State to pay Turkana oil fields landowners

The State is finally expected to pay out billions of shillings to more than 516 landowners in Turkana County after a British exploration firm Tullow Oil presented a clearer plan for oil production in South Lokichar Basin.

Energy Principal Secretary Andrew Kamau said preparations for the compensation payouts will start this week.

“On Monday the work in Turkana begins...now that we have better clarity, we can then go ahead and acquire that land and purchase it from the people who are there,” he said Thursday after a meeting with Rahil Dhir, and Keith Hill, who are the chief executive officers of Tullow Oil and Africa Oil, respectively.

Tullow and Africa Oil have a joint venture for the Turkana oil project.

Tullow officials said last week the exploration firm had stepped up the search for a strategic partner to help implement a development plan for oil production in Turkana County.

This will pave the way for the planned development of a pipeline and oil processing facility in the basin that includes $3.4 billion (Sh373.6 billion) investment for upstream activities.

Tullow, which entered Kenya in 2010, last month presented its long-awaited revised development plan for oil production in Kenya for approval.

News of the compensation plans initially announced by the State in 2019 comes as good news for landowners at a time the oil project had faced headwinds.

In a gazette notice dated Friday, February 8, 2019, the National Land Commission (NLC) said the planned acquisition would affect more than 516 landowners in the Amosing, Ngamia and Twiga oil fields.

“In pursuance of section 107 (5) and 162 (2) of the Land Act, 2012 the National Land Commission on behalf of the Ministry of Petroleum and Mining, State Department of Petroleum gives notice that the government intends to acquire the land depicted by and falling within the following co-ordinates in Turkana County for upstream development, South Lokichar Oil Project,” NLC had said.

“Plans depicting the land may be inspected during working hours at the office of the National Land Commission, Ardhi House, Third Floor, Room 305, 1st Ngong Avenue Nairobi. Notice of inquiry will be published in the Kenya Gazette as per section 112(1) of the Land Act, 2012.”

The land acquisition process for construction of the Lokichar-Lamu pipeline whose implementation was set for last year, had faced headwinds with local leaders reportedly maintaining a hard-line stance on the issue.

In 2019, the Turkana County government went to court seeking conservatory orders to stop the implementation of the NLC’s decision to acquire the indigenous ethnic land even as Governor Josphat Nanok and Turkana South MP James Lomenen complained about lack of transparency.

Mr Nanok had argued NLC proceeded to initiate the acquisition of the land in total disregard of the constitution and the Land Act.

“The county government is the custodian of the community land and must be included in such processes, such as compulsory land acquisition. They must involve us for fruitful consultations,” the governor was quoted saying earlier.

According to the revised plan presented by Tullow, the construction of the pipeline is expected to take about three years.

Tullow’s latest oil development project will cost a higher gross budget of about $3.4 billion (Sh373.6 billion) owing to changes in its initial design to incorporate a bigger processing facility and oil pipeline.

Tullow, which struck oil nine years ago, has been under pressure from Kenya to develop the Turkana oil wells that it expects to produce up to 120,000 barrels per day once production starts.

Kenya first announced the discovery of oil in Block 10BB and 13T in Turkana in March 2012, raising hopes of petro-dollars needed to fuel economic growth. But the country is yet to fully commercialise crude oil.

Kenya had set a December 2021 deadline for Tullow to present a comprehensive investment plan for oil production in Turkana or risk losing concession on two exploration fields in the area.