- Title: KENYA: OIL REFINERY Kenya refinery to purify crude for itself.
- Date: 23rd July 2012
- Summary: MOMBASA, KENYA (JULY 20, 2012) (REUTERS-ACCESS ALL) VARIOUS OF MOMBASA PORT VARIOUS OF OIL TANKER MV ALBERTA ABOUT TO DOCK AT THE KIPEVU OIL TERMINAL (KOT). TUG BOAT WITH OPERATORS WAITING TO DOCK THE TANKER. KIPEVU OIL TERMINAL WITH THE TANKER DOCKING KENYA PETROLEUM REFINERIES LIMITED (KPRL) OFFICIALS AND OTHER STAKE HOLDERS WAITING FOR THE TANKER TO DOCK WRITINGS ON T-SHIRT WON BY OFFICIALS READING ' FROM TOLL TO MERCHANT, CHANGE WE BELIEVE IN' BRIJ BANSAL KPRL CEO HOLDING BOTTLE CONTAINING CRUDE OIL WITH GEORGE KAHIRA, MANAGING DIRECTOR GALANA OIL (K) LIMITED OIL PIPES FROM THE SHIP HEADING TO THE MAINLAND. OFFICIALS LEAVE THE TANKER SITE. OIL PIPES (SOUNDBITE) (English) BRIJ BANSAL, KENYA PETROLEUM REFINERIES LIMITED SAYING: "Once we start processing this crude, then we are fully converting into merchant mode and after processing crude oil then the product will be sold to the marketing companies here in Kenya." KENYA PETROLEUM REFINERIES LIMITED SIGN KENYA PETROLEUM REFINERIES LIMITED COMPOUND KENYA PETROLEUM REFINERIES LIMITED FLAG VARIOUS OF KENYA PETROLEUM REFINERIES LIMITED OIL TANKS (SOUNDBITE) (English) GEORGE KAHIRA, GALANA OIL KENYA, MANAGING DIRECTOR SAYING: "For all the stakeholders, for the consumer, for the oil marketing companies, for KPRL, for the government, I think the merchant mode is good for all of us. I think its going to produce good value for the consumer and as Galana we are happy to work with KPRL with this first cargo, to overcome all the bottle-necks and be able to deliver the cargo on time, ready for KPRL now to start processing the crude, and selling to the oil companies finished products." VARIOUS OF OIL TANKS AND OIL REFINING FACILITIES (SOUNDBITE) (English) MRUTTU, GENERAL MANAGER, KENYA PETROLEUM REFINERIES LIMITED "Instead of KPRL being locked into one crude type, by converting into merchant then it will have that flexibility of continuously looking out in the market for more economical crude to process and by doing that then the country's economy will benefit." VARIOUS OF KOBIL PETROL STATION STATION ATTENDANT FUELLING CAR. FUEL PUMP FUEL NOZZLE
- Embargoed: 7th August 2012 13:00
- Keywords:
- Location: Kenya
- Country: Kenya
- Topics: Industry,Energy
- Reuters ID: LVAYARLAV2TGM069DL5TUOVWXQ7
- Story Text: The Kenya Petroleum Refineries Limited (KPRL) received its first direct purchase of oil, 82,000 tonnes of UAE Murban crude on Saturday (July 21).
Until now, only fuel marketing companies have been importing crude and paying processing fees to the Mombasa refinery, which is owned by the Kenyan government and India's Essar Energy.
The Kenya Petroleum Refineries Limited plant will add another competitor to Kenya's existing fuel marketers, which may help ease fuel shortages and high pump prices in east Africa's biggest economy
"Once we start processing this crude, then we are fully converting into merchant mode and after processing crude oil then the product will be sold to the marketing companies here in Kenya," said Brij Bansal, Kenya Petroleum Refineries Limited, CEO.
Bansal said the refinery will be able to source cheaper crude without restricting itself to a specific mix, and may even buy blended crude to lower import costs.
In June, the refinery which processes 1.6 million tonnes of crude a year, signed a 250 million US dollars credit line from Standard Chartered Bank to finance crude imports.
Its first independent purchase of crude was loaded at the port of Jebel Dhana in Abu Dhabi at a cost of 65 million US dollars.
Two more ships, Bansal said, all of the same quantity, value and origin are expected to follow in August and September.
The oil was imported by marketing and distribution company, Galana Oil Kenya and bought by the refinery.
"For all the stakeholders, for the consumer, for the oil marketing companies, for KPRL, for the government, I think the merchant mode is good for all of us. I think its going to produce good value for the consumer and as Galana we are happy to work with KPRL with this first cargo, to overcome all the bottle-necks and be able to deliver the cargo on time, ready for KPRL now to start processing the crude, and selling to the oil companies finished products," George Kahira, Galana Oil Kenya, managing director.
Kenya has imported Murban crude from Abu Dhabi and Saudi Arabia's Arabian Heavy and Medium crude grades through an open tender system (OTS).
"Instead of KPRL being locked into one crude type, by converting into merchant then it will have that flexibility of continuously looking out in the market for more economical crude to process and by doing that then the country's economy will benefit," said John Mruttu, general manager, Kenya Petroleum Refineries Limited.
Kenya's electricity distributor, Kenya Power said that it would reduce electricity tariffs by 10 percent this year, due to reduced fuel prices.
Fuel prices in the country have fallen sharply after crude fell on global markets, signalling a drop in inflation in the coming months. - Copyright Holder: REUTERS
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