Tullow struggles to please locals at its oil discoveries in Kenya
By Michael KavanaghAuthor alerts
a Tullow oil rig in Turkana county, northern Kenya
Hunting ground: a Tullow oil rig in Turkana county, northern Kenya, part of the promising Rift valley system
A clear public commitment to hiring and training local people is a key part of the strategy of Tullow Oil, Africa’s leading independent oil company that has led a wave of discoveries in Ghana, Uganda and most recently Kenya.
An extension of exploration in rift basins to the east of lucrative discoveries in Uganda led to its first successful well drilling in Kenyan blocks in 2012.
More
On this story
‘Terrifying’ oil skills shortage delays projects and raises risks
More diverse opportunity stops short at prospects for women
Sustainables jobs surge fades as wind farms face axe
‘Idealist’ who felt BP should play wider role
Lego scientists join drive to assemble young engineers
On this topic
London rallies after strong services data
Slideshow Underperforming oil groups
Tullow steps up transparency in reporting
Lex Tullow – no gusher here
IN Working in Global Energy
Energy groups must motivate millennials
Global oil giants face a fight to lure local talent
But by the company’s own admission, its fields cover one of the world’s most environmentally and culturally sensitive regions where local employment among impoverished and isolated communities is a critical issue.
Last year Tullow employed 100 permanent staff in Kenya involved an exploration campaign that could transform the country’s economy should it emerge as a viable commercial producer of oil. Of those directly employed, 70 per cent were Kenyan nationals.
But the real jobs boom has come from the company indirectly employing an estimated 2,000 subcontractors through its suppliers, of which nearly nine out of ten were Kenyans.
Even so, the scale of local job creation did not prevent Tullow Oil from being forced to temporarily abandon operations at two exploration blocks in northern Kenya last October. This was after protests by local Turkana people led by James Lomenen, a local member of parliament, worried about the influx of outside workers at Tullow sites.
Tullow insists that large numbers of jobs have been created for locals in the area. But skills shortages still skew some job roles towards other Kenyan and expatriate outsiders seeking to develop its blocks.
Last year Turkanas made up close to 60 per cent of supplier staff and Kenyans in general nearly 90 per cent. But, while virtually all unskilled supplier staff are local, just a quarter of the local skilled workforce were Turkana.
According to the company it is “simple business sense” that, in the long-run, Tullow and other operators in the new oil province aim to respond to political demands by developing local workforces and suppliers rather than relying on more expensive expat workers and more costly imported materials.
“However, we also have to manage expectations – oil and gas is a highly technical and mechanised sector which means that opportunities for direct employment can be limited,” a Tullow spokesman says. “This is why we do as much as we can to encourage indirect employment in our sector through our contractors, subcontractors and across our supply chain.”
