Expanded Body to Control Oil Business
The government is proposing to reconstitute the National Fossil Fuels Advisory Committee (NAFFAC) to better oversee the budding petroleum exploration industry in the country.
In a proposed new energy policy that is currently open for input from stakeholders and members of the public, NAFFAC is to be expanded to include seven core inter-ministerial members plus five co-opted members.
"The reconstituted NAFFAC will composed of the ministry in charge of energy, Nock, Attorney-General, NEMA, KRA, the ministry in charge of mineral resources, as well as co-opted members from the Petroleum Institute of East Africa, University of Nairobi, Directorate of Personnel Management and Ministry of Finance," the proposed policy reads.
The new energy policy seeks to replace Sessional Paper No 4 of 2004 on energy. In 2001, the Ministry of Energy set up a working group to produce as sessional paper on energy. Represented on the working group was the ministry's Department of Renewable Energy, Kenya Power, Kengen, Nock, Kenya Pipeline, the then Electricity Regulatory Board now Energy Regulatory Commission, the World Bank and the Petroleum Institute of East Africa.
The working group split into four sub-groups namely; renewable energy, power, biomass and petroleum. Out of this working group would emerge Sessional Paper No. 4 on Energy Policy of 2004. The Energy Act No 12 of 2006 was enacted to succeed the Electric Power Act No. 11 of 1997 and the Petroleum Act, Cap 116. "The idea was to revise Sessional Paper No 4 of 2004 so we are rewriting a new policy so that we can align ourselves to the new constitution," ERC director-general Engineer Kaburu Mwirichia said during a function to award the Rural Electrification Authority with ISO: 9001 certification for quality management standards last week.
According to the policy, NAFFAC's role will be Negotiation with investors on the terms of the license of the Petroleum and Coal Blocks for Exploration, Production and Development and advising the Cabinet Secretary in Charge of Energy on Petroleum and Coal Exploration Matters. It willl also create and sub-divide new exploration blocks and establish a national petroleum data center. Other functions will include building local technical capacity in petroleum exploration as well as working with universities and companies on research. Mwirichia said after collecting views from the public regarding the new policy, an early draft may be ready in August for presentation to parliament.
Source : allafrica.com