Tullow Oil Set To Fire Employees Over Business Uncertainty
Tullow Oil, the company leading oil exploration operations in Lokichar Oil Basin in Turkana has announced plans to send home several employees over business uncertainty.
The company says that the current performance is unable to sustain the current wage bill, according to a memo to staff members dated Wednesday, January 5 by Tullow Managing Director Martin Mbogo.
“The Company has had to review and assess its financial performance and business operations to ensure resources are allocated in the most efficient way possible and to ensure that the current structure of Tullow meeting the demands of the business effectively. Due to this review it has become necessary to restructure the company with some roles becoming unnecessary,” noted Mbogo.
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The job cuts, according to Mbogo, will be carried out at all levels and cadres of the organization.
“Accordingly, the Company will pay all the affected employees a redundancy package comprising of the employ… salaries up to the date of termination, their redundancy severance dues, their termination notice or, in lieu of notice pursuant to the terms of the affected Employees’ employment contract and any accrued but untaken leave, ” added Mbogo.
Tullow is already mulling exiting operations in the country over uncertain future, according to recent reports by Reuters.
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The company in conjunction with Total have hired French bank Natixis to run the joint sale process for blocks 10BA, 10BB and 13 T in the South Lokichar Basin.
Last year Tullow announced that it was willing to sell up to 20 percent of its 50 percent stake in the blocks. Reuters reports that the company is now willing to sell the entire stake after disappointing exploration results in Guyana and production problems in Ghana. The project is valued at between $1.25 billion to $2 billion (approximately Ksh125 billion to Ksh200 billion).
The fields already produce about 2,000 barrels of oil per day as part of an early production system. In August last year, the company announced that it had exported its first cargo of 250,000 barrels.
Oil in Turkana was discovered in 2012, and it is estimated that the oil fields contain 560 million barrels in proven and probable reserves. Upon full exploration, miners can produce up to 100,000 barrels per day from 2022.
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