Kenya: Delonex Energy and Africa Oil-01/ Kerio Valley
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)
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 the environment.
$60mil Equity- Delonex, $50mil Equity- Africa Oil
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 five counties, including Elgeyo Marakwet, Baringo, West Pokot, Turkana, and Samburu, in Kenya.
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 the IFC Sustainability Framework, and impacts on land, livelihoods, and the environment.
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 the 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 complainants and Delonex, and Tullow (in their capacity as observer), participated in capacity-building sessions and bilateral meetings between November 2020 and April 2021 and in an initial joint session facilitated by CAO in May 2021. Tullow withdrew from the process in November 2021. The process continued between Delonex and the complainants, for the most part, through bilateral meetings.
In August 2022, despite the parties' efforts to resolve the issues raised in the complaint, the parties could not reach an agreement. Accordingly, the case will be transferred to CAO’s Compliance function at the request of the complainants and in accordance with CAO’s Policy. CAO will conduct a compliance appraisal to determine whether an investigation of IFC’s environmental and social performance is merited in relation to the issues raised in the complaint or whether to close the case.
The conclusion report is now available in English and Kiswahili under the “Case Documents” section below this page.
The dispute resolution process concluded with no agreement. The case has been transferred to Compliance.
Status as of March 08, 2023