ADVOKS GLOBAL · KENYA
Petroleum Act
19. Express rights and obligations in petroleum agreements
Edition: 2026-07-24 · In force
19. Express rights and obligations in petroleum agreements
(1)Notwithstanding any other written law and subject to this Act every petroleum agreement shall require the contractor to—(a)perform certain minimum work and incur certain minimum expenditure during the course of exploration operations;(b)present to the Cabinet Secretary a field development plan in respect of any commercial field and promptly take all steps that are reasonable to develop that field for production;(c)present to the Cabinet Secretary a work programme and budget for each year of operation;(d)keep accurate books of accounts and records of upstream petroleum operations and submit quarterly expenditure reports and annual audited financial statements to the Cabinet Secretary;(e)conduct upstream petroleum operations in accordance with requisite professional and technical skills;(f)adopt measures necessary for the conservation of petroleum and other resources as well as protect the environment;(g)give preference to the use of locally available raw materials, products, equipment, manpower, services and continuously transfer technology and build local capacity;(h)indemnify the Government against all claims made by third parties, in respect of any injury, damage or loss caused by, or resulting from, the conduct of any operations carried out by the contractor or subcontractors pursuant to the provisions of any petroleum agreement;(i)provide such information, data, reports and samples concerning upstream petroleum operations as the Cabinet Secretary or Authority may require; and(j)conduct all upstream petroleum operations in accordance with the best petroleum industry practice.(2)The contractor shall have an exclusive right to explore and exploit petroleum in the contract area subject to the provisions of this Act and the petroleum agreement.