Kenya says crude oil capacity insufficient for both a refinery and pipeline

Kenya says crude oil capacity insufficient for both a refinery and pipeline

Geza Ulole

Geza Ulole

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Kenya says crude oil capacity insufficient for refinery
TUESDAY FEBRUARY 19 2019

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A truck loaded with crude oil en route to Mombasa from the oilfields in South Lokichar. FILE PHOTO | NMG

In Summary
  • Kenya, which does not export any oil, previously had a crude oil refinery at its port city of Mombasa but halted operations in 2013 after plans for a $1.2 billion upgrade were abandoned on the advice of consultants who said it was not economically viable.


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By REUTERS
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Crude oil deposits discovered in Kenya are insufficient to justify construction of a refinery, a senior petroleum ministry official said on Tuesday.

Kenya discovered commercial oil in 2012 in its Lokichar basin, which Tullow Oil estimates contains an estimated 560 million barrels in proven and probable reserves. Tullow has said this would translate to 60,000 to 100,000 barrels per day of gross production.

It is proven the world over that a refinery would make money only when it has refining capacity of at least 400,000 barrels a day, Andrew Kamau, principal secretary at the petroleum and mining ministry, told reporters.

“And we have 80,000 barrels a day, so where are we going to make money on that? We can import cheaper from India,” he added.

Kenya, which does not export any oil, previously had a crude oil refinery at its port city of Mombasa but halted operations in 2013 after plans for a $1.2 billion upgrade were abandoned on the advice of consultants who said it was not economically viable.

The government took it over in 2016 and converted it into a storage facility.

Other partners in the blocks with crude oil discoveries are Africa Oil Corp and Total.

Last week Tullow said it expected commercial framework agreements from the government and deals over land acquisition for an 800 km pipeline and oilfield infrastructure in the first quarter.

The government announced its intention to list state-run National Oil Corporation of Kenya in November 2017 to raise $1 billion in a dual listing on the Nairobi bourse and London Stock Exchange (LSE) by early 2019.

The Nairobi Securities Exchange has said the local listing will be by the end of 2019.

Mr Kamau said the listing will only take place after a final investment decision (FID) is agreed. Tullow says it expects that decision to happen by the end of this year.

“The listing will only be done after FID. Because that’s when you book the reserves; before that you really can’t do anything,” he said.

Kenya crude oil capacity too little for refinery
 
NGOJA WAJE NA DATA ZA KUPIKA😎
FULL MATUSI SAIVI WANAGUGO KWANZA😀😀
 
Nilisema hii mambo kitambo sana 👏👏👏👏
Habari njema, Shoga na msagaji Uhuru na ruto wali iba pesa za eurobond wakidhani eti watauza mafuta warudishe.. JPM na M7 akawapiga chenga kwa bomba la mafuta..Huu ndio ushirikiano wa kweli kwa nchi za EAC..Tukomeshe madudu na mijizi kote sio tu kwa nchi yako
 
French President Macron to visit KENYA next month...Pipeline tings.
 
How can an oil refinery not be financially viable when the whole of East and central Africa no one has an oil refinery....

Hapa ni mabwenyenye wenye malori ya kubeba mafuta ndo Yana inflitrate serekali kulazimisha tuendelee Ku import mafuta na pia Yale yalioko turkana yabebwe na malori ili waendelee kupata faida. We used to have an oil refinery and it was very profitable in the 90s you can't tell me now that we have more vehicles on the road an oil refinery wouldn't be even more profitable...
 
Kafrican said:
How can an oil refinery not be financially viable when the whole of East and central Africa no one has an oil refinery....

Hapa ni mabwenyenye wenye malori ya kubeba mafuta ndo Yana inflitrate serekali kulazimisha tuendelee Ku import mafuta na pia Yale yalioko turkana yabebwe na malori ili waendelee kupata faida. We used to have an oil refinery and it was very profitable in the 90s you can't tell me now that we have more vehicles on the road an oil refinery wouldn't be even more profitable...
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Boss, Oil business i not like your small kitchen garden where you can grow your vegatables for home consumption..The capital costs are massive, the running costs back breaking. Kenya has very small amounts of oil
 
Kafrican said:
How can an oil refinery not be financially viable when the whole of East and central Africa no one has an oil refinery....

Hapa ni mabwenyenye wenye malori ya kubeba mafuta ndo Yana inflitrate serekali kulazimisha tuendelee Ku import mafuta na pia Yale yalioko turkana yabebwe na malori ili waendelee kupata faida. We used to have an oil refinery and it was very profitable in the 90s you can't tell me now that we have more vehicles on the road an oil refinery wouldn't be even more profitable...
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Tafadhali jipe muda kidogo ujielimishe kuhusu tofauti za refineries. Kuna primary(Principal) na secondary. Hizi za Mombasa na Dar ni secondary ambazo kazi yake ni kutenganisha mafuta ambayo yalishafikia 75% processed huko Uarabuni, hakuna nchi yoyote Subsahara Africa yenye Primary refinery, hata Nigeria na Angola hawana, sasa hivi Dangote ndio anajenga huko Nigeria.

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joto la jiwe said:
Tafadhali jipe muda kidogo ujielimishe kuhusu tofauti za refineries. Kuna primary(Principal) na secondary. Hizi za Mombasa na Dar ni secondary ambazo kazi yake ni kutenganisha mafuta ambayo yalishafikia 75% processed huko Uarabuni, hakuna nchi yoyote Subsahara Africa yenye Primary refinery, hata Nigeria na Angola hawana, sasa hivi Dangote ndio anajenga huko Nigeria.

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Wachana na Hill pumbavu!
 
Kafrican said:
How can an oil refinery not be financially viable when the whole of East and central Africa no one has an oil refinery....

Hapa ni mabwenyenye wenye malori ya kubeba mafuta ndo Yana inflitrate serekali kulazimisha tuendelee Ku import mafuta na pia Yale yalioko turkana yabebwe na malori ili waendelee kupata faida. We used to have an oil refinery and it was very profitable in the 90s you can't tell me now that we have more vehicles on the road an oil refinery wouldn't be even more profitable...
Click to expand...

You speak very frank, but you have thieves with u
 
joto la jiwe said:
Tafadhali jipe muda kidogo ujielimishe kuhusu tofauti za refineries. Kuna primary(Principal) na secondary. Hizi za Mombasa na Dar ni secondary ambazo kazi yake ni kutenganisha mafuta ambayo yalishafikia 75% processed huko Uarabuni, hakuna nchi yoyote Subsahara Africa yenye Primary refinery, hata Nigeria na Angola hawana, sasa hivi Dangote ndio anajenga huko Nigeria.

Sent using Jamii Forums mobile The first refinery building with distillation, hydro-treating, catalytic reforming]
My frien, Mombasa oil refinery used to refine crude oil in the 70s kabla hizo mashini ziharibike na serekali ya Kenya ikashindwa kuzinunua... Kabla serekali ya Kenya ije kumiliki hicho kiwanda nilikua kinamilikiwa na she'll na BP.... Baada ya kuacha Ku refine crude oil Kampuni hio
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joto la jiwe said:
Tafadhali jipe muda kidogo ujielimishe kuhusu tofauti za refineries. Kuna primary(Principal) na secondary. Hizi za Mombasa na Dar ni secondary ambazo kazi yake ni kutenganisha mafuta ambayo yalishafikia 75% processed huko Uarabuni, hakuna nchi yoyote Subsahara Africa yenye Primary refinery, hata Nigeria na Angola hawana, sasa hivi Dangote ndio anajenga huko Nigeria.

Sent using Jamii Forums mobile app
Click to expand...
My frien, Mombasa oil refinery used to refine crude oil in the 70s kabla hizo mashini ziharibike na serekali ya Kenya ikashindwa kuzinunua... Kabla serekali ya Kenya ije kumiliki hicho kiwanda kilikua kinamilikiwa na shell na BP.... Baada ya kuacha Ku refine crude oil Kampuni hio ikageuzwa jina na kuitwa Kenya Petroleum refinery kuashiria kua ilikua haina uwezo wa Ku refine crude oil tena ila ilikua na uwezo wa Ku process semi-prossed oil.... Alafu tulipoingia miaka ya 2000 ikafika wakati flani ikasemekana hio plant haiko efficient tena .... Makampuni ya kibinafsi ndo yaka take over ... Sasa wamerudi tena ili kuhakikisha hatujengi refinery plant yoyote ili waendelee kusupply.....


Ujue Kenya ili zindua mafuta 2011, mpango wa kujenga crude oil refinery ulikua Kwa vision 2030 ambayo ilizinduliwa 2008, ambapo ilikua tuta import crude oil kutoka South Sudan na nyengine kutoka nje kupitia Lamu port... Wakati huo Kenya ilikua hakujapatikana oil ya Aina yoyote.... Kwahivyo hakuna mtu anaweza kunizengua eti mafuta ya Turkana ni 'kidogo' mno kwahivyo hakuna haha ya kujenga refinery... Upuzi mtupu! I have lived long enough to know how this country works. Kuna jamaa wanatayarisha tender ya kupata exclusive contract ya Ku supply mafuta yote kutoka Nairobi depot na yale ya Turkana wanajua wataipata baada ya kuua ndoto ya refinery na pipeline..
 
Kafrican said:
My frien, Mombasa oil refinery used to refine crude oil in the 70s kabla hizo mashini ziharibike na serekali ya Kenya ikashindwa kuzinunua... Kabla serekali ya Kenya ije kumiliki hicho kiwanda kilikua kinamilikiwa na shell na BP.... Baada ya kuacha Ku refine crude oil Kampuni hio ikageuzwa jina na kuitwa Kenya Petroleum refinery kuashiria kua ilikua haina uwezo wa Ku refine crude oil tena ila ilikua na uwezo wa Ku process semi-prossed oil.... Alafu tulipoingia miaka ya 2000 ikafika wakati flani ikasemekana hio plant haiko efficient tena .... Makampuni ya kibinafsi ndo yaka take over ... Sasa wamerudi tena ili kuhakikisha hatujengi refinery plant yoyote ili waendelee kusupply.....


Ujue Kenya ili zindua mafuta 2011, mpango wa kujenga crude oil refinery ulikua Kwa vision 2030 ambayo ilizinduliwa 2008, ambapo ilikua tuta import crude oil kutoka South Sudan na nyengine kutoka nje kupitia Lamu port... Wakati huo Kenya ilikua hakujapatikana oil ya Aina yoyote.... Kwahivyo hakuna mtu anaweza kunizengua eti mafuta ya Turkana ni 'kidogo' mno kwahivyo hakuna haha ya kujenga refinery... Upuzi mtupu! I have lived long enough to know how this country works. Kuna jamaa wanatayarisha tender ya kupata exclusive contract ya Ku supply mafuta yote kutoka Nairobi depot na yale ya Turkana wanajua wataipata baada ya kuua ndoto ya refinery na pipeline..
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Hii inanikumbusha mambo ya ku-electrify SGR..Yaani leo wanasema hakuna haja eti ubora wa umeme haupo, kesho wanakanusha eti kandarasi ya kuweka umeme ishatangazwa ili kufurahisha M7..
Jubilee Gvt looks very stupid when it lies,..
Am very happy that now crude is trading at $55 and will go cheaper with Trump at the helm..Kenyan oil can only turn a profit when. Crude is $70>>
 
Mkikuyu- Akili timamu said:
Hii inanikumbusha mambo ya ku-electrify SGR..Yaani leo wanasema hakuna haja eti ubora wa umeme haupo, kesho wanakanusha eti kandarasi ya kuweka umeme ishatangazwa ili kufurahisha M7..
Jubilee Gvt looks very stupid when it lies,..
Am very happy that now crude is trading at $55 and will go cheaper with Trump at the helm..Kenyan oil can only turn a profit when. Crude is $70>>
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Correct me if i'm wrong but isnt
600,000,000 barrels x $55 = $33 Billion
600,000,000 Barrels x $70 = $42 Billion

They (oil companies) have already used like $3 Billion in exploration and other downstream expenses , then the upstream expenses (e.g a pipeline) plus other operating costs over the coming years (i.e taxes, salaries, operating costs, maintenance) once oil starts flowing will probably cost up to $10B..... So lets summarize the costs will accumulate to somewhere around $15 Billion...... SO if oil prices were to stay at $55 per barrel there is still some $18 Billion of profits to be made, If you divide the $18B of profits among the stakeholders (GoK,Tullow, CNOCK, Total) then only Tullow will get more than $6B with the rest sharing the spoils..... Its not much relatively speaking but its still alot since its pure profit with no hidden deduction....... Also GoK will still get other revenues from the taxes and other charges at the port etc......
 
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