(A case study of Turkana County Tullow Oil Company)

EKIRU LOLIMO FILEX

A Report Submitted in Partial Fulfillment of the Requirements for the Award of

Diploma in Purchasing and Supplies Management at Sang’alo Institute of Science &
Technology (SIST)

FROM September, 2018 TO November, 2018

 DECLARATION
This report is my original work and has not been submitted to any other institution of learning.

EKIRU LOLIMO FILEX SIGNATURE: ………………

DSCM/10455/2017 DATE: ………………………..

DECLARATION BY THE SUPERVISOR

The attachment report has been submitted with the approval as the College supervisor

NAME: ……………………………………………..

SIGNATURE:………………………… DATE:……………………………………
SIS

ACKNOWLEDGEMENT

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First of all, I would like to thank Turkana County, Tullow Oil Company for giving me this
opportunity to do this attachment. I gained valuable experience from being involved in real
business sector. Secondly, I would like to thank Mr. Kennedy Ngasiko Eukot, my supervisor in
Procurement department, for giving me the chance to work with him. Third, I would also like to
send my acknowledgement to the management of Sang’alo institute of Science & Technology
who gave me valuable theoretical, analytical and development skills that was a core help to my
work, hence I would like to thank the academic supervisors and all the lecturers for their
valuable courses. Lastly, I should thank my assessor;….......................................... for his
presence during my assessment in the attachment period. I also thank my parents, my brother and
my sisters for their support and may God bless them. I wish everyone the best and bright future
ahead.

EXECUTIVE SUMMARY
This report gives the overview of attachment I did from September, 2018 to November, 2018
(Three months) at Turkana County, Tullow Oil Company. The main purpose of this report is to

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reflect what I have learnt from those three months as an attaché. The report gives a brief history
of the Tullow Oil Company. It then shows the organizations profile. The report further explains
on the range of the services that the county offers, departments attached and duration of
attachment. It also has the activities undertaken in the organization, analysis of learnt knowledge
and skills, skills acquired observations and challenges encountered. The report also brings out the
recommendations to the university on how to improve the attachment programs. The attachment
period has been a very educative with lots of experience because the employees of the
organization have been the best team to work with and have tirelessly dedicated their time to get
me through the organization’s day to day activities and approving most of the information in this
report. And also it analysis the status of the Company’s’ departments.

TABLE OF CONTENTS
DECLARATION...........................................................................................................................ii

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ACKNOWLEDGEMENT...........................................................................................................iii

EXECUTIVE SUMMARY..........................................................................................................iv

CHAPTER ONE: INTRODUCTION..........................................................................................1

1.1 History Of The Organization...............................................................................................1

1.2 Main functions or core activities of the core activities of the Organization....................2
1.3 Vission statement,Our strategy, Mission statement and Core Values of the institution.2
1.4 Organizational structure………………………………………………………………….....4
1.5 Duties and responsibilities of the key personnel in the organization……………………......5
CHAPTER TWO: HOST ATTACHMENT DEPARTMENT...................................................6

2.1 Key functions/activities of the procurement department..................................................6

2.2 Duties and responsibilities of staff in procurement department. ....................................7
2.3 The main objectives for the attachment exercise...............................................................8
2.4 Attaché’s assigned routine and department’s participation forums................................9
CHAPTER THREE: EVALUATION OF THE ATTACHMENT PERIOD...........................10

3.1 Success/ failures...................................................................................................................10

3.2 Challenges encountered during the attachment period..................................................10
3.3 Overcoming the challenges.................................................................................................11
3.4 Recommendation to improve the attachments in Collage...............................................11
REFERENCES..............................................................................................................................12

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 CHAPTER ONE
INTRODUCTION

1.1 History of the Tallow Oil.

Tullow has a track record of discovering significant oil resources in East Africa. The Group first
started exploring in Uganda in 2006, successfully opening the Lake Albert Rift Basin, which has
discovered resources of some 1.7 billion barrels of oil. Tullow has taken its knowledge and
understanding of the geology in Uganda across into neighbouring Kenya. Since 2012, Tullow’s
successful exploration and appraisal drilling campaigns in Kenya have resulted in the opening of a
second new tertiary rift play in the South Lokichar Basin. Following a full assessment of all the
exploration and appraisal data, Tullow estimates that the South Lokichar basin contains the
following recoverable resources: 240 – 560 – 1,230 mmbo (1C–2C–3C) from an overall discovered
STOIIP of up to 4 billion barrels.

EXPLORATION & APPRAISAL SUCCESS

The Ngamia-1 exploration well in Kenya marked the start of a significant programme of drilling
activities across the acreage. In 2012, the Ngamia-1 well successfully encountered over 200 metres
of net oil pay, the second East Africa onshore tertiary rift basin opened by Tullow. This has since
been followed by further exploration success in the South Lokichar Basin at the Amosing, Twiga,
Etuko, Ekales-1, Agete, Ewoi, Ekunyuk, Etom, Erut and Emekuya oil accumulations.

A total of 21 appraisal wells have been drilled in the South Lokichar basin and Tullow has also
conducted extended well tests, water injection tests, well interference tests and water-flood trials,
all of which have proved invaluable for planning the development of the oil fields.
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TULLOW KENYA B.V. ACCOUNTS

Report and Audited Financial Statements

 31 DEC 2014TULLOW KENYA BV 2014 ACCOUNTS / PDF 1MB

 31 DEC 2015TULLOW KENYA BV 2015 ACCOUNTS / PDF 665KB

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DEVELOPMENT PLANNING

Tullow and its Joint Venture Partners have proposed to the Government of Kenya that the Amosing
and Ngamia fields should be developed as the Foundation Stage of the South Lokichar development.
This stage would include a 60,000 to 80,000 bopd Central Processing Facility (CPF) and an export
pipeline to Lamu. This approach brings significant benefits as it enables an early FID of the Amosing
and Ngamia fields taking full advantage of the current low-cost environment for both the field and
infrastructure development and provides the best opportunity to deliver First Oil in a timeline that
meets the Government of Kenya (GoK) expectations. The installed infrastructure from this initial
phase can then be utilised for the optimisation of the remaining South Lokichar oil fields, allowing
the incremental development of these fields to be completed at a lower unit cost post-First Oil.

The Foundation Stage is currently planned to involve an initial 210 wells through 18 well pads at
Ngamia and 70 wells through seven well pads at Amosing. This stage will target volumes of around
210 mmbo of the total estimated 2C resources of 560 mmbo and a plateau rate of 60,000 to 80,000
bopd. The incremental development of the remaining 2C resources and the significant upside
potential is expected to increase plateau production to 100,000 bopd or greater. It is anticipated
that the FEED and baseline Environmental and Social Impact Assessments (ESIA) for the foundation
development will commence in the second quarter of 2018, with FID targeted for 2019 and First Oil
for 2021/22. Total gross capex associated with the Foundation Stage is expected to be $2.9 billion, of
which $1.8 billion is investment in the upstream and $1.1 billion is for the pipeline.

Tullow and its Joint Venture Partners, following the extended election period, have re-engaged with
representatives of the Government of Kenya on the overall approach and timelines for progressing
the development.
EARLY OIL PILOT SCHEME (EOPS)

In early June 2018, the transfer of stored crude oil to Mombasa, by road, commenced. The EOPS will
transport oil produced from injection and production testing at the Ngamia and Amosing fields and
the scheme will build up to ~2,000 bopd gross production.

OUR HISTORY IN KENYA

Tullow entered Kenya in 2010, after signing agreements with Africa Oil and Centric Energy to gain a
50% operated interest in five onshore licences; 10BA, 10BB, 10A, 12A and 13T. In 2012, Tullow
farmed in to onshore Block 12B with 50% and increased its interest in Block 12A to 65%. Since then
our interest in Block 10A has been relinquished and in October 2015. Tullow currently has a 50%
operated interest in Blocks 10BA, 10BB, 13T and 100% in Block 12B. In April 2018 Tullow transferred
it’s operatorship of Block 12A to Delonex and now holds 40% equity in this Block.

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1.2 Main functions or core activities of the core activities of the Organization
 Create jobs

Develop capacity in parts of the national workforce
 Create local business opportunities
 Encourage foreign direct investment through our international supply chain
This is an opportunity we thrive on, and is part of Tullow’s DNA. We also recognise
that paying our taxes in our countries of operation is an important commercial,
legal and moral obligation. Tullow not only supports this obligation, but is
transparent about what tax payments we make.

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1.3 Vision statement
To be recognized as the leading provider of total staffing solution in sub Saharan Africa. We aim
to be recognized not just as a staffing company, but also as a human capital and business service
provider organization, which is dedicated to providing the highest quality of service to our clients
& the professionals we place.

1.3.1 Our strategy

Our strategy for growth is centered on expansion within the African region & discipline
diversification & we’ve done it by making sure we deliver on our promises. And that’s meant
more companies & professionals want to work with us. Integrity, commitment, respect
&Excellence are our core values.

1.3.2 Mission Statement

We are dedicated to offering the best international & domestic service in Human Resource
Outsourcing; Training & Capacity building that enables our clients to manage their operations
efficiently & effectively.

1.3.3 Core Values

 Client satisfaction
 Efficiency & effectiveness
 Shared prosperity
 Positivity
 Community focused
 consistency

1.4 Organization structure

DIRECTO
DIRECTO
RR

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 HR
HR

DIRECTO
DIRECTO
ASS.HR
ASS.HR RR

MANAGER
MANAGER CLO

ACCOUNTANT
ACCOUNTANT

PROCUREMEN
PROCUREMEN
TT

/LOGISTICTS
/LOGISTICTS

OFFICE
OFFICE GROUDMAN
GROUDMAN

ASSISTANT
ASSISTANT

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1.5 Duties and Responsibilities of the Key Personnel in Tullow Oil Company
I was attached to supply chain section that is responsible for the procurement transaction of the
organization and is headed by supply chain manager. Procurement section is under the company
treasury department which is involved in the management of financial resources as it relates to
collection of the created revenue by other departments.

CHAPTER TWO
HOST ATTACHMENT DEPARTMENT
2.0 Introduction
The following are highlighted and discussed; function of the department, staff establishment, the
students’ objectives and the attaches’ routine forums.

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2.1 Key functions/activities of the procurement department.
The following are some of the key functions:-
 Procuring Materials-It ensures that materials needed for daily operations of the
organization are procured and that there are sufficient products on the shelves to keep the
store well stocked. It also ensures that vendors that supply the organization with items it
needs to operate properly.
 Evaluating Prices-It’s charged with continuously evaluating whether it is receiving
materials at the best possible price in order to maximize profitability. It communicates
with alternate vendors to negotiate with better pricing for orders or investigate the
possibility of procuring cheaper materials from alternative sources as part of their daily
activities.
 Paperwork and Accounting- It handles all of the paperwork involved with purchasing and
delivery of materials from vendors generates and tracks purchase orders and works
alongside the receiving department and the accounts payable department to ensure that
promised deliveries are received in full and are paid for on time.
 Policy Compliance- It ensures that it comply with all companies polices that’s is the
department ensures that it heads proper protocols for purchase and budget approval and
must ensure that any items are purchased in accordance with the overall policy of the
organization.
 To encourage participation from Disadvantaged Business Enterprises on federally funded
projects.
 To ensure that procurement transactions are condemned in a manner providing full and
open competition whenever practicable.

2.2 Duties and responsibilities of staff in procurement department. .

The following are duties and responsibilities of the staff in procurement department:

2.2.1 The Procurement Officer

i. Maintaining and updating annual standing lists of registered tenderers required.

ii. Preparing, publishing and distributing procurement and disposal opportunities

including invitation to tender, prequalification documents and invitation to express
interest.

iii. Reviewing technical specification for raw material, components..

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 iv. Maintain and safeguard procurement and disposal documents and records in
accordance with regulations.

v. Certify the invoices and payment vouchers to suppliers.

vi. Seeking reliable vendors or suppliers to provide quality goods.

vii. Forecasting upcoming demand.

viii. To supervise procurement agents and buyers.

ix. Prepare consolidated procurement and disposal plan.

2.2.2 Senior Procurement Clerk

i. Confirmation of order quantity, pricing and availability of items.
ii. Order follow up (telephone/email communication)
iii. Maintaining system of ordering materials supplies and equipments.
iv. Maintaining files, orders supplies, form and other resources.
v. Obtain and evaluate order quotes.
vi. Review of contracts, bids and proposals for price.

2.2.3 Store man

i. Ensuring item quantities full within their minimum and maximum levels.
ii. Generating purchase requisition and receiving shipments and verifying them against
purchase orders.

iii. Keep store area clean and safe.

iv. Placing and organizing of stock items

v. Data entry and invoicing.

vi. Prepare orders to dispatch to specification

2.3 The main objectives for the attachment exercise

The objectives include the following:

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 i. To apply theoretical knowledge obtained during the course in the practical working
environment.
ii. To acquire skills in the procurement department and know its operation.
iii. To understand well the Public Procurement and Disposal Act 2005.
iv. To increase management efficiency to provide superior services to consumers.
v. To support operational requirements of the organization.

vi. Analyzing the prices during the process of opening of tender documents.

vii. To learn how to raise S11 (counter requisition and issue voucher) and S13 (Stock control
card).

viii. To understand the functioning and working conditions of a government ministry.

ix. To build network by getting to know people from different parts of Kenya

x. To be able to put in practice all the communication skills.

2.4 Attaché’s assigned routine and department’s participation forums.

i. Preparation and recording of request for quotation.

ii. Preparation of minute of various requests for quotation.

iii. Processing of local service order and local purchase order.

iv. Participation in opening and evaluation of tender documents of water projects.

v. Opening of procurement quotation.

vi. Issuing of goods from the store to the user departments.

vii. Preparation of different committees such as tender committee and tender evaluation
committee.

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 CHAPTER THREE

EVALUATION OF THE ATTACHMENT PERIOD

3.1 Success/ failures
i. Communication skills

I am progressing in learning to improve my communication skills in different levels.

Such as superiors, subordinates, colleagues and suppliers.

ii. Teamwork

During three months, I organized various activities with my colleagues, I knew how to
deal with group members and know how important teamwork.

iii. Full time working experience

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 Even though I have never worked and it was my first time to work in a big organization. I
had to report at work early in the morning and I was attached to daily task and also I was
leaving at work in the evening. This was a great opportunity for me to learn and gain
experience.

iv. Personal improvement

Most of the time, I worked with other colleagues as a team. And I was able to increase the
thinking capacity to various levels.

v. Becoming practical

After two years of learning theoretical matters, during two months’ attachment I got a
good chance to implement what I have learned and put my knowledge into practice in the
procurement field.

3.2 Challenges encountered during the attachment period

i. Feeling out of depth
Being my first attachment I felt awkward because I couldn’t deal with the entire complex
such as to wait until I was given go ahead to conduct something.
ii. Unsure about how to work under pressure
At times I felt unsure of how to deal with work under pressure, which I had to discuss
with my supervisor. I felt so because; it was easy for me to make small mistakes which I
had to avoid.
iii. Work overload
Sometimes there was much work that I had to extend the working hours so as to complete
the task. Also being so punctual with the time to leave the office it was a challenge to stay
overtime.
iv. Unconducive environment
Dust was everywhere due to improper building.

3.3 Overcoming the challenges

In cases where I thought I didn’t have enough confidence to work under pressure, I figured it out
and consulted the supervisor for help. It was useful for me as an attaché to be alert and +updated
on everything going on around me. Also I had to have positive attitude towards every task that I
was given. In the course of attachment one is excited to different task and interesting projects.

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 Where I felt there was too much work I asked for assistance and also the work I was given was
within my capacity. I was able to handle different task through the help of my supervisor. Also
where I was feeling out of depth I didn’t panic a great deal, I was able to cope with everything
from the institution. And during my assessment it was a challenge on how to cope with the
assessor but it was not a great deal. As per the experience I learnt that I must expect and accept
every challenge that comes my way as is a sign of growth. And many times when a challenge
comes there is a big thing ahead. Also the renovation of the office was done to ensure conducive
environment.

3.4 Recommendation to improve the attachments in College.

Supervision and assessment of student industrial attachment is competence-based to the
students who are far from the institution to ensure the experience is genuine. And also to
improve the conduct of assessment in developing assessment tools, design, establishment
and management of the assessment process itself.

REFERENCES
COMPANY SECRETARY & REGISTERED OFFICE
Adam Holland
Company Secretary
9 Chiswick Park
566 Chiswick High Road
London
United Kingdom
W4 5XT

 PHONE: +44 (0)20 3249 9000

 FAX: +44 (0)20 3249 8801

 EMAIL: COMPANYSECRETARY@TULLOWOIL.COM

INVESTOR RELATIONS
9 Chiswick Park
566 Chiswick High Road
London
United Kingdom
W4 5XT

 PHONE: +44 (0)20 3249 9000

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 FAX: +44 (0)20 3249 8801

 EMAIL: IR@TULLOWOIL.COM

SAFETY AND SUSTAINABILITY

9 Chiswick Park
566 Chiswick High Road
London
United Kingdom
W4 5XT

 PHONE: +44 (0)20 3249 9000

 FAX: +44 (0)20 3249 8801

 EMAIL: CSP@TULLOWOIL.COM

HUMAN RESOURCES
9 Chiswick Park
566 Chiswick High Road
London
United Kingdom
W4 5XT

 PHONE: +44 (0)20 3249 9000

 FAX: +44 (0)20 3249 8801

SUPPLY CHAIN
Various locations

VISIT OUR 'BECOMING A SUPPLIER' PAGE

GENERAL ENQUIRIES
9 Chiswick Park
566 Chiswick High Road
London
United Kingdom
W4 5XT

 PHONE: +44 (0)20 3249 9000

 FAX: +44 (0)20 3249 8801

 EMAIL: INFO@TULLOWOIL.COM

KEY CORPORATE OFFICES

LONDON
9 Chiswick Park
566 Chiswick High Road
London
W4 5XT

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 PHONE: +44 (0) 203 249 9000

 FAX: +44 (0)20 3249 8801

 EMAIL: INFO@TULLOWOIL.COM

DUBLIN
Number 1, Central Park
Leopardstown
Dublin 18
Ireland

 PHONE: +353 (0) 1 213 7300

 FAX: +353 (0) 1 293 0400

 EMAIL: INFO@TULLOWOIL.COM

CAPE TOWN
12th floor, Convention Tower
Heerengracht, Foreshore
Cape Town
South Africa
8001

 PHONE: +27 (0) 21 400 7600

 FAX: +27 (0) 21 400 7660

 EMAIL: REQUEST@TULLOWOIL.COM

KEY REGIONAL OFFICES

GHANA
Plot No. 70
Off George Walker Bush Highway
North Dzorwulu
Accra
Ghana

 PHONE: +233 (0) 302 742200

 FAX: +233 (0) 302 742300

KENYA
7th Floor, West End Towers
Waiyaki Way,
P.O Box 63298-00619
Nairobi
Kenya

 PHONE: +254 (0) 20 428 6000

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 EMAIL: INFOKENYA@TULLOWOIL.COM

If you are applying for Access to Information please email or send your request to the Country
Manager, Tullow Kenya using the above details.
UGANDA
Lotis Towers
Plot 16 Army Avenue
Nakasero
Uganda

 PHONE: +256 204 564 000

 FAX: +256 312 564 066

KENNEDY NGASIKO EUKOT-SUPERVISOR

TEL NO: …………………………………………

E-MAIL ADDRESS: ……………………………

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