• Type: Publication series
  • Date: 8/1/2014

Changing fortunes for the petroleum industry 

In the first of a two-part series KPMG analyses the impact on the petroleum industry of Kenya’s new tax measures
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Onshore exploration for oil and gas in Kenya dates back to 1954, when BP Plc and Shell began exploring for oil in the Lamu basin. Companies such as Frobisher Ltd, Adobe Oil Company, Burmah Oil Company, Texas Pacific, Chevron and Esso joined the fray in the 1970s. This early activity was the precursor to the drilling of three deep wells (Simba-1, Maridadi-1 and Kofia-1) in the early 1980s. During this period Kenya did not have any legislation to cover oil and gas exploration.


In 1984 the Kenya Government enacted The Petroleum (Exploration and Production) Act, CAP 308 (the Act) to provide a governing framework for the oil exploration sector. In these early days the emphasis was on attracting companies to carry out exploration activities.The Act was amended in 1986, moving the basis for Government participation in oil production from royalties on oil sales to Production Sharing Contracts (PSC)...Read more