Kenya: Delonex Energy and Africa Oil-01/ Kerio Valley

Date Filed
06 Aug 2019
Status
Open
Phase
Dispute Resolution (DR)
Country
Kenya

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Compliance
CURRENT Status
Mediation (DISPUTE RESOLUTION)

Complaint Overview

Complainant

Kerio Valley Community Organization (KVCO) on behalf of local community members from the Kerio Valley. They are supported by a Canadian-based legal clinic called Justice and Corporate Accountability Project (JCAP)

Concerns

Lack of information and stakeholder consultation, failure to address relevant project risks, breach of IFC Sustainability Framework and PS, and impacts on land, livelihoods and on the environment.

Cross-Cutting Issues
Risk Management Resource Efficiency Community Health and Safety Land Resettlement Land Loss of Livelihoods Access to Information Policy

Project Information

Region
Sub-Saharan Africa
Institution
IFC
Name & Number
Delonex (33557) and Africa Oil (36699)
Company
Delonex Energy Limited and Africa Oil
Sector
Mining, Oil, Gas and Chemicals
Department
Other
Category
A
Commitment

$60mil Equity- Delonex, $50mil Equity- Africa Oil

Synopsis

Project Overview

In 2013, IFC made a USD 60 million equity investment in Delonex Energy Limited to provide support for the acquisition, exploration and development of Delonex’s assets in their East and Central Africa portfolio, targeting oil and gas exploration led opportunities. 

In 2015, IFC made a USD 50 million equity investment in Africa Oil to support its oil and gas exploration and appraisal activities and general working capital requirements, primarily aimed at advancing the appraisal of the South Lokichar Basin in Kenya. 

Both Africa Oil and Delonex partnered with Tullow Oil to conduct exploration activities in Block 12A which encompasses 5 counties including Elgeyo Marakwet, Baringo, West Pokot, Turkana, and Samburu, in Kenya. 

Complaint

The complaint was submitted to CAO by the Kerio Valley Community Organization (KVCO) on behalf of local community members from the Kerio Valley. They are supported by a Canadian-based legal clinic called Justice and Corporate Accountability Project (JCAP). The complaint raises concerns about Delonex and Africa Oil’s oil and gas exploration activities in Block 12A, located in the Kerio Valley, Kenya. The concerns relate to lack of information and stakeholder consultation, failure to address relevant project risks, breach of IFC Sustainability Framework and impacts on land, livelihoods and on the environment. 

CAO Action

CAO found the complaint eligible in September 2019 and began an assessment of the complaint. During the assessment, the Complainants and Delonex chose to address the issues through a dispute resolution process, while Africa Oil indicated that they would not participate in this process.
 
CAO extended the assessment period beyond 120 working days due to the need to establish contact with the former project operator of Block 12A, Tullow Kenya B.V..  Tullow shared their perspective on the complaint with CAO and asked for their views to be reflected in the assessment report. They also expressed that they may participate in the CAO-facilitated dialogue process between the Complainants and Delonex, possibly as an observer, should the parties agree on the rules of engagement.

The assessment report is available under “View Documents” below in both English and Kiswahili, as well as IFC’s formal response.

Status

A dispute resolution process is underway.

Status as of November 3, 2020

Case Documents

  • Dispute Resolution

    Complaint
    CAO Complaint - Kenya
    Jun 06, 2019
    English
    CAO Complaint - Kenya
    Assessment Report(s)
    CAO Assessment Report Delonex and Africa Oil
    Oct 01, 2020
    English
    CAO Assessment Report Delonex and Africa Oil
    CAO Assessment Report Delonex and Africa Oil
    Oct 01, 2020
    Kiswahili
    CAO Assessment Report Delonex and Africa Oil
    IFC Response to CAO Assessment
    Oct 20, 2020
    English
    IFC Response to CAO Assessment