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Thursday, August 1, 2013

Why Kenya should mitigate security risks in oil, gas sector


  Visitors during a tour of the oil rig at Ngamia 1 in Turkana County on April 05, 2012. FILE
Visitors during a tour of the oil rig at Ngamia 1 in Turkana County on April 05, 2012. Oil and gas companies operate in marginal areas where insecurity is common. FILE 
By LOIZA KABIRU
In Summary
  • It is imperative that the government partners with the civil society, host communities and companies to develop comprehensive security risk framework that incorporates the UN’s guidelines on business, voluntary principles, human rights and security.

The fact that the government intends to create an enabling environment for investors to engage profitably and predictably in the exploration, extraction and production of natural resources is not a secret.
Priority seems to have been given to the development of legal and policy regulatory frameworks.


The government through the Ministry of Energy and Petroleum and other partners such as the World Bank and the International Monetary Fund (IMF) are working to fast track among others, the energy Bill and its policy, the review of archaic laws such as the Petroleum (Exploration and Production) Act 1986 and the Mining Act 1987 to ensure the necessary structures are in place for enhanced natural resource governance.
However, despite these noble measures by the government, the issue of security of person and property specific to this sector, do not seem to have been addressed adequately.


This anomaly has occurred despite the fact that all the oil and gas companies operate in historically marginalised and high security risk areas.


These areas have been plagued by incidents of cattle rustling and banditry, community conflicts, proliferation of small arms, presence of militias such as Al-Shaabab and the Mombasa Republican Council, food insecurity, land legacy issues and inadequate policing services.


Disputes
Of late, disputes between some MPs and governors on matters such as who should be consulted about jobs and other local issues have become a growing concern to companies in the upstream sector.


Many firms in these areas in addition to contracting private security service providers also benefits the Administration Police and the Kenya Police Reservists.


This means that officers, who in the past served local communities, have now been contracted by the companies leaving them vulnerable.


It is imperative that the government partners with the civil society, host communities and companies to develop comprehensive security risk framework that incorporates the UN’s guidelines on business, voluntary principles, human rights and security.


The principles require States to take certain steps to ensure that they protect human rights.


They also outline measures that States can take to support companies working in conflict areas such as helping them at the earliest opportunity — usually at the exploration stage — to identify, prevent and mitigate human rights related risks.


States are also required to work with companies to address risks of human rights abuses with focus on gender-based and sexual violence.


The voluntary principles are non-binding tools which were developed in 2000 by governments, companies in the extractive and energy sectors and NGOs.

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