Oil from Turkana starts export trial to Mombasa

[Nivlark]

Turkana oil transport
trial begins
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Kenya's first oil truck leaves Turkana, marking
the beginning of transport trials as Kenya
moves closer to becoming an oil-producing
country.
Tullow Oil Company says it will transport crude
oil by road for the very first time under the
Early Oil Pilot Scheme (EOPS) from Lokichar in
Turkana to Mombasa.
The oil will be transported on two trucks and
this will later rise to 20 trucks after the
upgrade of the road is completed.
"The company will have two trucks that will
transport oil from Lokichar to Mombasa to
check for logistics. Our aim is to test its
reaction to different temperatures and to
understand the amount of time it will take to
get the oil to Mombasa," said Tullow's
Communications Officer Dennis Okore.
Tullow said the trucking is a trial to check on
the process and the logistics, but the real
transportation of early oil will start next year.
"This is just a trial version to check on the
pressure, temperatures, viscosity and how
much the refinery will take," said Mr Okore.
He added that the development process will
start next year after the Nadapal-Eldoret road
is tarmacked.
"The road will be used by the trucks carrying
oil to Eldoret. The oil will then be transported
to Mombasa via train," Okore said.
Kenya changed its strategy for transporting oil
after Uganda pulled out of an earlier plan to
build a joint pipeline. Uganda instead chose to
build its pipeline in partnership with Tanzania.
This left Kenya on its own to build its pipeline
alone. But before the pipeline is completed, the
country decided to start transporting its early
oil by road. This is what has led to today's
events.
Petroleum Principal Secretary Andrew Kamau
told The Standard that the plan was to
transport the crude oil from Turkana to Eldoret
by road for onward train travel to Mombasa.
"This is not the first time this is happening in
the world," Mr Kamau said in an earlier
interview, adding that the Government plans to
build the road to Lokichar.
The crude oil is expected to be stored in
Mombasa until sufficient quantities for export
are met.

 

[Geza Ulole]

pipeline imekuwaje? bomba limeota mbawa?

 

[Nivlark]

ulianza ati haiwezi uzwa juu threshold haijafika ndio hiyo inaflow through trials pipeline haijengwi na wiki mbili n it cant hold us from doing what is necessary.next najua utakuja hapa na story za alshabab ama njaa because ur knowledge of kenya is sadly limited to that sector.

 

[Dosantos robert]

Uyu Geza na uboshi

 

[Mpendwa1]

ulianza ati haiwezi uzwa juu threshold haijafika ndio hiyo inaflow through trials pipeline haijengwi na wiki mbili n it cant hold us from doing what is necessary.next najua utakuja hapa na story za alshabab ama njaa because ur knowledge of kenya is sadly limited to that sector.

Ati "sadly limited to that sector" ? waniraruwa kweli 😀😀😛😛😛 ni kama nilivyosema hapo awali " it's like talking to a brick"

 

[Geza Ulole]

ulianza ati haiwezi uzwa juu threshold haijafika ndio hiyo inaflow through trials pipeline haijengwi na wiki mbili n it cant hold us from doing what is necessary.next najua utakuja hapa na story za alshabab ama njaa because ur knowledge of kenya is sadly limited to that sector.

leta ushahidi!

 

[bongo-live]

Ati "sadly limited to that sector" ? waniraruwa kweli 😀😀😛😛😛 ni kama nilivyosema hapo awali " it's like talking to a brick"

wee mama kimya sana..njoo nikutomase

 

[Geza Ulole]

Nivlark, Mi nilisema refinery na pipeline haiwezi jengwa na si mafuta hayawezi uzwa! Hii habari hapa inadhibitisha nilichosema..

 

[Livale]

Geza, ikiwa bila hata tone la ufuta tulishajengaa refinery mombasa na pipeline mpaka eldoret, ni nini itafanya tushindwe kujenga wakati huu ukizingatia mafuta ipo, kiuchumi tuko mara nne bora kuliko tulivyokua tukijenga tulizonazo ? Labda usema haitajengwa hivi karibuni

 

[Geza Ulole]

Geza, ikiwa bila hata tone la ufuta tulishajengaa refinery mombasa na pipeline mpaka eldoret, ni nini itafanya tushindwe kujenga wakati huu ukizingatia mafuta ipo, kiuchumi tuko mara nne bora kuliko tulivyokua tukijenga tulizonazo ? Labda usema haitajengwa hivi karibuni

hahah mbona kama refinery hata sisi tulikuwa nayo! Tatizo huna market sasa ya kuuza refined products! Uganda will be the king as far as oil supply in the region is to be concerned! Kenya is starting to learn this bitter truth slowly! I see now the focus has swiftly shifted to trucks from pipeline stand before after realising South Sudan is joining Uganda pipeline aside DRC Congo!

 

[ushashi]

Hongereni wakenya it's a good start

 

[Livale]

hahah mbona kama refinery hata sisi tulikuwa nayo! Tatizo huna market sasa ya kuuza refined products! Uganda will be the king as far as oil supply in the region is to be concerned! Kenya is starting to learn this bitter truth slowly! I see now the focus has swiftly shifted to trucks from pipeline stand before after realising South Sudan is joining Uganda pipeline aside DRC Congo!

Waona ushakwepa swali lako mwenyewe. Ulikua wasema eti refinery haitajengwa Kenya, sasa waongelea miradi ya kujiongezea. Ni wapi SSudan wamesema eti watajenga pipeline mpaka Uganda. Ni waziri wenu tu amedokeza uwezekano wa wao kuweza kuwaunga. The SSudan govt has said nothing

Hongereni wakenya it's a good start

Asante. Natumai nanyi muanze jaribio la kuuza gesi hivi karibuni majaliwa

 

[Geza Ulole]

Waona ushakwepa swali lako mwenyewe. Ulikua wasema eti refinery haitajengwa Kenya, sasa waongelea miradi ya kujiongezea. Ni wapi SSudan wamesema eti watajenga pipeline mpaka Uganda. Ni waziri wenu tu amedokeza uwezekano wa wao kuweza kuwaunga. The SSudan govt has said nothing

Asante. Natumai nanyi muanze jaribio la kuuza gesi hivi karibuni majaliwa

Nasema refinery haitajengwa labda kama hela itoke mfukoni mwa serikali ya Jibilee! Hamna bank inaweza ku-finance a refinery for 600 mln barrels deposits! Unatakiwa uwe smart kunusa kinachokuja tatizo intelligency yenu ipo aidha weak au inatumika kisiasa! Ulitakiwa umuulize Uhuru wapi bomba la mafuta? Na kwanini anasafirisha kwa tankers? Ukweli ni wamekosa bank kuwakopesha fedha za pipeline kwahiyo kimya kimya wanasafirisha kwa tankers!

 

[Livale]

Do you know the meaning of the word trial?

Where did the govt promise to build a refinery and pipeline by July 2016?

France, UK, south Korea, Japan have little to no oil but with some of the largest refineries where as Nigeria, equatorial guinea have vast oil reserves but no refinery. Hio yaonyesha kazi kuu ya refinery ni kumeet 1st local then external demand. Refinery yetu ya mombasa haitutoshelezi kwa hivyo if it means importing oil to refine and sell at home and to kina Ethiopia, tutafanya hivyo

 

[Geza Ulole]

Do you know the meaning of the word trial?

Where did the govt promise to build a refinery and pipeline by July 2016?

France, UK, south Korea, Japan have little to no oil but with some of the largest refineries where as Nigeria, equatorial guinea have vast oil reserves but no refinery. Hio yaonyesha kazi kuu ya refinery ni kumeet 1st local then external demand. Refinery yetu ya mombasa haitutoshelezi kwa hivyo if it means importing oil to refine and sell at home and to kina Ethiopia, tutafanya hivyo

Ethiopia yenye plan ya kujenga yake na Djibouti! Haya nawatakia kheri! Ile pipeline ya Mombasa mwekezaji kaikimbia...

Oil & Gas Africa: Ethiopia Plans $5B Refinery In 10 Years
By Kevin Mwanza Published: March 19, 2015, 6:52 am


Print

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Ethiopia’s private oil marketer plans to spend $5 billion to build a refinery in the country within the next 10 years to meet a growing demand in the horn of Africa country that has had one of the highest growth rate over the last decade, Reuters reported.

Tadesse Tilahun, the chief executive of National Oil Ethiopia, said a decision to build a refinery that could produce between 200 000 to 300 000 barrels per day was in the pipeline.

“It is a firm plan because oil demand is growing in Ethiopia… about 10 percent each year from the annual consumption of 3 million cubic meters and in the next 10 years we expect that to double,” Tilahun told Reuters at an African oil refining conference in Cape Town. “I would assume in the next 10 years we should have the refinery on the ground.”

According to Forbes, National Oil’s shareholders include Saudi billionaire Mohammed Hussein Al Amoudi, whose investment portfolio in construction, gold, hotels and energy has helped amass an estimated fortune of over $10 billion.

If brought online, Ethiopia’s refinery will jostle for space in the African market with imports from India and the Gulf and would help other east African countries that have over the last few years discovered large deposits of hydrocarbons extract value from these finds.

Eastern Africa is the latest frontier in the global hydrocarbon hunt after gas discoveries off Tanzania and Mozambique and oil finds in Uganda and Kenya, Oil Review Africa reported.

Sign up for the AFKInsider newsletter — the most compelling business news you need to know from Africa and the African diaspora, delivered straight to your inbox.

- See more at: Oil & Gas Africa: Ethiopia Plans $5B Refinery In 10 Years

 

[ntita]

hehe.. wakenya na Kenya yao... nice trial

 

[Geza Ulole]

Ethiopian oil marketer says Africa needs to refine its oil
ADDIS ABABA | By Aaron Maasho

Workers are seen at an oil exploration site in Bulisa district approximately 244km (152 miles) North-West of Kampala January 20, 2012.
Reuters/Stringer

Ethiopia's leading private oil marketer plans to expand into neighboring east African economies and is interested in part financing a refinery after commercial discoveries in the region.

Tadesse Tilahun, CEO of National Oil Ethiopia, said untapped crude deposits in Kenya and Uganda handed governments and investors the opportunity to construct a refinery able to compete with cheap imports from India, the Gulf and beyond.

Doing so would help African countries extract more value from their resources and cut their import bills, Tadesse said.

"Africa's demand for refined products is growing hugely because of its economic growth. The crude findings are also increasing. That is the opportunity," Tadesse said in Addis Ababa as part of the Reuters Africa Summit.

"We want to (build) a refinery. We have already discussed this in principle with our shareholders, who are very much committed."

National Oil's (NOC) shareholders include Saudi billionaire Mohammed Hussein Al Amoudi, whose investment portfolio in construction, gold, hotels and energy has helped amass an estimated fortune of over $15 billion, according to Forbes.

Tadesse said other private and public investors would need to come on board.

Eastern Uganda has become the latest frontier in the global hydrocarbon hunt after gas finds off Tanzania and Mozambique and oil discoveries in Uganda and Kenya.

Even so, Sub-Saharan Africa faces headwinds supplying more of its own refined petroleum products. Regional cooperation and funding for oil-related infrastructure are proving slow, while foreign oil refiners and traders are flooding the $80 billion market with imports.

Existing pipelines also tended to run to the coast, Tadesse said, either for the export of crude or the import of refined products from small-scale refineries found near ports.

"That has to change," Tadesse said. "Refineries are now needed inland so that Africa can supply itself."

CONSTRAINTS

Tadesse acknowledged the price tag was problematic for many African countries. Oil production in Uganda has been delayed in part due to a row between the government and investors over the size - and thus cost - of a refinery in the country.

"It would be in our own interest, for all countries in this area, to have a common refinery, a joint facility, where we can take our own product," Tadesse said.

Kenya plans - but has made little progress towards - a new $2.8 billion refinery on its northern coast. Industry experts say Ugandan and Kenyan oil exports could reach 500,000 barrels per day - oil Tadesse would rather see stay in the region.

Founded in 2004, NOC now claims a 35 percent share of a market tightly controlled by the Ethiopian state. So too are other key sectors including banking, retail and telecoms, which the government says need shielding from foreign investors while the economy diversifies away from its agricultural base.

Tadesse said NOC had secured a license for fuel stations in neighboring Djibouti and targeted expanding its downstream operations into Kenya within five years. Plans to enter South Sudan have been shelved due to the four-month conflict there.

"We want to be a regional player," Tadesse said.

Oil consumption has doubled in 10 years in Ethiopia, one of Sub-Saharan Africa's fastest-growing economies and now the region's fifth-largest after leap-frogging Kenya.

Demand for oil in Ethiopia is seen tripling by 2025, indicative of the economic transformation under way in Africa's second-most populous nation which is still better known abroad for the famine of 1984 and communist-era purges.

But the pace of NOC's expansion at home hinges on the government relaxing its grip on the industry.

Tadesse said the government imported all fuel products and set the market price, allowing fuel stations a margin of just 4 U.S. cents per liter. Land rights issues also hindered growth.

"In no way can that be attractive to investors," he said.

Follow Reuters Summits on Twitter @Reuters_Summits

(Writing by Richard Lough; Editing by Susan Fenton)
Ethiopian oil marketer says Africa needs to refine its oil


MY TAKE
Livale I don't see a possibility of Ethiopia-Kenya pipeline as each one is trying to pull the deal to its country! BTW this report was before Uganda-Tanga pipeline was announced and now DRC Congo and South Sudan have shown interests to join Uganda pipeline while Kenya and Ethiopia keep trying to convince each other while a pipeline to Djibouti is U/C! If any Kenya believes there any prospects on LAPSSET then has to be built by Kenya alone according to MHO!

 

[bongo-live]

hmmmmh meanwhile kpc has completed a bigger pipeline to kisumu!! duuh..
East Africa: KPC - Oil Jetty to Revolutionise Petroleum Flow in EAC
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By Ojwang Joe
Kisumu — Kenya Pipeline Company has completed the construction of a parallel pipeline from Sinendet to Kisumu expected to enhance petroleum product availability in the Western region.
Addressing the press, Company Corporate Communications Manager Jason Nyantino said the 112 km, 10-inch pipeline runs parallel to the previous 6-inch pipeline.
"It is going to improve supply in Kisumu because in the past we've been having a pipeline which is six inches for the last two decades or so and Kisumu because of the small pipeline never had enough product."
Nyantino said the expansion would improve the fuel supply to the region where the demand is high.
"The demand for this region which is about 12 counties in Western Kenya is about 1.1 billion litres annually so this pipeline is going to enable us serve that market."
Nyantino said the development would also serve other parts of the East African region who consume Kenya's petroleum.
"Sixty per cent of product in Kisumu actually goes to neighbouring countries. Only 40 per cent is consumed in Kenya. So you see this town is a very strategic town in terms of serving the region and we are talking about raising Kenya's profile in the East African space. We're going to be able to utilize Lake Victoria to transport product from Kisumu using a jetty. We're going to invest in an oil jetty in the next one year or two. This Kisumu will never be the same."
"We'll be able to take product to Mwanza, Entebbe, Jinja, Kampala, over water. So that is huge."
The new pipeline awaits commissioning by President Uhuru Kenyatta.
capitalfm.co.ke

 

[Tim Choice]

Hongereni wakenya it's a good start

On a different thread, you were claiming to be a KENYAN, with funny non-Kenyan names like "USHASHI", dont to have shame at least?

 

[Mpendwa1]

wee mama kimya sana..njoo nikutomase

Sina uhakika "nikutomase" ni kusema nini lakini kama ni matusi...yangu haya hapa....mamako #$%@^^& na babako#$%^5 kisha unikome kama makoma yaliyo juu ya mti!!