Challenges of strategy implementation in Tullow company, Kenya
Many oil and gas companies especially the BG Group Plc (British Multinational oil and gas company) are reluctant to proceed with the drilling of exploration wells due to lack of natural gas terms in the current model production contract which has a bias on oil terms. Need for new, breakthrough technologies that can help find, develop and produce more oil and gas. This creates a major a hindrance for oil and gas companies to effectively drill oil and gas in developing economies like Kenya. The study sought to determine the challenges of strategy implementation by Tullow Company, to achieve this objective, the study used a case study of Tullow Company and the primary data was collected using an interview guide that sought answers through open ended questions gathered from the interviewees. Primary data was collected from all the three interviewees as planned. These included departmental heads of Finance, Marketing and Operations. Data analysis was done using content analysis. The study concludes that the main challenges facing Tullow Company in strategy implementation include failure to involve the local community, insecurity and political instability. These challenges according to the findings are a key hindrance towards the realization of strategy implementation. Poor means of communication between the head office and the drilling points led to lack of effective coordination of activities and information flow. To deal with these challenges, Tullow Company in intends to engage with the local communities through training. This will enable them to understand and cooperate with other employees of Tullow since they feel as part of the process. Oil producing communities must feel tangible benefits both through employment and through local tenders for goods and services. The revenue that Kenya derives from oil must be shared out between the national government, the county government and regional committees where the oil is found. The government should consider reducing barriers through creating an enabling environment in order to provide conducive environment for attracting local and international partners. This is because investors play an important role in creating job opportunities and domestic tourism, this play an important role in growth and development of an economy. The study recommends that the legal and regulatory framework in Kenya should be improved. A new version of Kenya's petroleum law was last revised in 1986. Currently; it is being drawn up, notably in the light of new environmental requirements this will create a new upstream regulator and strengthen a number of other bodies, with the aim of leaving the ministry in charge of policy and creating a petroleum directorate responsible for ensuring that companies stick to the terms of their contracts. The existing National Oil Company (NOCK) should be the joint venture partner with oil companies in Kenya. The study limited itself to a case study of Tullow Company and thus the findings obtained cannot however be used to make generalization for all the international oil drilling companies in Kenya.