A Kenyan court has ordered construction paused on Aliko Dangote's $16 billion oil refinery in Lamu after 133 local petitioners challenged the project. The judge set an Oct. 14 hearing, and Dangote says it will still hold this week's groundbreaking ceremony even as no site work can proceed.
A Kenyan court has ordered a halt to construction on Aliko Dangote's $16 billion oil refinery on the country's northeastern coast, after a group of petitioners filed a case opposing the project. According to Rigzone: Judge Jane Onyango ordered that "the status quo prevailing" be maintained in the Lamu area, where the refinery is due to be built.
Court to revisit the case in October
The court will provide further directions on Oct. 14, according to the order issued on Sept. 25. George Wakahiu, a lawyer representing the local opponents, said the ruling means no construction should begin before then.
Even so, Dangote Petroleum Refinery and Petrochemicals Fze said it plans to proceed with a groundbreaking ceremony later this week, while confirming no activity will take place at the site until the case is heard.
Petitioners cite land and environmental concerns
The 133 petitioners say they are farmers and local inhabitants of the Lamu area who stand to be deprived of their property rights if the project proceeds. They argue the refinery entails forceful eviction from their lands and the destruction of property without a resettlement plan.
Dangote and Kenyan authorities have also yet to comply with the country's environmental code, which requires a mandatory environmental impact assessment before any major project, the petitioners say. They add that the refinery fails to meet a constitutional requirement for public participation.
A project tied to a wider energy corridor
The legal setback risks delaying a facility whose importance has grown since the Iran war closed the Strait of Hormuz, a key artery for global crude oil supplies, and sent fuel prices sharply higher. The refinery is designed to cut eastern Africa's reliance on imported refined fuel.
It forms part of the Lamu Port-South Sudan-Ethiopia Transport corridor, a multibillion-dollar infrastructure plan that also includes railways, pipelines, a power plant, roads and airports.
Source: Rigzone.com: Latest News Headlines
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