Senate questions Turkana Oil Company about operations ceasing

Senate questions Turkana Oil Company about operations ceasing

Senate questions Turkana Oil Company about operations ceasing

The Turkana oil project in the Lokichar area was suspended after the initial production, which was trucked to Mombasa for exporting, according to the Senate Energy Committee. Senators Dr. Boni Khalwale, James Lomenen, Danson Mungatana, Mohamed Abass, Oburu Odinga, and William Kisang served on the committee headed by Senator Wamatinga.

Kenya has been unable to begin commercial production since the area’s oil was discovered ten years ago, and the project has encountered numerous setbacks. Africa Oil and Total left the project early this year, leaving Tullow Oil as the project’s lone owner. Production was scheduled to begin in 2020.

Senators claim that Tullow Oil temporarily halted some of its operations as a result of the COVID-19 epidemic, which interfered with most of their objectives. The Field Development Plan (FDP) that Tullow Oil presented to EPRA in June is anticipated to open the door for the commercialization of blocks 10BB, 13T, and 10BA in the South Lokichar Basin.

Even though the company is still looking for a strategic investor, it is anticipated that the Ministry and the energy regulator will make a decision in September. Franklin Juma, the external affairs manager for Tullow Oil, spoke to senators on the need for government assistance in boosting security, fostering a favorable business environment, hastening the FDP review, and fostering better ties between the West Pokot and Turkana Communities.

The committee claims that at the discussion, the issue of unpaid bills to the Turkana county government and the local population following the sale of the first shipment was brought up.The company said that because they had not yet entered the commercial stage, the two initial shipments were made for testing only, with the money earned going toward paying for the drilling expenses.

“Tullow Oil has struggled for a while since it doesn’t aggressively involve the neighborhood in its activities. The local community, who frequently feels excluded from the potential benefits of oil exploration and production, has grown resentful and unsatisfied as a result of this lack of involvement, senators underlined in a statement.

James Lomenen, a senator for Turkana County, questioned, “Why were we not involved in the sale of our oil?” The importance of community involvement in promoting goodwill and guaranteeing sustainable development was emphasized by Senator Lomenen.

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