Acid test for NLC in oil corridor land payouts

The National Land Commission (NLC) walks a tightrope as the State prepares to shell out billions of shillings to owners of about 3,347 hectares of land along the Turkana-Mombasa oil pipeline corridor after a British firm Tullow Oil presented a clearer plan for production in South Lokichar Basin.

The acquisition of the massive tracts of land is expected to shine a brighter light on the acquisition process for public projects in the wake of past graft claims.

Speculation and complex land acquisition procedures have left the government battling missed construction deadlines and potential losses to the taxpayer through cost inflation on flagship energy and infrastructure projects across the country.

In 2018 top officials of the NLC, including the former chairman Muhammad Swazuri, were arrested to face charges over compensation for land acquired for construction of the standard gauge railway.

Spotlight is expected to shift to the NLC as the State prepares to pay out billions of shillings.

Internal documents seen by the Sunday Nation by Tullow show the oil project will require a massive 3,347 hectares of land.

Tullow has set aside 756 hectares for its central facilities area including waste management, warehousing, offices, construction and permanent camps, logistics laydown, and storage.

About 260 hectares for make-up water pipeline, 2,150 hectares for the export pipeline and another 181 hectares for additional facilities in Kapese, Lokichar.

Energy PS Andrew Kamau said last month preparations for the payouts have started.

“On Monday the work in Turkana begins...now that we have better clarity, we can then go ahead and acquire that land and purchase it from the people who are there,” he said after a meeting with Rahil Dhir, and Keith Hill, who are the chief executives of Tullow Oil and Africa Oil, respectively. Tullow and Africa Oil have a joint venture for the Turkana oil project.

Tullow officials reiterated this week the exploration firm had stepped up the search for a strategic partner to help implement a development plan for oil production in Turkana County.

This will pave the way for the planned development of a pipeline and oil processing facility in the basin that includes a $3.4 billion (Sh373.6 billion) investment for upstream activities.

Tullow, which entered Kenya in 2010, last month presented its long-awaited revised plan for oil production for approval.

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