Kenyan president Uhuru Kenyatta has signed a long-awaited petroleum bill into law to regulate oil exploration and production.
The Petroleum Bill will provide a framework for contracting, exploring, developing and producing petroleum and also used to formulate national petroleum policy and conduct petroleum operations. It will also be a reference point in the establishment of petroleum institutions.
It also outlines how revenues are to be shared with the national government, county governments and local communities set toreceive a fair share of benefit from revenues generated by petroleum operations.
Tullow Oil and its partner Africa Oil discovered commercial reserves in the Lokichar basin in 2012 and both companies are working towards a final investment decision (FID) by the end of the year.