Factors That Attract Tullow Company to Invest in Prospecting for Oil and Gas: a Case Study of Tullow Company, Kenya

Abstract

This study was conducted to obtain information on the two main objectives identified as: establishing the extent to which Kenya attracts Tullow Company to invest in prospecting for oil and gas and to determine the challenges faced by Tullow Company when engaging in international business for oil and gas. To achieve the intended objectives four respondents were targeted and an overwhelming three responded. The research design involved a case study of Tullow Company; the study used primary data which was collected through face to face interview by the researcher. An interview guide was used to collect primary data from Tullow Company. The study findings established challenges faced by Tullow Company when engaging in international dealings and came up with this recommendations; improved infrastructural facilities. The future of supply and distribution of oil will be constrained by lack of adequate rail transport wagon and import handling and loading facilities. It was found that there were no clear policies of oil and gas exploration in Kenya making it difficult for Tullow Company to conduct its operations. Poor transport network was a major problem in accessing exploration sites. This calls for construction of roads in arid and semi-arid areas to ease accessibility and transportation of goods and services. In order for Kenya to boost investment climate infrastructure is very essential. The study recommends construction of a new refinery that will facilitate production of more than a hundred barrels of oil which will be used by Kenya, Uganda, Ethiopia and South Sudan. This is very important in encouraging foreign investors to invest in the energy sector. There should be community involvement and participation to provide an understanding of the intensions of the company, activities and objectives of the organization to the community. Education, Training and development on oil and gas should be emphasized to equip human resources with important skills and competence on exploration of oil and gas. The Kenyan government should invest heavily on security through, securing the borders, providing proper training to the military and the police force, increasing intelligence and other security agencies. Foreigners need to be confident while investing in a foreign country and thus the government should take all the necessary measures to ensure that foreigners feel safe when investing in Kenya. The study suggests further research in an international Company similar to Plc Tullow in terms of size and areas of intervention. Findings can then be compared to assess if there are any commonalities or unique factors. One of the limitations of this study was that some of the employees had little experience about Tullow Company and its operations locally and thus limiting this study to important information about the challenges they had faced. The other limitation was conflict between the Tullow Company and the local communities who felt that they had been left out during negotiation. Most of the residents lacked skills and expertise needed in oil and gas exploration. The study was also limited to an in depth case study of Plc Tullow Company hence the findings are unique to this organization and cannot therefore be generalized to be a representation of similar organizations in the industry. Finally, this study was limited to information it took quite a long period of time for Tullow Company to allocate time for interview. Most of the data was collected from assistant managers rather than the CEO /managing director whom the researcher targeted for the interview.