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Turkana residents now demand supply deals with Tullow Oil

Saturday October 22 2016
ngamia

Workers at an oil rig at Ngamia 1 in Turkana County. Turkana residents are demanding guarantees that they will be given priority in supplying goods and services to exploration firms involved in early oil production set to start in northern Kenya in 2017. PHOTO | FILE |

Turkana residents are demanding guarantees that they will be given priority in supplying goods and services to exploration firms involved in early oil production set to start in northern Kenya next year.

The Turkana Empowerment Advocacy Group (TEAG) wants residents to be given priority in procurement before Tullow Oil Plc with its partners starts daily output of 2,000 barrels of crude in South Lokichar in March 2017.

TEAG has raised the stakes on the back of Kenya’s draft Local Content Bill 2016, which will compel extractives companies to give priority to the local companies when procuring goods and services.

The Bill aims to ensure communities in areas hosting oil, gas and other minerals benefit from exploration and extraction activities.

Local, with expertise

TEAG, in a petition to Tullow and Ministry of Energy, said there are local firms owned by community associations or groups who have developed expertise in oil production.

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“In the agreement between Tullow and its contractors, there should be a clause that directs the contractor to subcontract some activities to local companies,” said TEAG chairman John Ekai.

The petition, dated September 27, demands that local content plans be made available to residents before early production starts. They also want equitable benefits sharing, water wells be drilled and completion of community projects.

The proposed legislation by the Senate has rules and guidelines to help the growth of local industry by requiring a minimum percentage by value of goods and services to be provided locally.

Senate Energy Committee Chairman Gideon Moi said the proposed Bill will ensure local industries within the extractives sector are able to compete with large multinational companies.

“Discovery of oil, gas and other mineral resources was God-sent. These resources were discovered when needed most by Kenya to accelerate economic take-off and achieve comprehensive development,” he said.

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