Kenya_ Tullow oil intercourse

Tullow Oil operating in Turkana county Kenya has so far incurred nearly $2.0 billion (Sh200 billion) in exploration costs all to be recovered from the Kenyan government once oil production begins in 2022.
Even though Tullow Oil shares a work program and budget update with the Kenyan government on both a quarterly and annual basis, the Kenyan government cannot vouch for the authenticity of the reports in the absence of audited reports.
The government is yet to begin auditing these expenses six years since Tullow Oil announced in March 2012 Kenya’s first commercial oil discovery.
The Ministry of Energy has since November 2013 opened searches for a firm to inspect the exploration costs of Tullow Oil, but none of the applicants for the job had expertise in the field, says the government.
And now six years later (once again) the government is putting together the terms of reference to then put out an expression of interest call.
The mind boggles. There are hundreds of these auditors out there who conduct these audits on Shell, BP, Total and all the big players.
Seems the bed Tullow and the ministry of energy share is far too comfortable at this stage

Walianza kuikamua hata kabla itoke kwa ardhi:D:D

Ndio Uhuru was very angry when governor Nanok insisted that Turkana people must get 10% of the revenues and was initially proposed and agreed upon before the exploration even began.
Uhuru suspects that Tullow is inflating costs so that they keep most of the revenues once the oil pumping begins. Instead of going after Tullow and threatening to shut them down for this he chose to attack governor Nanok calling him very crude names in public.
Nimedanganya?

The crude was the lube!

Even if he cared Kenyatta is more likely to side with British interests anyways.

The president speaks last check out what the governor said to make him react.

I hope hio mafuta itakuwa blessing na sio curse. Huyo governor alikuwa ameongea vibaya yenyewe. But anyway, hao watu wa Turkana have been marginalized for a very long time. I am afraid it might be very easy for any stupid foreign power to radicalize and incite them against the government. Vile huyo governor alikuwa anaongea ilikuwa mbaya tu, and I hope the government is prepared to deal with ill intentioned foreign powers, and also find a way to win the hearts of those nomadic tribes. Nimecheki tu kapost @Mjuaji ameweka kuonyesha hali ya road kuelekea Mandera. Mbaya tu. Kudeal na wale watu wajielewe wako Kenya ni ngumu. But all in all, wherever oil is discovered, it has been a curse. Mafuta=vita mara hio hio.

Whoever negotiated such a deal should not be sitting in any public office. Exploration costs are supposed to be the burden of the investor. If the government has to pay Tullow for exploration costs (in cash and not equity) then Tullow should have token ownership of no more than 5% in the project.

The only thing I hear that was a little controversial is saying “…wale wako na macho hawataki kuona, wale wako na masikio hawataki kusikia.” And he didn’t say “…wewe una macho na hutaki kuona.” to make it insulting.
I think Uhuru overreacted because the crowd was in full support of their governor. Below is the speech that I’m referring to.

This is standard oilfield practice. Mark ups of 300 per cent for equipment and services not uncommon. Even with expat personnel. A drilling supervisor will be paid $2500 per day ,… yes $75 000 per month .
Drilling costs at $1 million per day

Source? Times have changed, the largest company in the field is sending workers home. Visit glassdoor.com and look at the salaries. A drilling engineer does not make much more than just over US$100K. At most a contractor might could earn 1.5 times that. It goes without saying mtu wa kazi ya mkono likely earns less. The good old days are long gone unless of course its a ripoff as seems to be the case in Kenya.

This is Kenya,ask yourself why Tullow is so determined to have a pipeline constructed,by the time the guys are done with us,we will be worse with huge loans which of course we will pay with our oil .government is just in bed with the oppressors

The government should be calling the shots on what the costs ought to be or ask Tullow to leave. The oil curse is beginning to manifest itself thanks to some greedy Africans. Such things should make every Kenyan very angry, but they have Kenyans figured out. We are passive and tolerant even when theft takes place in front of us in broad daylight and our short memories make the anger dissipate as soon as it appears.

At the coast, the Ksh 38 billion a year fleecing is kicking off in high gear to enrich a few greedy africans for a guaranteed 25 years at great cost to the environment and the health of the local population.

Sending workers home because of price of crude oil. Which has slowly picked up. A drill engineer will make more than $US100K. Usually the foremen ( Leads) make 80-100K. Glassdoor is iffy at times.

Its a huge operation around a rig. They have 24 hours lab support, back office operations, front office operations at base monitoring costs, IT staff, costs associated with the platform eg drainage systems, etc. Remember that they are continuously hitting blanks. Not every hit is bullseye. 20% is really good. $1M a day is nothing. You cant compare the budget of a mining operation to that of choices pub.

Who forced our government to sign the deal? Why complain now?

some deals are signed when kick backs are assured to a few high ranking government officials, In December 2017, The government issued an invitation to tender for a company to review the Petroleum Bill to see if it met international requirements. This was with money (KEXPRO). This process will take months before contract is awarded, and then the review will take many more months. Delays,they are technically renegotiating their cut before the tender id is awarded.

Nice thread. Mark my words. The oil will not benefit Kenya in anyway.

hii oil nitawahi weka kwa nduthi kweli one day?

The oil( is) will create an exclusive club of super rich individuals ,the guys will do anything to protect this trade,case study is Nigeria.