Hopes of striking oil rise in Nyanza

By Evelyn Kwamboka and Nicholas Anyuor

Indications are increasing by the day that large part of Nyanza, Western and Rift Valley regions could be floating on a vast oilfield.

The company that earlier this year excited the country with news that it had discovered large quantities of oil in Turkana, Tullow Oil Plc, has intensified the search for the black gold in Nyanza.

It hopes to complete the exploration in less than 10 years.

Tullow has already started working on the preliminary stages of the project within the mapped areas that are believed to contain oil deposits.

The initial survey will cover Nyakach, Suba, Rachuonyo, Nyando, Bondo, Homa Bay, Kericho, Nandi, Vihiga and Busia.

The company recently held a consultative meeting with a group of leaders from Nyanza.

Officials from the Ministry of Energy attended the meeting together with MPs Pollyins Ochieng (Nyakach), Otieno Kajwang’ (Mbita) Fred Outa (Nyando) and Martin Ogindo (Rangwe).

Selecting sites

The company told the leaders it was in the process of contracting a surveyor before computing data and selecting sites.

It also said a production contract for exploration of oil has already been signed with local communities.

The contract, which has been lodged with the Ministry of Energy and the Parliamentary Committee on energy, gives local communities the right to be engaged throughout the exploration to be carried out by the Canadian company.

MPs who attended the meeting wanted to know the company’s policy on employment especially for locals and the contents of revenue sharing agreements with the Government.

Measures taken to preserve and conserve the environment were also discussed at length during the meeting.

Nyakach MP confirmed this, saying there is need for the community and all stakeholders to be engaged in the process.

“It is important for the community to know how it will benefit from the project and how people will be compensated for their land,” he says.

Paramount agenda

Mr Ochieng said grassroots community meetings with individuals and groups will help sensitise the community on how important the project is and how they will gain in terms of economic empowerment.

Tullow has already promised to set up scholarships to educate children in the area if oil is found in the region.

During the meeting with MPs, the company officials revealed that engagements with the local community would be a paramount agenda and that they have already started establishing a scholarship scheme to help develop local capacity.

The company also gave an assurance it would compensate landowners in cases of acquisition or loss of use.

The assurances made by Tullow could be a deliberate attempt to forestall the recurrence of what happened in other project areas they are involved in.

Recently, 65 councillors in Turkana demanding to be told what the community’s stake was in the discovery of oil in their area, were stopped from accessing the oil exploration sites.

They claimed there was no communication about the sharing of revenues from the oil.

Led by Turkana County Council Chairman David Ekod, the civic leaders claimed there was no communication from the company on how to share revenues to be collected, once drilling starts.

The meeting with Nyanza MPs and community leaders was informed that work on block 12B was at a preliminary stage and patience was needed.

Tullow moved to the area barely six months after President Mwai Kibaki announced the company had discovered oil deposits in Turkana’s Ngamia I area a few months ago.

Large oil deposits were discovered in Nakukulas area, 12 kilometres from Lokichar in Turkana South constituency.

Up beat mode

Local leaders and professionals in Kisumu County are in an upbeat mode about the prospect of oil being found in the region even though the Nyanza Provincial Geologist, Martin Nyakine cautioned that what was seen in Nyakach might not be oil.

Locals argue that oil in Nyakach will add value to Kisumu County, which already has a number of resources such as sugarcane and rice.

Molly Ali, a professional working at Maseno University, says that producing oil from the region will not only boost the national economy, but will also change the fortunes of the people of Kisumu County.

She says a large number of people in the county, particularly the youth, who are unemployed and an oil find would open up opportunities for employment.

“This is something that we should be proud of. We know it will bring a change to the lives of people in this county and living standard will automatically improve,” she says.

However, Mr Nyakine cautions over the prospect, saying research must be carried out first to ascertain there is oil.

He gives the example of claims last year that there was oil in Nyatike district in Migori County, which turned out to be false.

“The liquid that was seen could be something else and not oil as people might think. We have to be cautious and patient enough to wait and see what will be there,” he cautions.

But Nyalenda Councillor Jackton Onunga prays the oil is discovered in the area since it would attract investment to Kisumu County.

Mr Onunga says if oil is found, women and youths who have been idle at home would be economically empowered and Kisumu County would also be enjoying the earnings from exports.

“We shall export oil and this will make the region a busy one. We shall be among the richest counties in Kenya as investors will now see Kisumu as an investment destination,” he predicts.