348
W. Karanja and N. Njenga
Though commercial production has not commenced, Kenya launched
its Early Oil Pilot Scheme (EOPS) in June 2018 in a bid to test demand
in the international market. The Scheme entails the road transportation
of stored crude oil drawn from the testing oil wells at a production
rate of 2,000 barrels of oil per day over two years and then transported by truck over 1,000 kilometres from Northern Kenya south to
the Coastal port of Lamu. However, within three weeks of the euphoric
flagging-off of EOPS in June 2018, community members blocked trucks
from transporting oil from the Ngamia 8 site in Lokichar.
19 They held
violent protests over several issues including job opportunities, the award
of tenders, insecurity and the community’s share of proceeds from the
oil. This led to the suspension of operations, evacuation of critical
staff by the Operator (Tullow Oil) for an almost 7-week period and
substantial financial losses for the Government, estimated at approximately USD 40 million. The impasse between the community and
the investor was eventually resolved, in part due to timely intervention
by the Government and the gazettement on August 7, 2018, of the
Turkana Grievances Management and Inter-Ministerial (Escalation and
Support) Committee, whose mandate is to facilitate engagement with
the local community with a view to providing collaborative solutions to
any emerging issues associated with EOPS.
20
11.2.2 SLO Issues in the Natural Gas Sector
in Tanzania
Tanzania is a natural gas producer. Though Tanzania is not an oil
producer, it aims to boost investment in cross-border pipeline transport
for Uganda’s oil, Uganda being a landlocked oil producer. In May 2017,
19 Senelwa, Kennedy. 2018. “Kenya Oil Trucking to Resume on August 22”. The East
African, 2018. https://www.theeastafrican.co.ke/business/Kenya-oil-trucking-to-resume-on-Aug
ust-22/2560-4710984-ewju0t/index.html, accessed May 27, 2020.
20 Senelwa, Kennedy. 2018. “Kenya Oil Trucking to Resume on August 22”. The East
African, 2018. https://www.theeastafrican.co.ke/business/Kenya-oil-trucking-to-resume-on-Aug
ust-22/2560-4710984-ewju0t/index.html, accessed May 27, 2020.
W. Karanja and N. Njenga
Though commercial production has not commenced, Kenya launched
its Early Oil Pilot Scheme (EOPS) in June 2018 in a bid to test demand
in the international market. The Scheme entails the road transportation
of stored crude oil drawn from the testing oil wells at a production
rate of 2,000 barrels of oil per day over two years and then transported by truck over 1,000 kilometres from Northern Kenya south to
the Coastal port of Lamu. However, within three weeks of the euphoric
flagging-off of EOPS in June 2018, community members blocked trucks
from transporting oil from the Ngamia 8 site in Lokichar.
19 They held
violent protests over several issues including job opportunities, the award
of tenders, insecurity and the community’s share of proceeds from the
oil. This led to the suspension of operations, evacuation of critical
staff by the Operator (Tullow Oil) for an almost 7-week period and
substantial financial losses for the Government, estimated at approximately USD 40 million. The impasse between the community and
the investor was eventually resolved, in part due to timely intervention
by the Government and the gazettement on August 7, 2018, of the
Turkana Grievances Management and Inter-Ministerial (Escalation and
Support) Committee, whose mandate is to facilitate engagement with
the local community with a view to providing collaborative solutions to
any emerging issues associated with EOPS.
20
11.2.2 SLO Issues in the Natural Gas Sector
in Tanzania
Tanzania is a natural gas producer. Though Tanzania is not an oil
producer, it aims to boost investment in cross-border pipeline transport
for Uganda’s oil, Uganda being a landlocked oil producer. In May 2017,
19 Senelwa, Kennedy. 2018. “Kenya Oil Trucking to Resume on August 22”. The East
African, 2018. https://www.theeastafrican.co.ke/business/Kenya-oil-trucking-to-resume-on-Aug
ust-22/2560-4710984-ewju0t/index.html, accessed May 27, 2020.
20 Senelwa, Kennedy. 2018. “Kenya Oil Trucking to Resume on August 22”. The East
African, 2018. https://www.theeastafrican.co.ke/business/Kenya-oil-trucking-to-resume-on-Aug
ust-22/2560-4710984-ewju0t/index.html, accessed May 27, 2020.