OIL & GAS
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The resolution also described this reduction as“ punitive, discriminative and an affront to perpetuating marginalization.” It also threatened to derail oil drilling, if their plea was not met. This puts Tullow Oil’ s KShs22.5Billion investment in jeopardy.
Over the last 50 years, the northern frontier( Turkana, Marsabit, Garissa and Wajir) has seen little in terms of infrastructure, with insecurity poverty and illiteracy at the highest levels. According to the Kenya Inter- Agency Rapid Assessment 2014, Turkana’ s poverty level is at 94 % while illiteracy stands at 82 %.
Turkana County experiences devastating droughts and famines. The county government is often forced to feed the population and negotiate peace for the thousands that migrate into neighbouring Uganda in search of water and pasture.
Thus, county government sees that it has an obligation to lift its citizens out of poverty through the proceeds of the oil sale.
This is not the first such disagreement. In 2013, Tullow Oil shut down its operations due to protests from the local community over lack of job opportunities and tender awarding. And while insecurity – brought on by cattle rustling- continued to be rampant, the oil explorer is provided with security.
WATTS UP MAGAZINE APR- MAY 2017
As a way forward, the company and county executives agreed to meet quarterly to discuss and settle any disputes.
In Nigeria, 13 % of the gross oil revenue is shared out to the nine oil producing states at the Niger Delta. In Uganda, the central government gets 85 % and local one gets 15 %. In the US, it is between 5 % and 9 %. In the Middle-East, the states have absolute control of the revenues
Recently, a plan to transport the oil by road to the Mombasa Oil Refinery sparked a new protest. The community demanded that the Lodwar – Kitale Road( 325Kms) be repaired first.
There is need for capacity building at the county level in order to counter the incitement that there is overnight wealth to be made from the natural resources. The government must take an affirmative action to educate the locals on their role
and opportunities. Priorities in Advance of Production, an Oxfam Report, suggests that Kenya could make Sh6.4trillon; Sh280billion each year from 2020 to 2043 when the oil will be depleted.
The county government is eyeing a bigger share of the 600million barrels of oil expected from the Turkana sites. Indeed the cabinet proposal that was floated by the president himself is well within the internationally accepted standards for example-
In Nigeria, 13 % of the gross oil revenue is shared out to the nine oil producing states at the Niger Delta. In Uganda, the central government gets 85 % and local one gets 15 %. In the US, it is between 5 % and 9 %. In the Middle-East, the states have absolute control of the revenues.
Whether the Turkana County plea will be heard or not remains to be seen. There are lessons to be learnt from African oil producers such as Nigeria. Despite being the 4th largest oil producer in the world, the people living in the Delta are some of the poorest in the country. South Sudan, Africa youngest nation is embroired in a new civil.
It is a fact that oil dollars can enable a country or region attain a Shangri-La. Will this be the case for Kenya and Turkana County? Only time will tell