SH2.5BN EXPLORATION

Lamu residents demand compensation from gas firm

Firm announced no gas found after a year of exploration.

In Summary

• Say their fields were left in an unusable state.

• Company says it deposited money in landowners' accounts every three months.

Residents whose land was marked for gas exploration in Pate island, Lamu East, want compensation.

No quality gas was discovered. 

The gas exploration drilling was undertaken by Zarara Oil and Gas Limited—a subsidiary of Midway Resources International—for about a year. 

The exploration, which cost Sh2.5 billion, started in April last year and ended in March when the company announced that there was no commercial quality gas.

 

The announcement put to rest speculations that the region could be rich in gas deposits. There had been hopes that if found to be adequate, the gas would help boost Lapsset through increased power generation.

Fifty acres were acquired for the exploration. The landowners and those bordering the project site now want to be compensated. 

Speaking to journalists in Lamu on Monday, residents said the firm's equipment was transported through their land. 

Spokesperson Omar Athman said they had high hopes and failing to compensate them because no gas was discovered is unfair and goes against their agreement with the explorer. 

“The company knows they used our lands for various purposes and its only prudent that they pay for that, gas or no gas. Some of the equipment was so heavy and have destroyed our lands. We deserve compensation,” he said.

But Zarara country manager Peter Nduru said the firm met all requirements set by the community even before the licence was issued. 

 

He said the company paid all those whose land was used in the year-long expedition. Nduru said the money was wired to their accounts every three months as agreed. 

He said those claiming compensation are not genuine and have ulterior motives.

“We strived to foster a good relationship with the local community while there. We, therefore, don’t understand these new demands as no one has raised such an issue with us,” the manager said.

Nduru, however, said they are not done with exploration in Lamu as they believe there is better quality gas in one of the wells being researched on.

Edited by R.Wamochie

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