Joy as Kenya strikes oil

By Moses Njagih and Njiraini Muchira

Beneath Turkana County, the land of burning sand, blistering heat, so many hungers, and untold human misery, lies oil deposits that could forever change Kenya's economic fortunes.

The question remains how big are the underground oil wells in volume, their commercial value, and years it will take before Kenya can have it flowing across its pipelines.

But as the country toasted to President Kibaki’s surprise announcement that an Anglo-Irish oil exploration firm, Tullow Oil Company, had struck the precious commodity that accounts for 25 per cent of the country’s import bill, another burning question lingered in the shadows.

That Big Question — triggered by the bittersweet memories of how oil has made as many, and broken up just as many African states, whose leaders used oil proceeds as a tool to corruptly enrich themselves, and to buy, subdue and impoverish the governed — is whether it will not end up as a curse disguised in the big promise of untold wealth and happy life thereafter.

But it was the President’s big announcement of the find and the subsequent news conference by Energy minister Kiraitu Murungi, accompanied by several officials, that served to uplift the spirit of a nation scoured by tribal and political wars set off by sparks from the The Hague courtroom.

Speaking at Kenyatta International Conference Centre while presiding over a performance contract signing function for parastatals on Monday, President Kibaki warned the discovery was just the beginning of a journey. "It is the beginning of a long journey to be an oil producer, which typically takes in excess of three years," said Kibaki, who was presiding over a function at KICC.

Tullow

Kibaki announced that the oil discovered is what is technically referred to as Oil-Pay and was discovered at a depth of between 846 and 1,041 metres.

President Kibaki broke the news, saying significant deposits were discovered by Tullow Oil Company, after it made a breakthrough at the weekend.

Immediately after the news broke, Ministry of Energy top brass led by minister Kiraitu Murungi and PS Patrick Wanyoike summoned a press conference to shed light on the major breakthrough that is believed will impact the economy of the country in so many ways.

Full illustrations, including a video capturing the process of the precious fossil fuel, were displayed. Kiraitu even armed himself with two bottles of waxy oil samples scooped from the well.

Immediately the news broke, Kenyans flooded social media sites with debate making Turkana oil one of trendiest topics on Twitter, Facebook and blogs.

Kibaki, who veered off the topic of a function he was presiding — announcement of the results of performance contract for public agencies — to break the "good news" said the oil reserves had been discovered in Ngamia-1 well.

"We have good news for Kenyans. The good news is that we have struck oil from Ngamia-1 well in Turkana."

Tullow Oil is the same company that discovered oil reserves in Uganda and Ghana.

The company has been prospecting for the commodity in what was given as block 10 BB, and discovered the precious commodity in its first well of exploration.

And the visiting UK Minister for Africa Affairs Henry Bellingham could not hide his joy at the find by a British firm, saying bilateral ties could only be better.

However, the Government was quick to note that though discovery was good news to Kenyans, the commercial viability of the commodity could only be ascertained after multiple wells have been drilled and given positive results.

Exploration

Kiraitu reiterated the need for the country to exercise patience as further exploration goes on.

He said there was still a lot to be done before commercial viability of the deposits could be ascertained, long before eventual production.

"Do not come to us tomorrow asking where the announced oil is," said Kiraitu.

The minister, however, said Kenyans had reason to be optimistic following the revelation, saying Tullow Oil had informed him that the discovery was much higher that what it had found in Uganda.

"We have been very cautious about this. We have drilled 31 other dry wells in Isiolo and Lamu without success, but now we can authoritatively say we have oil," said Kiraitu.

He said, "The Ministry of Energy is to announce that initial results from the Ngamia-1 exploration well located in the Turkana County block 10BB has confirmed the presence of light waxy crude oil. This discovery is a promising first step for Kenya and is the start of a multi-well exploratory drilling campaign, which will be undertaken over the next three years."

The oil well has been drilled to an initial depth of 1,041 metres and it will continue to a total depth of about 2,700 metres to explore for deeper potential.

According to Tullow Oil Vice President for Africa Business, Mr Tim O’Hanlon, Kenya must ensure it manages the discovery carefully both in terms of revenue sharing, environment and the local community.

"Kenya has waited for a long time for this day. This is Kenya’s oil but we are here for the long haul and we need to manage the project carefully," he said.

Kiraitu said more than 10 similar prospects have been identified within the sub-rift basin and these initial results are encouraging for future drilling activities.

"Measures will be put in place to ensure the discovery of oil will be a blessing rather a curse like in most African nations," Kiraitu said.

As the country jubilated following the discovery, Kiraitu said the Government would employ a critical balancing act to ensure the resource benefits the country and the local community while making sure Tullow Oil is rewarded.

"For Kenya, the discovery is a major blessing and not a curse like other African countries. The oil will help turn around and modernise the economy. We will use the resource to lift our people from poverty," said Kiraitu.

Turkana

The minister belaboured the point that revenue generated from the resource would be used to transform poverty-stricken Turkana County that for years has been a hotbed of tribal conflict and cattle rustling pitting the Turkana against the Pokot.

The two communities pose the greatest danger to the extraction of the resource, which now propels Kenya’s stature in the world.

"Resources will be used to transform Turkana County and lift the community from poverty," said the minister.

Turkana Central MP Ekwe Ethuro said: " I am a delighted man. This is the year for Turkana County. The discovery will now help our people to relate with the national government."

"The picture of Turkana painted in the media is high illiteracy level, low access to education, health facilities and a starving population. This is an opportunity to reverse all these statistics," Ethuro said.

Turkana South MP Josephat Nanok was elated with the news of oil discovery.

He said the oil was discovered in Nakukulal area, known to locals as Ngamia, 12 kilometres from Lokichar in his Turkana South Constituency.

"This is good news not only for the county but the country," said Nanok.

Over in the heat and dust of Turkana County, residents in the area received the news with a lot of joy and optimism.

The pastoralist community in Turkana said they were elated with the State confirming that potential oil deposits have been found in their county.

"It is a blessing from the Almighty. This is big news to us. For a long time we as a community have lived hopeless lives but alas God has heard our cry for help," said Pius Ewaton, a local leader.

Immediately the news filtered in Lodwar, residents gathered to discuss the good news.

Residents and local leaders said the discovery in parts of Turkana is a breakthrough that will liberate them from the web of poverty, hunger, illiteracy, unemployment and poor infrastructure.

"We have suffered for so long. And now that oil has been found in our county, we are optimistic that we will eventually get out of this web," a local John Eyanae said.

But leaders have mixed reactions over oil discovery in Turkana with Councillor John Aule saying the discovery of oil may probably not benefit the community.

"Let us not be like other African countries where oil has been found but the residents have remained poor with multinational companies benefiting at their expense," Aule said.