Design of fiscal and contractual terms for the development of gas reserves in Kenya

The Ministry of Energy of Kenya has requested the World Bank to provide technical assistance and capacity building to the Ministry of Energy related to the development of fiscal and contractual terms for natural gas developments as well as negotiation practices, based on international good practice, which will attract private investments while maximizing the Government take from future production revenues. In developing gas terms the following aspects will be reviewed: specific nature of the gas value chain, markets, timeline of a gas development, economics of a gas project and State role and interests in the project. References will be taken from international practices and in particular from neighboring countries. The study will result in:

- A proposal of revised or additional terms in the Petroleum Bill, Model PSC and, if necessary, relevant fiscal laws. 

- An economic model to be used during contract negotiations.

- Terms of reference for the GoK to hire independent legal advice during these negotiations when required