National Fossil Fuels Advisory Committee (NAFFAC)

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The National Fossil Fuels Advisory Committee (NAFFAC) was set up by the Minister of Energy and Petroleum and constitutes the licencing arm of the government.[1]

Functions

According to the homepage of the Ministry of Energy and Petroleum the Commission has the responsibility to negotiate with investors on the licensing of petroleum blocks for exploration and production.[2] Under the third draft of the National Energy Policy, the role of the Committee should be expanded to also:[3][4]

  • advice the Cabinet Secretary in Charge of Energy on Petroleum and Coal Exploration
  • negotiate the terms of licenses of Petroleum and Coal Blocks for Exploration, Production and Development with investors
  • create and sub-divide new exploration blocks and establish a national petroleum data center
  • build local technical capacity in petroleum exploration as well as working with universities and companies on research

However, a policy proposal for a new competitive legal framwork that was handed over to the government by World Bank consultants in June 2013, proposes that the Ministry of Energy and Petroleum should assume control over the negotiation of Production Sharing Contracts, a duty currently undertaken by the NAFFAC.[5]

Organisation

The Committee is made up of:[6]

  • the the Permanent Secretary of the Ministry of Energy and Petroleum (MoE) who acts as the chairman of the Committee
  • the Managing Director of the National Oil Corporation of Kenya (NOCK) who acts the secretary of the Committee
  • the Solicitor General of the State Law Office
  • the Commissioner of Petroleum of the Ministry of Energy and Petroleum
  • the Director General of the National Environment Management Authority
  • the Comissioner General of the Kenya Revenue Authority
  • the Commissioner of Mines and Geology
  • the General Manager of the Petroleum Institute of East Africa (PIEA)
  • the Chairman of the Department of Geology of the University of Nairobi
  • the Investment Secretary of the Ministry of Finance
  • the Chairman of the Department of Public Law of the University of Nairobi
  • the Chairman of the Institute of Development Studies of the University of Nairobi

References

  1. New rules seek to boost revenues from oil ventures”. Business Daily Africa, retried 6 November 2013.
  2. NAFFAC”. Ministry of Energy and Petroleum, retried 06 November 2013.
  3. National Energy Policy”. Ministry of Energy, 11 May 2012.
  4. Expanded Body to Control Oil Business”. the Star, 1 June 2012.
  5. Proposed law for oil sector heralds row with counties”. Business Daily, 11 July 2013.
  6. NAFFAC”. Ministry of Energy and Petroleum, retried 06 November 2013.