17. Mr. Creech Jonesasked the Secretary of State for the Colonies the conditions of the licence recently issued to certain oil prospecting companies in Kenya; and whether it is the intention of such companies to engage in prospecting without further delay?
§ The Secretary of State for the Colonies (Mr. Ormsby-Gore)An exclusive oil exploration licence has been issued by the Government of Kenya to the D'Arcy Exploration Company, Limited, and the Anglo-Saxon Petroleum Company, Limited, jointly, over areas in Kenya totalling about 115,000 square miles. The licence, which is only concerned with the preliminary exploration of the area, is for a period of two years ending in February, 1939, and is subject to the provisions of the Kenya Oil Production Ordinance and Regulations as to the prosecution of geological and geophysical research and reporting all the results of 1943 the exploration to the Government. It conveys no surface rights whatever, save such as are absolutely necessary for making a geological examination, and it conveys no rights to win oil or other minerals. The licensees' survey party arrived in Kenya early this year and is understood to have commenced operations under the exploration licence.
Mr. JonesCan the Minister say whether, in the event of oil being discovered, it will be a condition that a substantial contribution will be made to a native welfare fund?
§ Mr. Ormsby-GoreI think that we have first to find out whether there is any oil in Kenya at all That remains to be done. These two companies are exploring, and also the technical bodies of the two great oil companies, the Anglo-Iranian and the Anglo-Saxon, and until we get a report on the possibilities of oil, I should not like to prejudge anything that might follow.
§ Mr. RileyAre the expenses of the explorers borne by the licensees entirely, and not by the Government?
§ Mr. Ormsby-GoreYes, Sir.