KENYA: Tullow Oil Faces $2.03B Suit For ‘Environmental Violence’ in the South Lokichar Basin

The Environmental and Lands Court in Lodwar, Turkana County, Northern Kenya, where British explorer Tullow Oil has conducted oil exploration since 2010, is poised for a significant environmental lawsuit. On Wednesday, March 6, 2024, 43 residents, including children, filed a case seeking compensation. The plaintiffs allege that the oil exploration activities of Tullow Oil have harmed their environment and livelihoods through hazardous environmental practices and other omissions as the company conducted operations in the area.

The thirty residents, along with thirteen minors, additionally claim that the oil explorer’s actions have not only adversely affected the environment for the present generation but also for future generations. Consequently, the requested amount will establish an environmental bond, serving as a financial guarantee to address any environmental damage, including associated remedial costs.

The suit comes even as the company reported receiving a licence extension letter from the Energy and Petroleum Regulatory Authority (EPRA) by three months from 1st March to 30th June 2024. Tullow Oil which is awaiting evaluation of its Field Development Plan (FDP) by the Ministry of Petroleum last week reported having written off exploration costs worth $17.9M in blocks 10BB and 13T Kenya where the withdrawal of the JV Partners last year led to a re-assessment of risks associated to reaching FID.

In 2024 Tullow Oil has set aside a capital expenditure in Kenya of $10 million and exploration spend of $20 million.