Kenya 'seeks bigger cut' of oil profits

Cash call: Kenya's President Mwai Kibaki

REUTERS/SCANPIX

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News Wires

 14 November 2012 15:43 GMT

Kenya aims to take a bigger slice of the profits from its natural resources exploration boom by seeking a 25% stake in the production activities of oil and gas companies operating in the East African nation, according to a report.

The proposal announced by Kenya's energy minister is one of many the government has put forward in the past month to increase the state's take from oil and gas resources, including new capital gains tax rules, a more competitive licensing process and higher fees for petroleum explorers.

At present most of Kenya's contracts with oil explorers give state-owned National Oil Corporation of Kenya (NOCK) a 10% stake in the production business once commercial quantities of oil or gas are found. This means that NOCK contributes 10% of production costs and receives 10% of profit.

However, the government of…

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