Three multinational companies move to court to challenge order barring them from exploring oil, gas in Wajir

Wajir, Kenya: Three multinational companies have moved to High Court to seek a suspension of an order barring them from carrying out gas and oil exploration in Wajir County.

The investment companies argue that the order issued on November 12 in an application by members of Ajuran community, failed to disclose to the court the true facts about the exploration process.

Representing companies carrying out the exploration, Lawyer Mohamed Nyaoga told Justice George Odunga that the allegations raised by the members of Ajuran community over imminent eviction, displacement and relocation was not founded on true facts and material.

He said before Lion Petroleum Corporation, Talpan Resources Incorporation and Premier Oil PLC commenced the drilling of gas extraction activities in the area, they had conducted an environmental and social impact assessment study as required by the law.

Nyaoga told the judge that the residents failed to disclose to the court that they had sought a conservatory order before a three judge bench and the same was rejected.

The court was meant to understand that oil exploration activities is to cover 7,8000 square kilometers, whereas the true position is that the same covers 5457.9 squares kilometres, out of which is only 0.3545 squares kilometers (36.6 hectares) that is unavailable for grazing.

Lawyer Nyaoga submitted that the gas and oil exploration companies have a reason to believe that the proceedings by the residents of Ajuran were instituted with ulterior motive of applying undue influence over tenders.

"The companies have made substantial financial investment of approximately USD 22,000,000.00, which the court should consider and lift the order" the lawyer said.

The court heard that the suspension of the project would cause the investment companies significant loss and would further expose them to costs and penalties running into thousands of dollars under various contracts that it has concluded with third party contractors.

The court will deliver its ruling Friday as to whether the order should be suspended.