ADVOKS GLOBAL · KENYA
Petroleum Act
18. Negotiation, award and execution of petroleum agreements
Edition: 2026-07-24 · In force
18. Negotiation, award and execution of petroleum agreements
(1)Subject to section 23 the Cabinet Secretary shall negotiate, award and execute a petroleum agreement, on behalf of the national government, in the form prescribed in the Schedule to this Act.(2)A petroleum agreement may be executed between the Cabinet Secretary and a contractor after the conclusion of bidding rounds conducted in accordance with this Act.(3)Despite subsection (2), the Cabinet Secretary may execute a petroleum agreement with a contractor after direct negotiations with that contractor on the recommendations of the Advisory Committee—(a)where no bids have been received during the bidding round;(b)where the bids that have been received do not satisfy the minimum criteria for the execution of a petroleum agreement; or(c)where there is insufficient data in relation to a block.(4)Where the Cabinet Secretary intends to negotiate directly with a contractor in accordance with this section, the Cabinet Secretary shall publish a notice of thirty days on the website of the Ministry, in the Gazette and in at least two newspapers of national circulation.(5)The Cabinet Secretary shall, in the notice published under subsection (4)—(a)set out a statement of the details of the contractor with whom the Cabinet Secretary intends to enter into direct negotiations;(b)invite any objections that a person may have with respect to the intended negotiations; and(c)invite any interested party who may have an interest in the block to submit a bid with respect to that block.(6)On the expiry of the notice given under subsection (4) and on the recommendation of the Advisory Committee, the Cabinet Secretary may—(a)commence direct negotiations with the contractor if that contractor is the only entity interested in the block; or(b)conduct a bidding round or bidding rounds in accordance with this Act if one or more entities declare an interest in the block.(7)The Cabinet Secretary shall inform all the bidders of the bidder to whom a block has been awarded.(8)The Cabinet Secretary shall, upon concluding negotiations under this section, publish a notice on the website of the Ministry, in the Gazette and in at least two newspapers of national circulation, information with respect to the contractor to whom the Cabinet Secretary has awarded a block and the outcome of such negotiations.(9)The Cabinet Secretary shall make Regulations for—(a)the procedure to be adopted during a bidding round;(b)the procedure to be followed in awarding a block to a contractor; and(c)the procedure to be adopted when negotiating directly with a contractor for the award of a block.(10)If a party to a bidding round or direct negotiations is dissatisfied with the award of the bidding round or direct negotiations, an appeal may be made to the Tribunal in the first instance.