The government is looking sign an MoU in a bid to end a stalemate between Tullow Oil Company and the local community of Turkana. The MoU is expected to address concerns such as regulatory framework for community engagement and local content development.
Petroleum Chief Administrative secretary claims that incurred losses following the oil trucks standoff will hit 1 billion in a week if the issue is not resolved on time.
The losses are ensuing from compensation payable to companies involved in the mining of the oil and movement of trucks to the port of Mombasa.
“Both the members of parliament for Turkana South and East will be required to support the resumption of the contractor’s operations by conducting baraza forums within their constituencies with an aim of sensitizing their constituents on the benefits of the project.” according to Citizen TV.
The ministry of Petroleum will also form a grievance and management committee to handle the hearing of grievances in a decent manner
Tullow Oil had on July 18th warned that it would shut down its operations in Turkana if the impasse with the local community was not resolved. Protests from the locals made the firm evacuate it employees and contractors.
Tullow Oil M.D Martin Mbogo had alluded to running out of current inventory estimates needed to run the Kapese Intergration Operation Base in the next 14 days hence having a complete shutdown of the camp.
Business traders continue to report losses following suspension of operations with other being rendered jobless.
In amid the oil standoff, Tullow oil has been given the go ahead to sell its 10 per cent stake in an oil block in Elegeyo Marakwet to UK’s Delonex Energy. Delonex will increase its stake in Block 12A to 60 per cent while Tullow’s will come down to 40 per cent.
