Turkana: The County Government of Turkana has initiated discussions with Gulf Energy regarding the fiscal terms for planned oil and gas exploration activities in the South Lokichar Basin. These discussions are being led by Deputy Governor Dr. John Erus and Gulf Energy Country Manager Franklin Juma.
According to Kenya News Agency, the initial consultations held on Tuesday covered crucial topics such as taxes, budgets, revenue, and financing, all guided by existing legal frameworks like the Finance Acts and the Field Development Plan (FDP). Dr. Erus emphasized the importance of open and honest dialogue to ensure that Turkana County benefits from the oil extracted within its jurisdiction.
The county has established a special committee tasked with identifying all potential revenue streams from the exploration activities and advising accordingly. Governor Lomorukai has instructed this committee to thoroughly examine all proposals related to shareable revenue. Dr. Erus highlighted that the County Government’s proposals will adhere to legal guidelines, with the County Attorney’s Office providing continuous legal advice.
Discussions primarily focus on the imposition or variation of fees and charges related to land surface, services rendered by the county, the environment and natural resources utilized, energy, waste generation and disposal, among others. Dr. Erus reiterated that each proposal would be evaluated based on legal provisions and the optimal way to harness revenue potential.
Gulf Energy presented that the first consignment of export-ready oil could be ready by December 2026, with the initial oil revenue anticipated by February 2027. The presentation also revealed plans to drill up to 43 wells in the first year of operation, with additional wells to be considered in future exploration phases.
The consultative meeting also included contributions from County Assembly Members, Finance County Executive Committee Member (CECM) Roseline Aite, and chief officers and directors from various departments such as Lands, Revenue, Energy, Mining, Trade, Economic Planning, Environment, and Legal Services, all of which are directly involved in the oil exploration process.
