Leaders in blame game after Tullow Oil suspends operations

By Michael Wesonga

Turkana, Kenya: The standoff between Turkana residents and the Tullow Oil Company has threatened to put a damper on the palpable excitement that greeted discovery of oil reserves in the region.

Residents recently held a demonstration protesting alleged discrimination in employment and awarding of tenders and transport contracts by the company leading to suspension of oil drilling in the region.

The company reportedly took the drastic action after its staff were allegedly roughed up by the host community that is demanding eviction of non-locals from the Agete site located a few kilometres from the Twiga 2 drilling site.

The standoff has now seen area leaders seek to apportion blame as to who is responsible for the suspension of the operations.

Turkana South sub-County Commissioner Kodoh Elijah Odondi, for instance, says the political leadership in the area is to blame for the row between Tullow and residents.

Mr Odondi told The Standard that the suspended operations are costing the Kenyan Government approximately USD250, 000 (Sh21,250 000) a day.

He observed that some of the drilling machines have been hired from countries like Italy and Egypt and would have farreaching financial ramifications.

“The tussle is three pronged touching on employment, issuance of tenders and hiring of private vehicles by the company,” he revealed.

Semi-skilled workforce

He said the locals wants to be allocated 100 per cent of jobs in the skilled and semi-skilled categories as senior positions have been taken by non-locals. 

“The locals are demanding for more contracts but they forget that the company already has pre-established contracts with other parties like the Government that cannot just be terminated on demand by locals,” he explained.

The sub-county boss said irregular termination of the contracts may lead to legal suits that may not only hurt the company financially, but may also taint its reputation.

He insisted that the company has adhered to the 70 per cent employment agreement.

“The company has three cadres of employees; skilled, semi-skilled and the unskilled. Seventy per cent of the semi-skilled and unskilled workers comprise members of the Turkana community,” he reveals.

Odondi pointed out that it was wrong for residents to villify the oil company yet they are the ones who are going to be the greatest beneficiaries of oil drilling activities.

“We should not be treating them the way we are doing now because they have given hope to the people of Turkana. This is not the way to return the favour,” Odondi said.

However, locals led by Lokichar Ward Representative Rapahel Loperito said residents constitute only 57 per cent of the oil company’s work force, with the rest being non-locals and expatriates.

According to him, the company has reneged on the 70/30 per cent employment agreement that would have seen 70 per cent of jobs go to locals after a 50/50 deal failed.

He said the highest ranked Turkana in the company is a Community Liaisons Officer (CLO), and insisted   drivers, field officers and human resource personnel should be reserved for residents.

He, however, criticised recent demonstrations in the area that had led to suspension of oil drilling in the region.

 “Although Tullow cannot employ the entire community, there ought to have been thorough consultations on the matter before resorting to extreme measures,” he said.

He insisted that Turkana South MP James Lomenen and his Turkana East counterpart Nicholas Ng’ikor should have used other avenues to have their grievances addressed instead of leading street protests.

But Odondi insisted that it would not be prudent for all professionals in Turkana to seek employment at Tullow as they are also required in other sectors.

He also said locals leaders needed to appreciate the fact that not all locals had the necessary qualifications to be employed by Tullow.

“Even filling Government jobs have been a problem in the past. You can remember how it was very difficult to get only 12 nurses from the area. We only got two and had to source for the rest from other areas,” he recalled.

He cautioned that as much as the community may clamour for increased business engagement they must bear in mind that the company has to adhere to strict procurement regulations to maintain international standards.

The administrator said that Tullow has spent over Sh75 million in business engagements with four organised groups in the previous year.

 He cited Katioko BGP Camp that has been supplying goats to locals, Aberu Women Group (vegetables), Nikon Nikon Petrol Station (fuel) and yet another group that supplies the firm with water.

“Members of the community formed the Kapese Transport Association that has turned out to be a brokerage transport firm for Tullow because its lacks capacity to provide vehicle hiring services,” he stated.

He said the assocition had turned out to be a go-between private car dealers that can directly provide services to Tullow.

Car tenders

“It is coercive to demand that all car tenders pass through Kapese that charges a registration fee and a commission,” he said.

 But Loperito thinks that is the only way the community can empower itself if it is to grab a share of the business opportunties that have been made possible by oil exploration activities in the region.

“It is equally dangerous to offer the contract to a single fleet company that will end up as a monopoly and whose proceeds do not benefit the local community,” he said.

Isaac Eregae, Turkana South sub-county Advisory Committee chairman, said the local leaderrs who led the protests want to gain political mileage from the dispute.

He accused the MPs of an ambitious plan to control everything including tenders as opposed to the actual demands of the community, which is asking for increased corporate social responsibility, employment, salary increment san and the 70 per cent employment agreement.

But the legislators denied they had any vested interests, adding they could also choose to trade with Tullow as individuals since they were also residents.

 “I invite any investigations into whether we have vested interests.I have none. Our interests are those of the community,” said Lomenen.

Although the MPs say the demonstrations were peaceful, police say the protestors looted the oil rigs and destroyed property.

Incitement charges

To this effect, the MPs, who had sought a permit for the demonstrations and subsequently led them, are to be arrested and charged with incitement and robbery with violence.

The two MPs were last week summoned to Turkana County CID offices where they were grilled before the charges were proffered.

However, the MPs went into hiding and their scheduled appearance at a magistrate’s court in Lodwar last Friday aborted.

Tension was high outside the courts as locals planned further demonstrations to protest against what they termed unfair persecution of their leaders.

Anti-riot police had to be deployed around the courts as agitated locals demanded to be told the whereabouts of their MPs.

They camped at the courts for the better part of Friday before they were told that the case had been referred to Director of Public Prosecutions (DPP) Keriako Tobiko in Nairobi. Tullow Oil, on the other hand, has maintained that it takes its relationship with the local community “extremely seriously”.

“The decision to suspend exploration was taken to prevent further escalation of the demonstrations,” it said in a statement sent to newsrooms.

The company said it shut down operations to pave the way for discussions to resolve the issues raised by the Turkana.

“We are working closely with the local communities and county and national governments so that the company can resume work on Blocks 10BB and 13T as soon as possible,” it added.

The company said that currently, it employs over 800 people from the Turkana region out of the 1,400 employees it has in Kenya.