Tullow works to increase the participation of local businesses within its supply chain to ensure the oil and gas sector creates long-standing positive impacts on the economies and lives of local communities where we operate.
Tullow signed a $2.5 million deal to source 36 vehicles from Toyota Kenya under a 3-year lease and buy contract. Turkana based companies were invited to bid to operate these vehicles and 60 bids were made against 36 available slots. Tullow awarded the 36 successful companies a vehicle each and immediately leased them back from these local businesses, creating an income stream for the local entrepreneurs.
The 36 winning companies are expected to take over the lease and buy rights from Toyota, meaning that, at the end of the three years, they will have full ownership of the vehicles. The vehicles will have to meet Tullow requirements and must travel across the whole of our operational area in Turkana.
As part of our commitment, we will train and develop the successful contractors through the Enterprise Development Initiatives.