Tullow must involve locals in its oil plans

Hon James Lomenen addresses demonstrators outside the Twiga 1 site. The demonstrators were demanding employment, contracts and supplies. Following the demonstrations which paralyzed activities within the oil sites, Tullow Oil suspended all operations, evacuating it's staff for security purposes. PHOTO: PETER WARUTUMO/NATION

What you need to know:

  • Turkana is the only place on earth that hosts 140,000 refugees who are better off than the local inhabitants.
  • The late submission on the CLA smacks of mischief overlooking a process that was long, open and community based.

Africa has once again become the new hunting ground for investors, speculators and the top brass in the extraction industry.

Kenya too has its titanium, gold, coal and even oil, offering considerable hope to the people of Turkana.

With 10 of 22 licensed wells explored, Tullow Oil is already projecting an output of at least one billion barrels and that is expected to soon match the six billion that represents the South Sudan reserve.

The resources are no curse but a blessing that must be managed properly to ensure both Kenya and the people of Turkana benefit from the gifts that God has put under their feet.

Tullow must be mindful that the oil is located in one of the poorest and most marginalised regions on the planet. Turkana is the only place on earth that hosts 140,000 refugees who are better off than the local inhabitants.

The initial agreements between the oil company and the Kenyan government that Tullow refers to as Production Sharing Contracts (PSC) were signed and sealed without any consultation with the host community.

There were, of course, some tenders for politicians masquerading as supply companies, but no real benefit for a community prone to periodic famines and with non-existent infrastructure.

"WANTS NO DISCUSSIONS"

Tullow has already experienced a three-week shutdown and consequently appears to have contracted its aviation and security sector to a company owned by a man who supplied mercenaries to the Americans in Iraq!

Tullow would be making a grave mistake to believe that it can develop the oil industry and not have the locals involved in the consultations or in the royalties sharing.

Yet, a recent and late submission by Tullow to the task force preparing the Community Land Bill (CLA) suggests that it wants no discussions or benefit sharing with residents, preferring instead to insist that PSCs are sacred and cannot be reversed by new legislation.

It fails to understand that the purpose of the CLA is to give communities the right to adjudicate, register and protect their own community land; so how can it claim it will not make lease agreements with communities who are the owners of the land it are drilling in?

Tullow wants compulsory acquisition to be exempt from any community consultations. It also desires to have oil considered as a fossil fuel rather than a natural resource that would be not be subject to the draft Mining Bill that advocates that national governments receive 35 per cent of all royalties.

Currently extracting companies are giving host nations a maximum of 10 per cent, apart from Zimbabwe whose recent legislation keeps 51 per cent of shares in local hands: 36 per cent to national government; 10 per cent to local community and 5 per cent to company workers.

The late submission on the CLA smacks of mischief overlooking a process that was long, open and community based. But there is also secrecy around the original PSC and neither the proposed Mining nor Petroleum Bills are clear on how the benefits will be shared and used.

The Ministry of Energy appears just as mischievous as Tullow so we must be extra vigilant.