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Oil Discovery in Turkana

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In 2012, the British Oil Discovery in Turkana company Tullow Oil announced the discovery of commercially viable oil reserves in the South Lokichar Basin of Turkana County, northwestern Kenya. The discovery marked a watershed moment in Turkana's history, offering the prospect of transformative economic development and resource revenues. However, the actual development of the resource has been slower and more contested than initially anticipated.

The South Lokichar Basin Discovery

The South Lokichar Basin is a geological formation in Turkana County with oil reserves concentrated in several fields including Ngamia, Twiga, and Amosing. Tullow Oil began exploration in the mid-2000s and by 2012 had drilled successful exploratory wells indicating commercial viability. The company estimated recoverable reserves at between 500 million and 1.3 billion barrels, potentially making Turkana among Kenya's most significant oil provinces.

The 2012 discovery announcement generated significant enthusiasm globally and nationally. International oil companies (including Total, initially, and later others) sought to acquire exploration rights and stakes in the discoveries. The Kenyan Turkana County Government anticipated significant revenue streams. International observers suggested the oil could be transformative for Turkana's economy and infrastructure.

Geological and Technical Aspects

The South Lokichar Basin is located at significant depth (over 2,000 meters) and in an arid, remote region with minimal existing infrastructure. Oil extraction would require substantial capital investment in wells, pumps, pipelines, and processing facilities. The light crude oil discovered is relatively high quality and in good demand on international markets.

The basin's geology presented some technical challenges, including relatively small average field sizes (compared to giant oilfields in other regions) and relatively high extraction costs compared to some competing sources. However, the oil was commercial at typical global oil prices.

Initial Development Plans

Initial plans called for rapid development of the fields. Tullow Oil proposed an Early Oil Pilot Scheme (EOPS) to extract and export limited quantities of oil relatively quickly, while longer-term development and pipeline infrastructure were planned. Later proposals envisioned a major pipeline (the LAPSSET corridor, also called the Lamu Port-South Sudan-Ethiopia Transport corridor) that would transport oil to a planned export port in Lamu, coastal Kenya.

The pipeline and export infrastructure were to be shared among multiple development projects (oil, coal, and general trade goods), making project feasibility dependent on coordinating multiple developments and finding sufficient throughput to justify infrastructure investments.

Expectations and Promises

The oil discovery was heralded as potentially transformative. Expectations included:

Local community employment in the oil sector Local supplier development and procurement (local content requirements) Infrastructure development (roads, electricity, water systems) Community benefit agreements and revenue sharing Government revenue from licensing, taxes, and royalties

These expectations generated hope among Turkana communities and at national and county levels. Politicians promised transformative development. Communities anticipated significant local employment and economic benefits.

Delays and Disappointments

However, development has proceeded much more slowly than anticipated. Tullow Oil's exploration and appraisal phase extended longer than initially planned, with additional wells being drilled and technical evaluations ongoing. The Early Oil Pilot Scheme, initially expected to begin production by 2015-2016, experienced repeated delays.

Changes in global oil markets, including oil price fluctuations (particularly the 2014-2016 oil price crash), made project economics less favorable and reduced company enthusiasm for investment. Regulatory challenges, including disputes over production-sharing contracts and government revenue terms, delayed approvals. Environmental and community concerns, including concerns about environmental impacts and land compensation, slowed project advancement.

By 2026, the oil sector in Turkana remained largely in exploration and early pilot production phases, far from the transformative development initially anticipated. This has generated significant frustration and disappointment among Turkana communities who were promised economic transformation.

Environmental and Social Concerns

Environmental organizations and human rights advocates have raised concerns about oil development impacts. Concerns include:

Potential water contamination (oil production generates wastewater that must be managed) Air quality impacts Land degradation and habitat loss Displacement of Turkana Pastoralism communities Inadequate community compensation and benefit sharing

These concerns have generated community activism and protests against oil development, particularly in 2017 and 2021 when communities blocked roads and sites to demand community benefits and contract transparency.

See Also

Sources

  1. Tullow Oil (2012). Tullow Oil Announces Commercial Success at Turkana in Kenya. Press Release. https://www.tullowoil.com/

  2. World Bank (2014). The Role of the Extractive Industries in Kenya's Economic Development. World Bank Economic Update. https://www.worldbank.org/

  3. Strathern, A. & Strathern, P. M. (2014). Oil and Pastoralist Peoples in Kenya. Anthropology Today, 30(2), 14-18. https://www.cambridge.org/

  4. Human Rights Watch (2015). Kenya: Oil Development Plans Threaten Pastoralists. Human Rights Watch Report. https://www.hrw.org/

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