Over the past one year, Tullow Oil has been reducing the number of its employees through failure to renew contracts that were due for renewal and through actual layoffs. The company said it had sent home 30 percent of its employees. Additionally, the company has slowed down giving jobs to locals companies that have been supplying it with products and services.
The Ministry of Energy and Petroleum have said the reduction in employee numbers is as a result of transiting from a fast-paced and expansive exploration phase to preparing for the important development phase.
“There are no wells to be drilled in 2018. Tullow Oil and its joint venture partners will mostly be undertaking appraisal and extended well tests. These do not require a lot of human resources,” PS Kamau stated. “In 2017, the firm drilled ten wells, this year they will not be drilling any, so they do not need a lot of people. I do not think there is cause for alarm.”
Martin Mbogo, Country Manager Tullow Oil said: “Given our transition from exploration and appraisal to the preparation for the development phase, we have reviewed the resource requirements for our Kenya business, as this next phase of the business requires different skill sets and experience. We started the transition into the development phase late last year and this did result in some reduction of people in both the UK and Kenya.”
South Lokichar Development Plan
Tullow Oil released its 2017 results earlier this month which indicate 11 successful exploration wells, 21 appraisal wells drilled, and undrilled prospect inventory of about 230 million barrels of oil (mmbo).
The Development plan will involve the foundation stage at Amosing and Ngamia fields followed by incremental and full development.
“[…] The proposed development plan reflects the Partnership’s desire to sanction the project in a manner that is commercially robust, ensures the earliest possible Final Investment Decision and First Oil and supports the required infrastructure given the location of the South Lokichar basin some 750 km from the Kenyan coast,” Mark MacFarlane, Executive Vice President for East Africa said.