KPRL merchant refinery gets first crude oil shipment

July 23, 2012
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Vehicles queue for fuel during past shortages/FILE
NAIROBI, Kenya, Jul 23 – The Kenya Petroleum Refineries Limited (KPRL) has received its first shipment of 82,000 tonnes of crude oil since transforming into a merchant refinery.

The latest cargo delivery is part of the 246,000 tonnes of crude oil expected to dock at the port of Mombasa by September this year.

“This is a milestone that marks our transformational process since the KPRL inception,” said – CEO Brij Mohan Bansal while receiving the first consignment at the – Kipevu terminal.

KPRL converted into a merchant refinery on- July 1 from a toll refinery after securing funding to purchase its own crude oil for processing into refined petroleum products to be sold to oil marketing companies.

KPRL received $250 Million (Sh21billion) from Standard Chartered Bank to fund the process on June 20, 2012.

“This is our first independent purchase of crude oil,” Bansal said.

The latest delivery was purchased at a cost of Sh5.46 billion from the United Arabs Emirates (UAE).

Galana Oil Company won the import tender through the competitive Open Tendering Process (OTS).

The crude oil shipment was loaded on July 7 at the Jabel Dhana port, in the UAE and arrived in Mombasa on the – July 21, 2012.

“The oil will be pumped to the KPRL’s Changamwe plant for processing. This is the same grade of crude oil currently being processed at KPRL and as I said earlier this is a major milestone for KPRL,” added Bansal.

KPRL’s Changamwe plant produces Liquefied Petroleum Gas (LPG) known as cooking gas, Premium Motor Gasoline (PMS), known as Super Petrol, Kerosene, Automotive Gas Oil (AGO) or Diesel, Industrial Diesel Oil (IDO) and Fuel oil, also known as Furnace fuel.

However the Energy Ministry is still facilitating the crude oil procurement through the OTS.

“The most competitive bidder shall be awarded the tender to procure the crude oil, which shall then be sold to KPRL,” Bansal said.

KPRL blends and stores petroleum products for the Kenyan market and export.

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