Petroleum Sector Institutions

This section contains information on the petroleum sector players in Kenya.

No. Stakeholder Role/ Functions

1.

The Ministry of Energy and Petroleum (MOEP)

In charge of formulating and implementing policies so as to create an enabling environment for efficient operation and growth of the sector. It sets the strategic direction for the growth of the sector and provides a long-term vision for all sector players.

The Ministry of Energy and Petroleum's functions as detailed in the Executive Order No. 2/2013 of May 2013 on the Organisation of the Government of the Republic of Kenya are:

• Energy Policy and Development.
• Oil and Gas Exploration.
• Oil/Gas and Minerals sector capacity development.
• Petroleum products, import/export/marketing policy Management.
• Renewable Energy Promotion and Development
• Energy Regulation, Security and Conservation.
• Fossil Fuels Exploration and Development.

Among other functions.


http://www.energy.go.ke/index.php
http://www.shitemi.com/wp-content/uploads/2013/10/executive-order-no-2-of-2013-on-the-organization-of-gok.pdf

 

2.

National Fossil Fuels Advisory Committee (NAFFAC)

Within the Ministry of Energy and Petroleum the Commission has the responsibility to negotiate with investors on the licensing of petroleum blocks for exploration and production. Under the third draft of the National Energy Policy, the role of the Committee should be expanded to also;

• advice the Cabinet Secretary in Charge of Energy on Petroleum and Coal Exploration
• negotiate the terms of licenses of Petroleum and Coal Blocks for Exploration, Production and Development with investors
• create and sub-divide new exploration blocks and establish a national petroleum data centre
• build local technical capacity in petroleum exploration as well as working with universities and companies on research

The Committee is made up of:

• the Cabinet Secretary of the Ministry of Energy and Petroleum (MoEP)- Chairperson of Committee
• the Managing Director of the National Oil Corporation of Kenya (NOCK)- Secretary of the Committee
• the Solicitor General of the State Law Office
• the Commissioner of Petroleum of the Ministry of Energy and Petroleum
• the Director General of the National Environment Management Authority
• the Commissioner General of the Kenya Revenue Authority
• the Commissioner of Mines and Geology
• the General Manager of the Petroleum Institute of East Africa (PIEA)
• the Chairman of the Department of Geology of the University of Nairobi
• the Investment Secretary of the Ministry of Finance
• the Chairman of the Department of Public Law of the University of Nairobi
• the Chairman of the Institute of Development Studies of the University of Nairobi

http://wiki.openoil.net/National_Fossil_Fuels_Advisory_Committee_(NAFFAC)

 

3.

National Oil Corporation of Kenya

The NOCK is a fully integrated State Corporation involved in all aspects of the petroleum supply chain covering the upstream (oil and gas exploration), midstream (petroleum infrastructure development) and downstream (marketing of petroleum products).

In the upstream, National Oil facilitates and directly participates in oil and gas exploration activities in Kenya. As a facilitator, National Oil is tasked with the marketing of Kenya's exploration acreage, management of gas and exploration data and the running of the National Petroleum Laboratory among other attendant responsibilities.

4.

Kenya Petroleum Refineries Limited (KPRL)

The KPRL was originally set up by Shell and the British Petroleum Company BP in 1959 to serve the East African region in the supply of a wide variety of oil products. It was set up the name East African Oil Refineries Limited. The refinery is in Changamwe, Mombasa Kenya.
The refinery complex has the following units:

• distillation,
• hydrotreating,
• catalytic reforming; and
• bitumen production units

The refinery processes imported crude oil for marketing companies (Refinery Users) on the basis of processing agreements which set out precise terms upon which the Refinery takes custody of specific quantities and types of crude oil, and how they should be processed and delivered. For this service, the user pays a processing fee.

Additionally, the refinery offers the following service:

• Crude oil refining
• Laboratory services
• Loading Facility
• Emergency Response School

KPRL's main products include Liquefied petroleum gas, unleaded premium gasoline, regular petrol, automotive Gasol, Industrial diesel, fuel oil and special products like bitumen and grease.

 

5.

Kenya Pipeline Company Limited (KPC)

(KPC) is a State Corporation established on 6th September 1973 under the Companies Act (CAP 486) of the Laws of Kenya and started commercial operations in 1978. The Company is 100% owned by the Government and complies with the provisions of the State Corporations Act (Cap 446) of 1986 (hence it is a Parastatal).
The main objective of setting up the Company was to provide efficient, reliable, safe and cost-effective means of transporting petroleum products from Mombasa to the hinterland.
The company owns and operates an approximately 896km pipeline network in the country. The pipeline length at various depots is as given:

• Mombasa-Nairobi (Line-I) - 450 kms
• Nairobi – Eldoret (Line-II) - 325 kms
• Sinendet-Kisumu (Line-III) 121 kms

6.

The Petroleum Institute of East Africa (PIEA)

The Petroleum Institute of East Africa (PIEA) is the professional body for the oil and gas industry in the East Africa region. The mission of the PIEA is to provide a forum for expertise and excellence in the oil industry, promote professionalism and free enterprise in the petroleum business supported by the highest operations and business standards.

The PIEA Activities include:

• Participation in drafting Petroleum policy, statutes, regulation and standards.
• Participation in other professional associations to increase industry representation on issues affecting the oil and gas business.
• Creation of centres of petroleum focus in key regulatory agencies.
• Hosting industry activities on behalf of members. Engaging petroleum associations and stakeholders in the EA region for the establishment of harmonised standards & practices Publishing of books for sale on specific petroleum subjects Publishing of a quarterly Energy journal, Petroleum Insight

As earlier stated, PIEA is a member of the National Fossil Fuels Advisory Committee (NAFFAC) under the Ministry of Energy and Petroleum.

School of Petroleum Studies.

The School of Petroleum Studies was incorporated in 2007 as a wholly owned subsidiary of Petroleum Institute of East Africa (PIEA) with the prime objective of offering first class specialised training with a curriculum focused on downstream and upstream oil and gas. The establishment of the school is a reflection of the essence of the PIEA

7.

Energy Regulatory Commission (ERC)

The ERC is established under the Energy Act, 2006. Following the operationalization of the Energy Act, 2006, with effect from July 7 2007, the Electricity Regulatory Board (ERB) became Energy Regulatory Commission (ERC) with the following objectives and functions:

• Regulate the electrical energy, petroleum and related products, renewable energy and other forms of energy.
• Protect the interests of consumer, investor and other stakeholder interests.
• Maintain a list of accredited energy auditors as may be prescribed.
• Monitor, ensure implementation of, and the observance of the principles of fair competition in the energy sector, in coordination with other statutory authorities.

The ERC is a key player in the downstream petroleum sector mainly due to its role of regulating the retail prices of Petroleum Products in Kenya.

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