscussionsemphasized theinclusion ofmarginalized groups and gender equity.The Joint Committee noted that representatives called for 10%ofemploymentandprocurementopportunities, including truckingcontracts,tobereserved forPersonswithDisabilities(PWDs).The JointCommitteefurthernotedthatcommunitymemberssubmittedthattherewasa need forwomentoparticipateintechnicalandlogisticsroles,beyondtraditional positionsincateringorcleaning,supportedby targetedWomeninOil&Gastraining programs to enhance their skills and meaningful engagement in the sector.
• 66.TheJointCommitteeobservedthatthereweresubmissionsrecommendingstructural interventions toprevent elitecapture andensure equitableaccesstoproject opportunities.
• 67.The Committeeobserved that thereweresubmissionsproposingtocreateaNational SupplierDatabase toregister andpre-qualifybusinessesparticipatingin theproject.

• 68.TheJoint Committeeobserved that,the ChangamweConstituencyresidents expressed general supportforthe developmentofKenya'spetroleumresources,butwitha call for therevivalof theKenya Petroleum RefineriesLimited(KPRL)facility asafully operationalrefinerysincetherefineryhashistoricallybeentheeconomicbackboneof Changamwe,providing employment, skills development,local procurement opportunities,andbroadersocio-economicbenefitstothousandsofresidents.
• 69.TheJoint Committeeobserved that therewasa Local ContentPlan(LCP)attached as AppendixF,Section19oftheFieldDevelopmentPlanfortheSouthLokicharField Development.The LCP is prepared in accordance with the requirements of the Petroleum 1Act (20i9).This LCP sets out the principles,framework,and implementationmechanismsthatwillguidetheintegrationoflocalcontentthroughout the life cycle of theProject.Additionally,it outines an approach tomaximize socioeconomicbenefitsforKenyansthrough4pillarsnamely;employment,procurement, capacitybuilding&stakeholder engagementwhilecreatingopportunities andensuring alignment with national legislation,draft Local Content Regulations (2025),and internationalindustrystandards.Furthermore,theJointCommitteeobserved thatthe LCPhighlights a commitment tomaximizeKenyan participation,support enterprise growth,deliver workforce training&development,promote technology transfer and ensure transparentreporting.

E.Land Relatcd Concerns

• 70.TheJoint Committeereceived submissionsfromTurkanaCountySecurityCommittee, Members of theTurkana CountyAssembly,NakukulasLand Management Committee, Civil Society Members,Trans Nzoia Turkana Community Diaspora,Mr. Yahya Mohamed,and Ms.Magdaline Njeri.
• 71.The Joint Committeeobserved that theprojectrequiresroughly11,354.8hectares (about 40,oo0 acres)across the fields of Amosing,Twiga,Ngamia,and Ekales. Because Turkana County does notyet havea gazetted LandValue Index,theNLCis the landisregisteredunder 2l community titles,compensation will be channeled to Community Land Management Committees (CLMCs)rather than individuals, requiringtransparencytoensurefairdistribution andpreventelitecapture.TheNLCis alsoworking tobaiance industriai developmentwithpastoralistlivelihoodsby proposing controlled grazing in safezones within the acquired area.
• 72.Joint Committec analyzcd the submissions by National Lands Commission and observed that theprocesstocompulsorilyacquirelandrequiredfor theprojectwas being carried out by the National Lands Commissions in conjunction with the State department of Landunder the Ministry of Lands,PublicWorks,Housing,andUrban Developmentin accordance to theLandAct-PartVIll(CompulsoryAcquisition of interestsinLand)and theSection108ofthePetroleumAct2019.
• 73.TheJointCommitteenotedfromsubmissionsfromNLCthat568formalgrievances had beenrecorded,reflecting concerns among local communities.There was also the challenge of opportunistic claims,with some individuals establishing temporary structures to inflate compensation.To address this,the NLC informed the Joint Committee thatitwouldimplementarigorousverificationprocesstoensure that compensationreachestherightfulbeneficiaries.
• 74.TheJointCommitteefurtherobservedthattheNational LandCommission(NLC)ought toestablish a satellite office in Turkana County,preferably locatednear theoil infrastructure sites.Itwasnoted thathavingaphysicalpresence onthegroundwould improveaccessibilityforaffectedcommunities,enablefasterresolutionofgrievances,

andstrengthentransparencythroughoutthecompensationprocess.Alocalofficewould alsosupportreal-time verification ofclaims,enhance community engagement,and reinforcepublicconfidencebydemonstratingthattheland acquisitionprocessisbeing managed in aresponsive andaccountablemanner.

F.EnvironmentalAssessmentandSafeguards

• 75.TheJointCommitteereceivedsubmissionsfromTurkanaCountySecurityCommittee, Turkana CouncilofElders,Civil SocietyMembers,Local CommunityWestPokot, Trans Nzoia Turkana Community Diaspora,County GovernmentofLamu,and Regional CommissionerCoastRegion.
• 76.TheJointCommitteeobservedthatcivil societygroupsraisedconcernsregardingthe adequacyofthecurrentEnvironmentalandSocial ImpactAssessments(ESlAs)forthe project.TheJointCommitteenotedtherecommendationforaStrategicEnvironmental Assessment(SEA)toevaluatethecumulativeimpactsoftheoilprojectinconjunction withotherdevelopmentsalongtheLAPSSETcorridor.
• 77.TheCommitteenoted thatFieldDevelopmentPlanfor theprojectdoesnotinclude utilizationof theLAPSSET Corridor.However,theCommittee noted that the separationoftheESIAswasnecessitatedbythedifferentownership structuresfor upstream and mid-stream components.The Upstream component consistedof the PSC ContractorsandtheGovernmentofKenyathroughajointventurecompanythatwas envisaged.Forthewaterinfrastructure,thecurrentFDPdoesnotentailtheconstruction ofawaterpipelineasthisthecontactorwillpurchasewaterunderacommercial arrangementwiththewaterservicesprovider.Additionally,undertheFDP,thisisnow agovernmentenabler.
• 78.TheJointCommitteeobservedfromsubmissionsthattherewereconcerns,onreliance on600trucksinPhaseIwhichwouldgenerateacarbonfootprintandpresent continuousspillrisks.TheJointCommitteefurthernotedfromsubmissions thatlocal authorities currentlylackthe capacity,equipment,andexpertisetorespondeffectively mitigationmeasures.
• 79.TheJointCommitteeobservedfromsubmissionsthattherewereconcernsthatthere wasneedforplanningforthedecommissioningofoilfieldsasacriticalstrategyto preventleavingatoxiclegacy andthe establishmentofaDecommissioningGuarantee orBondtoensure thatfundsaresetasideforsiterestoration.TheJointCommittee observedthatClause42oftheBlockT6andT7oftheProductionSharingContracts provideguidanceforAbandonmentandDecommissioning.
• 80.TheCommitteeobservedthatSection10.5.7oftheFieldDevelopmentPlanprovides for thedevelopment of anemergencyresponseplan thatcatersfor any spills.
• 81.TheJointCommitteeobservedfromsubmissionsthatlocalcommunitiesadvocatedfor aleaseholdarrangementonlandthatrevertstothemfollowingsiterestoration.The JointCommitteefurtherobservedfromsubmissionsthatthemodelofleasingwould secure communityoversight,ensuring that operators areheld accountableforproper rehabilitationandthatbothlivelihoodsandtheenvironmentareadequatelyprotected.

G.CSRand ContinuousCommunityEngagement

• 82.TheJointCommitteeobservedfromsubmissionsthatthereisneedtoexpandthescope ofscholarships to supportpractical skillsdevelopmentowing to the demandfor TechnicalandVocationalEducationandTraining(TVET)programsthatequipyouth

withgreenskillsandtechnical trades,preparing themforemploymentin theoilsector andbeyond.

• 83.The Joint Committee noted therequest formobile classrooms to accommodate the nomadic lifestyle of pastoralist children,ensuring access to education regardless of location.
• 84.The Joint Committeeobserved from submissions that there were requests for the establishmentof aHost Community Information Officeat theprojectsitetoprovide verified information,manage grievances,and counter misinformation. The Joint Committeefurthernotedthecall forCommunityLiaisonOfficerstoserveasabridge between the operator and local residents,strengthening communication and trust.
• 85.The Joint Committee observed from submissions that therewasemphasis on the concept of Free,Prior,andInformed Consent(FPIC) should be treated as an ongoing processratherthanaone-timerequirement.
• 86.TheJointCommitteeobservedfromsubmissionsthatcommunityleaderssoughttobe signatories to Memorandums of Understanding(MOUs) and contracts,to provide inclusivity andparticipationin thedevelopment of theproject.

CHAPTERSEVEN RECOMMENDATIONS

7.0COMMITTEERECOMMENDATIONS

Havingconsideredandanalysed thesubmissionsbymembersof thepublic andstakeholders ontheProductionSharingContractsandFieldDevelopmentPlanforBlocksT6andT7in SouthLokicharBasin,Turkana County andinaccordancewithArticle71of theConstitution and section31(2)(a)of thePetroleumAct,Cap.308,theJoint Committeerecommends that this House adopts theReport and approves theRatification of theProductionSharing ContractsandFieldDevelopmentPlanforBlocksT6 and T7inSouthLokicharBasin, Turkana County.

02 cQ 19026

SIGNED..

DATE

SEN.(DR.) OBURUOGINGA,MGH,M.P. CHAIRPERSON,SENATESTANDINGCOMMITTEEONENERGY

TROSG

SIGNED...

..DATE..

HON.DAVIDGIKARIA,C.B.S,M.P. CHAIRPERSON,DEPARTMENTALCOMMITTEEONENERGY,NATIONAL ASSEMBLY

THE NATIONALASSEMBE PAPERSLAD

DAY.

DATE:

24FEB2026

TEDA

TABLED

HOOC DAVID CHKARiA,C&S,MO CHAIRDEASOH)

LERK-AT

IE-TABLE:

INOPUMWALE,

THIRTEENTHPARLIAMENT-FIFTHSESSION,2026

DIRECTORATEOFDEPARTMENTALCOMMITTEES

DEPARTMENTALCOMMITTEEONENERGY

ADOPTIONOFTHEREPORTONJOINTCONSIDERATIONOFTHEFIELDDEVELOPMENTPLAN ANDPRODUCTIONSHARINGCONTRACTSFORBLOCKST6ANDT7INSOUTHLOKICHARBASIN TURKANACOUNTYBYTHEDEPARTMENTALCOMMITTEEONENERGYOFTHENATIONAL ASSEMBLYANDTHESENATESTANDINGCOMMITTEEONENERGY

xednesda We,the undersigned HonorableMembersof theDepartmental CommitteeonEnergy today ...cQ.... do hereby affix our signatures to thisReport onJoint Consideration of theField DevelopmentPlan andProductionSharing ContractsforBlocksT6 and T7inSouth LokicharBasin, TurkanaCountytoaffirmour approval and confirm theiraccuracy,validity,andauthenticity.

| NO. | NAME | SIGNATURE | |-------|---------------------------------------------------|-------------| | 1. | The Hon.David Gikaria,CBS,M.P -Chairperson | | | 2. | The Hon.Lemanken Aramat,CBS,M.P-Vice- Chairperson | | | | TheHon.Samuel Gonzi Rai,M.P. | | | 4. | The Hon.Charles Gimose,M.P. | | | 5. | TheHon.JuliusMusili Mawathe,M.P. | | | 6. | TheHon.Walter Owino,M.P | | | 7. | The Hon.Elisha Odhiambo,M.P. | M | | 8. | The Hon.TomMboya Odege,M.P. | | | 9. | The Hon.Simon King'ara,M.P. | | | 10. | The Hon.George OmweraAladwa,M.P. | | | 11. | TheHon.VictorKoechKipngetich,M.P. | | | 12. | TheHon.GeoffreyEkesaMulanya,M.P. | | | 13. | The Hon.Cecilia Asinyen Ngitit,M.P. | | | 14. | TheHon.BarongoNolfason Obadiah,M.P. | m8me | | 15. | The Hon.Siyad Amina Udgoon,MP | |