National Oil Corporation of Kenya (NOCK)

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The National Oil Corporation of Kenya (NOCK) was founded in 1981 and has the mandate to "participation in all aspects of the petroleum industry."[1] Its service delivery is overseen by the Ministry of Energy and Petroleum.[2] Through NOCK the Kenyan state enters into production sharing contracts with foreign companies and participates in exploration activities.[3]

Organisation

NOCK is headed by a Board of Directors which oversees the strategic management and growth of the Corporation.[4] The Board is appointed by the Minster of Energy and led by a Chairman who is appointed by the President.[5]

Current Office Holders

As of October 2013, the members of the board are:

  • Peter Munga (Chairman)
  • Joseph Njoroge (from the Ministry of Energy and Petroleum)
  • Kamau Thuge (from the National Treasury)
  • Stanley Kamau (who holds the poste in alternation to a position at the National Treasury)
  • Timothy Mulaha (holds the poste in alternation to a position at the Ministry of Energy and Petroleum)
  • Fatuma Hassan
  • James Gacheru
  • Ezekiel Koimett
  • Jaafar Mohamed Sheikh
  • Bernard K. Njoroge
  • Jessie Wanjiku Mutura
  • Peter Gitonga

Functions

NOCK fulfills the following functions:

  • advising Kenyan energy policy makers[8]
  • compiling national energy data, running petroleum laboratories and the development of alternative fuels[9]
  • providing stability for the Kenyan market by commercial importation, distribution, sales and exportation of energy products (In 2010, NOCK was awarded a 30 percent quota for the importation of crude oil, jet fuel and gasoil. But as of March 2013 it is not importing its allocation[10] and controls about 5 percent of the Kenyan retail market.[11])

Legally, the Ministry of Energy and Petroleum has the licensing authority. However, according to IHS Global Insight, NOCK pratically acts as the licensing authority and negotiates with foreign companies.[12]

Review of functions and organisation

In July 2013, a World Bank team handed over a proposal to the government suggesting that NOCK should be split up to separate its regulatory affairs from its upstream activities.[13]

References

  1. "National Oil Corporation of Kenya". National Oil: Energizing Kenya, retrieved 29 October 2013.
  2. "Emerging East Africa Energy". Energy Information Administration, retrieved 23 May 2012.
  3. "Emerging East Africa Energy". Energy Information Administration, retrieved 23 May 2012.
  4. "Board of Directors". National Oil: Energizing Kenya, retrieved 29 October 2013.
  5. "Board of Directors". National Oil: Energizing Kenya, retrieved 29 October 2013.
  6. "Kenya". Freshfields Bruckhaus Deringer, retrieved 29 October 2013.
  7. The Deloitte guide to oil and gas in East AfricaDeloitte, retrieved 23 October 2013.
  8. "Kenya". Freshfields Bruckhaus Deringer, retrieved 29 October 2013.
  9. "Kenya". Freshfields Bruckhaus Deringer, retrieved 29 October 2013.
  10. "National Oil Corporation of Kenya". National Oil: Energizing Kenya, retrieved 29 October 2013.
  11. The Deloitte guide to oil and gas in East AfricaDeloitte, retrieved 23 October 2013.
  12. "Kenya". Freshfields Bruckhaus Deringer, retrieved 29 October 2013.
  13. "Proposed law for oil sector heralds row with counties". Freshfields Bruckhaus Deringer, retrieved 29 October 2013.