Kenya’s Block 10BB and 13T operator has said it is working to end a dispute with Shaaba Civil Engineering & Construction contracted to undertake works at six respective social investment projects on public facilities in Turkana.
The contractor who has accused the oil explorer of owing it payments approximately 50 million shillings of the 130 million shillings contract earlier this week locked out students a dormitory at Kainuk Mixed Secondary School, two classrooms at Karoge Primary School, the Katilu Girls Secondary School science laboratory, and locals out of a dispensary and hospital at Kasuroi Trading Centre and Lokichar town.
According to the oil explorer the dispute which has been taken through the high court is to be determined by arbitration after Tullow Oil and Shaaba have measured the work done.
“The High of court made a finding that there was a dispute between Shabaa (Contractor) and Tullow (Client) which ought to be determined by arbitration. Pursuant to a Court Order, the six respective public facilities, which were under the contract were placed under the custody of Contractor to allow for the inter-party measurement of the work done,” Tullow Oil said in a statement sent to OilNews Kenya.
Despite the closure of the facilities Tullow says Shaaba has complied with the court’s order and direction on the dispute and is committed to resolving the matter within the provisions of the laws of Kenya.
In the last 5 years, Tullow has successfully implemented multiple social investment projects in the water, health, environment and education sectors worth in excess of half a billion Kenya shillings (KES 500,000,000) in Turkana County.
Turkana County is the epicenter of Tullow Oil’s activities with 750 million barrels of recoverable oil reserves discovered to date with an upside of 1 billion barrels. The Kenya joint venture hopes to commence transportation of crude oil from storage facilities in Lokichar to the Kenya Refineries Limited under the early oil pilot scheme programme later this month at a rate of 2000 barrels a day.