Kenya Face Dividend Sharing as a New Oil-Exporting Country

 

August 27, 2019

Anna Murray 

 

Kenya exported its first oil on August 26th, with more than 200,000 barrels of cargo. As the first nation in East Africa joining oil-exporting countries, the tension of the benefits-sharing between country and the oil-producing area just arose. The leader of oil-producing counties pointed out the country should keep its promise of contributing revenue.

 

Turkana is in the northern region in Kenya, where the crude oil located. The law Petroleum Act of 2019 was signed by Uhuru Kenyatta, Kenya’s President, in March 2019. According to the law, the central government could have 75% of the profits, while counties generating oil gaining 20% and 5% to the local communities.

 

The 200,000 barrels of crude oil was sold to ChemChina UK Ltd, the trading company, as the pilot run with the Kenya government on August 26th. Other oil partners include Africa Oil Corp, British oil explorer Tullow Oil, and France's Total SA. According to Tullow Oil, there might be 560 million barrels of oil in Kenya.

 

 

Photo:Webshot.

source: 
Global People Daily News