sharing in governance of extractive industries
The report is available here
Oxfam in Kenya, in line with its country strategy which aims at influencing positive policy and practice changes supported by evidence, commissioned a research to assess Tullow Oil’s implementation of Free Prior Informed Consent (FPIC) in the Turkana oil fields. The research, titled- ‘Testing Community Consent: Tullow Oil Project in Kenya’- was premised on Tullow’s application of FPIC in Turkana given that one of the project partners exploring and developing the blocks in the South Lokichar Basin, Africa Oil, received funding from the International Finance Corporation (IFC). As the operator of fields and as a condition for IFC funding, Tullow Oil is obligated to comply with the IFC Performance Standards, including the requirement to obtain Free, Prior and Informed Consent (FPIC) of communities of indigenous peoples affected by their operations. The research was also informed by the need to assess Tullow’s performance against its own Human Rights Policy which requires the company to obtain ‘broad community support’ and ‘the informed agreement’ of communities affected by projects. While the primary focus of the research was on Tullow and its implementation of FPIC- the research findings and recommendations provide important lessons for other companies and other stakeholders in the extractive sector including local communities, civil society, government and project financiers.
Oxfam defines FPIC as ‘the principle that indigenous peoples and local communities must be adequately informed about projects in a timely manner and given the opportunity to approve (or reject) a project before operations begin’. This includes participation in setting the terms and conditions that address the economic, social, and environmental impacts of all phases of extraction and post-extraction operations.’
Further, communities should have the right to continue to provide informed consent, or alternatively to withdraw consent, during the implementation of the project, in line with agreed procedures. According to Sumananjali Mohanty, Oxfam’s Country Director in Kenya, the rights of communities must be upheld from the on-set of projects, as communities are one of the key decision-makers. An important element in any meaningful and transformational development process must be driven by communities making informed choices and holding all stakeholders to account.
A major finding of the FPIC research include that Tullow’s community engagement process has improved since 2015. However, there remain challenges related to the participation of women in consultation processes as traditional pastoralist practices make it harder for women to know about, participate in or influence consultations as currently structured. Consultations have largely also focused on the short-term implications in terms of land access for the exploration phase without assessing implications for the community with respect to the full range of potential risks and impacts throughout petroleum development process. The research also found that FPIC implementation also requires that county and national governments provide support and oversee the consultation process while not derogating from their responsibility to support the development of local communities.
There exists room for improvement and the research recommends the following key actions, for a truly FPIC compliant process:
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