Académique Documents
Professionnel Documents
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Editorial 2 4
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In this Issue
Industry News
New entrant into LPG vouches for partial filling of cylinders
Cover Story
Open Tender System transparent, economical
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Better to share a small cake than scramble and destroy it Pipeline Coordinator 15
Pictorial
Industry pictorial
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Statistics
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Board of Directors Rida Elamir - Chairman (Libya Oil Kenya) Francis Njogu - Vice Chairman (Gulf Energy) David Ohana - Member, (KenolKobil Ltd) Sumayya Athmani - Member, (National Oil Corporation) Selest Kilinda - Member, (Kenya Pipeline Company) Jimmy Mugerwa - Member (Kenya Shell) Alexis Vovk - Member (Total Kenya) Issa Mohammed - Member (Hass Petroleum) Bimal Mukherjee - Member (Kenya Petroleum Refineries) Solomon Osundwa - Member (Hashi Energy) Billow Kerrow - Member (Trojan International) Alnoor Jiwan - Member (Petro Oil Kenya Ltd) George Kahira - Member (Galana Oil Kenya Ltd) Christian Callede - Member (Addax Kenya) Gerald Van Aswegen - Member ( SGS Kenya Ltd) Patrick Obath - Individual Member Varun Sharma - Individual Member Editorial & Production Alison & Davis Communication Tel - 020-2190370, Email: info@energyea.com Advertising Alison & Davis Communication & Acacia Media Services Tel - 020-2243413 (M) 0720 227104 Email: acacia.media@yahoo.com Design & Layout Rachael N. Musyimi Editorial Board - Wanjiku Manyara, Joseph M. Panyako, Mathias Muindi, Kimemia Mugo Contributors - Wanjiku Manyara, Kimemia Mugo, Mathias Muindi, Kennedy Senelwa, Timothy Simiyu
Petroleum Insight is published quarterly by the Petroleum Institute of East Africa. Views expressed in this publication do not necessarily reflect the position of PIEA. All rights reserved. Petroleum Institute of East Africa Fourth Floor, Bruce House P.O. Box 8936-00200 Nairobi Phone: 254-20-2249081, 313046, 313047 Fax: 254-20-313048 Email: admin@petroleum.co.ke Website: www.petroleum.co.ke
EDITORIAL
General Manager
From the
he year has started off positively with the stabilizing of the Kenya shilling and subsequent reduction of local fuel costs. Further, the Energy Regulatory Commission published the long awaited draft petroleum regulations for comments. These will pave the way for effective and efficient enforcement and compliance to the Energy Act 2006. The Act will require review and ultimate amendment to match the new Energy Policy. Globally, the risk of crude oil supply interruption and high fuel prices is looming following Irans threat to close the Strait of Hormuz during the intensified standoff between the West and Iran over the latters nuclear program. The year portends a lot for the sector with looming proposals by Treasury to reintroduce Value Added Tax on Liquefied Petroleum Gas and change in tax status of Jet Fuel and Kerosene with VAT exempt from zero-rated. It is our hope that our rebuttal of this intent will facilitate appropriate amendments being made to the VAT Bill 2011. The Industrys 2012/13 budget proposals have been submitted to Treasury and again, the suggestions for consideration therein focus on relevant instruments and strategies that should be implemented to trigger and spur growth and development in this sector whilst complimenting pertinent Vision 2030 aspirations. The East Africa Liquefied Petroleum Gas (LPG) training jointly conducted by PIEA and the World LPG Association is an important event this quarter. We encourage staff from LP Gas operational and marketing departments, relevant government ministries, as well as legal & regulatory agencies to participate. Transfer of knowledge specifically for LPG operational, business and safety practices will be paramount during the workshop. This is the first collaboration series in positioning the regional LPG sector workforce strategically to tap into the expected exponential growth of this segment. Consumer demand for energy and specifically petroleum, needs to be matched with efficient and effective supply chain infrastructure and systems for efficiency, affordability and reliability. Petroleum energy contributes the highest percentage of primary energy demand for East Africas modern economies and therefore remains the critical driver for the regions economic and social goals. In this Issue, we have featured product procurement in East Africa including the current supply arrangements and proposals by authoritative industry representatives on how to make necessary improvements. Wanjiku Manyara General Manager
Globally, the risk of crude oil supply interruption and high fuel prices is looming following Irans threat to close the Strait of Hormuz during the intensified standoff between the West and Iran over the latters nuclear program
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Petroleum Pumps & Dispensers Submersble Pumps Mobile Stations Automation Systems
YILMAZ Company Ltd Maasai Road off Mombasa Road Afriq Center No:02 P.O. Box 21040 - 00100 Nairobi, Kenya Tel: +254 20 204 90 57, +254 204 204 90 56 Fax: +254 204 90 54 Email: petroleum@ycl.co.ke Website: www.ycl.co.ke
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INDUSTRY NEWS
remier Gas, a newly incorporated Liquefied Petroleum Gas (LPG) trading company has made a revolutionary proposition to avail partially filled cylinders to low income earners. Incorporated last year, the company is introducing PIMA - a household LPG brand that will enable the lowest income segment of the population to buy affordable amounts of gas. According to the General Manager (GM), Premier Gas, Mr. Michael Momanyi, the company is targeting the Base of the Pyramid (BoP). These are Kenyans who have been unable to transition from kerosene or charcoal use in their households due to the prohibitive cost of cylinders and the amount of money required to refill them. We want to reach that segment of the low income population some of whom for a few spoonfuls of sugar or a dose of toothpaste to satisfy that particular need for the moment, Mr. Momanyi says. According to research undertaken by the company, shows that the energy spend for a house using LPG is lower than that for a household using charcoal and or kerosene in
most urban areas in Kenya. There are too many middlemen in the supply of charcoal to the urban areas and each makes profit on the commodity. The same case applies to kerosene in some far off rural areas. There is a place in Siaya where we found kerosene retailing at over KSh200 per litre, Mr Momanyi adds. The Premier Gas GM told Petroleum Insight in an interview that PIMA was born out of extensive studies on the access to and utilization of clean modern energy services amongst the disadvantaged in Kenya focusing specifically on LPG. Our revolutionary proposition, developed from the findings of this research, will enable the population at the base of the pyramid to access
ENGINEERING DESIGN
Petroleum terminal & depot design (including tank farm & tankage, bottom & top loading systems, metering systems, piping & pumping systems & fire protection systems) Product Blending Systems Service Station design, We want to reach that segment of LPG facilities design the low income population some of whom for a few spoonfuls of sugar Civil & structural engineeror a dose of ing for petroleumthat toothpaste to satisfy facilities, particular need for the moment Electrical design of petroleum facilities
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ENVIRONMENT ENGINEERING INCORPORATING COMPLETE ENERGY SOLUTIONS & SOCIAL DESIGN ASSESSMENT THE FOLLOWING SERVICES: Petroleum terminal &
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Design & specification for Petroleum terminal & depot design (including a tank gaugingbottom &tank farm & tankage, system top loading systems, metering systems, pipMaintenance programs ing & pumping systems & fire
protection systems Product Blending Systems Service station design: LPG facilities design Civil & structural engineering for petroleum facilities, Electrical design of petroleum facilities
Environment & Social depot design (including tank Design & specification for a terminal ContractorAssessment (ESIA) Impact health & safety manfarm & tankage, bottom automation systems Contractor gauging &Studies health agement Design & specificationsystems, for a tank Motor vehicle safety manage& top loading system Environmental & social safety management ment metering systems, piping Permit-to-work system developauditing & pumping systems & fire ment Motor vehicle safety Environmental site ENVIRONMENT systems) protection & SOCIAL ASSESSMENT Product Blending Systems HSE TRAINING & remediation assessment management Environment & Social Impact Assessment consultingprovides a variety The company (ESIA) Studies Station design, Service of specialized training courses Permit-to-work system management Environmental & social auditing LPG facilities design forWaste & manufacturing the energy Environmental site assessment & remedevelopment sector consulting Civil & structural engineerdiation consulting In Kenya, the company is licensed Energy conservation Waste management ing for petroleum facilities, by the NEMA (Ministry of Enviconsulting & DIT (Ministry Energy conservation ronment), DOSHS Electrical design of petroleum facilities
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Preparation of tender docuEnvironment &analysis of tender OCCUPATIONAL HEALTH Social OCCUPATIONAL mentation & Safety & health auditing The company provides a bids OTHER SERVICES Impact Assessment (ESIA) Developing programs for occupational HEALTH PROJECT specialized training cost estimating, Procurement & installation Asset valuation, healthvariety of exposure monitoring, laboratory Studies Project Management/ conSafety & technical audit/ risk assessment,health auditing health & safety, hearing conservation, MANAGEMENT inspections, drafting operating personal protective equipment & chemicourses for the energy & & feasibility studies for struction supervision Developing programs procedures, Environmental & social cal safety Preparation of tender Testing/Commissioning on policy, legislation, market manufacturing sector occupational health documentation & analysis auditing Surveys & logistics exposure SAFETY & In Kenya, the company is monitoring, FIRE PROTECTION of tender bids AUTOMATION Outsourcing staff to client projlaboratory health & safety, Incident investigation & root cause analyEnvironmental site for full Design & specification Procurement by the NEMAects on a full-time basis & installation sis licensed hearing conservation, automation of metering sysMaintenance programs Project Management/ tems. assessment & remediation Fire risk assessments & firefighting equippersonal ment reliability (Ministry of Environment), protective construction supervision consulting Hass Plaza, 4th Floor, Lower Hill Road, Upper Hill, equipment & chemical DOSHS & DIT (Ministry of Testing/Commissioning safety P. O. Box 16989 00620, Nairobi, Kenya Waste management Labor) as a training Telephone: (+254) 20 273 0308, 10 273 3222 services consulting Fax: (+254) 20 provider273 0296 AUTOMATION SAFETY & FIRE E-mail: info@kurrent.co.ke Energy conservation Design www.kurrent.co.ke for & specification Website: PROTECTION full automation of consulting Incident investigation
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metering systems. & root cause analysis Design & specification 5 Asset automation for a terminal valuation, cost Fire risk assessments & firefighting equipment estimating, risk assessment, systems
OTHER SERVICES
Tele
INDUSTRY NEWS
news news
IN IN
PIEA and the World Liquefied Petroleum Gas Association (WLPGA) will run an East Africa Liquefied Petroleum Gas Training on 21 23 March, 2012 at the Hotel Intercontinental, Nairobi. The training is an outcome of the inaugural East Africa WLPGA Summit hosted by Kenya last July. The training is one of a series planned for the region aimed at building adequate capacity for this fast growing business segment. Tullow Oil will finally proceed with the farm out deal to CNOOC and Total following approval of the transaction by the Government of Uganda. Subsequently, development of Ugandas discovery can now take off in earnest placing Uganda in the league oil producers and exporters. It is expected that the first substantial oil flows will materialize in 2015/16. Uganda will set up a national oil company according to the provisions under the countrys Exploration, Development and Production Bill aimed at regulating the budding oil industry. The bill, which is one of three new bills, will also establish an independent authority to reduce governments direct participation in the petroleum sector business. President Kibaki is expected to preside over the ground breaking ceremony for the construction of the Lamu Port in early March. This will come after the signing of the Memorandum of Understanding (MOU) in February 2012 between South Sudan and Kenya to develop a pipeline from South Sudan to Lamu. This project is expected to revolutionize the regions oil industry. The project will not only open up Kenyas second transport and economic corridor and indeed fast-track it now that South Sudan would want the 2000 kilometer pipeline up and running within 18 months upon commencement; but it will also be the gateway to the much needed key infrastructure developments under the Lamu Port South Sudan and Ethiopia Corridor Project. Kenya through the Ministry of Energy has commissioned a pre-feasibility study to evaluate the countrys current capability to undertake nuclear energy production as preparations are made to set up plants to begin production in the next ten years .The study which will look at all related issues ranging from legal and regulatory requirements, skills and manpower as well as the market for generated power. The pre-feasibility study is expected to pave way for actual construction of nuclear plants with the first one scheduled for commissioning in 2022.The completion of the nuclear electricity project will see the country generating up to 19 percent of its energy from nuclear sources. Currently, the Kenyas electricity mix is made up of hydro which accounts for the largest share at 49 percent, thermal and geothermal. General Electric is planning to set up a 100megawatt (MW) wind power plant in Ngong which is expected to be in operation in two years, a time when the 300MW Lake Turkana power project is also expected to be completed. These projects are expected to significantly improve the countrys power demand which has been growing steadily at 5.1% since 2006.
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Uganda Premier Agencies of Uganda Ltd. 2nd Floor, Raja Chambers 3rd Parliament Avenue P. O. Box 1411 Kampala, Uganda Tel: 256 41 343387 / 343395 Fax: 256 41 341608 E-mail: frida.nkata@pa-ea.com
Kenya Kenya Premier Agencies of Kenya Ltd.Ltd Premier Agencies of Kenya Westlands Plaza-next to The Westlands No.18 Kabarsiran Avenue, Mall P.P. O. Box 44432-00100 Nairobi, Kenya O. Box 44432-00100 Nairobi, Kenya Tel: 4440093/4 512979 Fax: Tel: 4450544/ 0722Fax: 4441820 4456147 E-mail: sales@pa-ea.com E-mail: pumpservices@pa-ea.com
Tanzania Premier Agencies of Tanzania Ltd. Plot No. 4, Bandari Road Kurasani Area P. O. Box 78666 Dar-es-Salaam, Tanzania Tel: 255 22 2124397/8 Fax: 255 22 2124395 E-mail: robert.singu@pa-ea.com
INDUSTRY NEWS
L-R, Assistant Minister for Electricity and Renewable Energy, Eng Mohammed Mahamud, Hashi Energy, CEO, Mr Hashi, Mrs Hashi and Export Coordinator, Catherine Kahihia and Executive Director, Edgar Omotto (partly hidden) are assisted by a Hotel Intercontinental chef to cut a cake in celebration of Hashi Energys 20th Anniversary celebrations.
ashi Energy celebrated its 20 year anniversary in November last year and unveiled a new LPG brand during the commemorative event held at the Intercontinental hotel, Nairobi. On hand to preside over the anniversary celebrations was Assistant Minister for Electricity and Renewable Energy, Eng Mohamed Mahamud, accompanied by leading personalities in the oil industry, among other guests. According to Mr Solomon Osundwa, the Commercial Director, Hashi Energy, the company has come a long way within 20 years. Hashi Energy was incorporated in 1991 as a privately owned company whose core business is importation, distribution and marketing of petroleum products. For about five years, before 1991, the founders - Mr and Mrs Hashi, with assistance from Ms Catherine Kahihia, who works with the company to date, used to trade informally ferrying kerosene in trucks from Mombasa to various parts inland. Thus, the company is one of the oldest indigenous oil marketing companies in the region. Expansion has been consistent, starting with a contract to distribute kerosene for Caltex in Eastern Congo, Rwanda, Burundi and Sudan. These were areas where the multinational could not reach. The company successfully executed the contract over several years. In 1996, Hashi Energy incorporated a subsidiary in Uganda. Mr Osundwa attributes continued growth to the companys business to business (commercial) portfolio. In 2007, Hashi won the Minicom Rwanda fuelling contract for that year and 2009. In 2008, the company was also awarded the Electrogaz Rwanda fueling contract of 40,000 m3. In Nairobi, the company acquired a terminal from Mid Oil Africa in 2008, acquired the former Agip Terminal in Mombasa from Shell in 2008, won the tender to supply West Nile Rural Electrification Company in Uganda in 2009 and operationalized Kenyas second largest LPG facility in 2010. Last year, as the company clocked 20 years, and unveiled a new LPG brand, it also achieved ISO 9001 certification.
Today, the company supplies over 240 million litres of petroleum products to the region, annually. It has a capacity to supply 360 million litres per year, making it the market leader in export of petroleum products from Kenya to the region. We are continuously seeking to position the company as a leading player in the Africa down and mid-stream market. Our strategy focuses on several key target market segments. We are taking petroleum products closer to the people and investing in storage facilities within the region. We are increasing our volumes and diversifying our product range, Mr Osundwa says. The venture into LPG started in 2010 with initial focus on institutions such as schools and hotels in Mombasa. Introduction of cylinders started in phases last year. In April, Hashi commenced cylinder distribution in the coast region, distributing in Nairobi in October and culminating in the November launch. Some of the attributes that has sustained Hashi Energy include a professional and focused management, ability to make quick decision making, excellent customer service and excellent partnership with banks and suppliers. The company upholds creativity, innovation, integrity, professionalism and teamwork amongst staff. But like other indigenous oil marketers, the company has faced some challenges. Mr Osundwa points at the drop in international prices in 2008, the 2009 economic crunch, the storage constraints in Nairobi and Mombasa and high cost of financing as some of the bottlenecks. Looking forward, Hashi sees an opportunity in piped LPG in the region. According to Mr Osundwa, the company is set to grow its market share through innovative strategies. For instance, the company is focusing on how to make piped LPG available to households as is common in developed markets. By the end of next year we shall have developed our first piped gas project in Kenya. We also intend to keep growing in Kenya and in retail, Lubes and commercial accounts while retaining and growing our traditional export market, Mr Osundwa adds.
SPECIAL FEATURE
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Advanced EMS Auditor Course IEMA Approved/Course No. A17262 Certificated by IRCA
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Phone: +254 20 273 3690/9 Fax: +254 20 273 3664 Email: enquiries.kenya@sgs.com Web: www.training.sgs.com/kenya
Notes 1. SGS reserves the rights to change/cancel or postpone these schedules on its own discretion. All effort will be made to notify clients in advance. 2. Participants shall be provided with all the necessary course materials (English), refreshments and lunches.
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INDUSTRY NEWS
ational Oil Company of Kenya (NOCK) was named Africa National Oil Company of the year has been received in 2011 by Petroleum Africa Magazine. Speaking with Petroleum Insight National Oil Corporation of Kenya (NOCK) Managing Director Sumayya Athmani said that 2010/11 has been one of the most exciting years in the corporation. Despite the challenges experienced with high international prices as well as petroleum distribution infrastructure constraints facing the country our sales grew by 46 per cent compared to the previous year, said Athmani. Athmani added that the year will be recalled because of the significant steps they have made
as coporate. It is the year when the Government awarded us license to undertake oil and gas exploration in block 14T within the tertiary rift making the first time in history that the Company has signed Petroleum sharing contrast (PSC) to undertake its own gas and oil exploration activities, she notice. The fact that they managed to add additional 15 retail stations bringing the tally to 72 is also an enough reason to remember that financial year. Athmani continues that it has been a journey for them to get recognition for the Corporate doesnt have production of its own but in 2010 the Corporate rolled out unique retail expansion on smaller and cost effective stations. These stations are community oriented serving smaller towns and markets. The objective is to ensure that every Kenyan can easily access National Oil products from whichever part of the country they may be in, she says. It is through this model when they are looking forward to partner with local communities in station ownership and Management. According to Athmani direct negotiation has been one of the main points the petroleum Africa Magazine considers when judging performance this is due to the perceived nature of the country as an oil and gas exploration frontier. However she says that with the growing interest in the countys acreage, the Ministry of energy with the advice of the National Fossil Fuels Advisory Committee, which is an interministerial committee charged with advising the Minister for energy on upstream matters, has been evaluating the possibility of Kenya adopting license rounds. For now the company project a strong growth for the financial year 2011/12 on the back of rapid expansion of the retail network coupled with recent roll out of new products including their own brand of LPG lubricants as well as the National Oil fuel card, all of which the market received very positively. As observed earlier, infrastructure development is a key area of focus for us moving forward, and similarly, increased direct participation in upstream through our work program on Block 14T,she said. However while doing all this we shall also continue our retail network expansion. We expect to be a key player in the importation of petroleum in the country by actively participating in the monthly industry open tenders as well as through importation of our quota allocation, she observed. According to Athmans point of view the Company has nowhere to go but up. National Oil Company of Kenya (NOCK) was established three decades ago to oversee the countrys upstream industry and has been in operation for 26 years. Over the years the Companys mandate has expanded to include downstream activities and it is here that the country has shone through as NOC to be reckoned with.
Appointment
Mr Momar Nguer has been appointed senior vice-president, Africa-Middle East, Total supply and Marketing. Mr Nguer was appointed to the new position on December 15, 2012 to succeed Mr Alain Champeaux, who left his operational responsibilities after a 35-year career in the Total Group. The new senior vice-president for the region started his career in 1982 in Hewlett Packards France finance department. He joined Total in 1984, serving in various positions. After a stint at Total Africas headquarters, he was named vice president, marketing, at Total Senegal in 1985. Returning to Paris headquarters in 1991, he was appointed vice president, retail network and consumers, Total Africa. In 1995, Mr Nguer became chief executive officer of marketing subsidiary, Total Cameroon and was subsequently named chief executive officer of marketing subsidiary Total Kenya in 1997.
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COVER STORY
he East African region is a net importer of petroleum products and is therefore vulnerable to the dynamics of supply in the international markets. Petroleum Insight spoke to key personalities in the regions supply system and obtained insights on why the region is in all-out battle to enhance efficiency and bring down prices. Kenya was ahead of the other countries to introduce the Open Tender System (OTS). Tanzania and Uganda has followed suit. Speaking to Petroleum Insight, the chairman, Supply Coordination Committee and Shells East Africa Sales and Operations Manager, Mr Jimmy Mugerwa says given the options, a bulk procurement system such as the OTS goes a long way to ease supply constraints. He notes that the OTS is organized in a way that it has well stipulated rules and regulations that are fully implemented and adhered to by all its signatories. It allows for bidding freely and fairly. Whoever then gives the best prices wins the tender to import oil and petroleum products on behalf of the rest.
The supply co-ordination committee is structured in a way that it has an established secretariat- a team of people; under the pipeline coordinator based in Nairobis Upper Hill area and they implement directives on a daily basis
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COVER STORY
rude oil imports are received at Kenya Pipeline and Refineries Limited (KPRL) in parcels of approximately 80,000 tons. Crude is receiving and discharge is through Kipevu Oil Terminal Jetty into refinery tanks located at both Kipevu and Changamwe. Once received, crude is allowed to settle for thirty six (36) hours in preparation for processing and crude intake is regulated dependent on production requirements. The Mombasa refinery has two process trains each capable of running independently and produces LPG, Petrol (regular and premium), Illuminating Kerosene and Jet fuel, Diesel, and heavy fuel oil through a separation process (distillation) and in some cases chemical processes (catalytic conversion). Bitumen is also produced when bitumen bearing crudes are availed. The current operation model is toll processing where Oil Marketing Companies (OMCs) own the crude and products. Each marketing company advises KPRL on desired product pattern (programme) which when put together for all participating OMCs guide the production pattern. Finished products are stored in the refinery
tanks awaiting dispatch to terminals nominated by OMCs. The products are evacuated from the refinery to the main pipeline for onward distribution to Nairobi, Western Kenya, local depots (Shimanzi and Changamwe), to the power companies as well as back loading of barges and truck loading. According to KPRL General Manager, Mr John Mruttu, with the OTS, the crude delivery pattern is defined easing refinery operations and supply to OMCs. However, there are supply issues during power interruptions, and the piracy threat along the Somali coast has sometimes resulted in delayed arrival of some crude parcels as ships take a longer route to avoid the area.
For each OMC, KPRL maintains an account showing the transactions (deliveries, receipts, programmes etc). KPRL ensures that each OMC receives their product through good and efficient communication and reconciliation of accounts, Mr Mruttu says. But KPRL is limited to processing 1.6 million metric tons per annum which is less than 50% of the name plate capacity. This means that the refinery has to operate at reduced throughput to minimize outages whilst keeping the plant steady. The refinery has consistently refined 1.6 million metric tons per annum. Refinery fuel and loss which was at the level of 5.8% has been reduced to 4.8% level. Once KPRL is converted to merchant mode, it will select most optimum crude blend for the refinery. KPRL had an option to wait until upgrading to convert but in the intervening period, conversion will pave the way for making investment for operational and performance improvements. Murban crude oil which is predominantly processed in the refinery may be replaced by alternative crude blends to enhance refinery profitability. KPRL will source crude through the OTS. OMCs will purchase the products derived from processing 1.6 million metric tons per annum at a price determined by ERC. Discussions with the authorities (on conversion) are at advanced stage and required legal notices are expected shortly. The date for switching to merchant mode will be announced once the legal notices have been published, the KPRL GM says.
enya Pipeline Company (KPC) has announced plans to replace the existing Nairobi to Mombasa pipeline. The firm has placed an international tender calling for a consultant to carry out detailed engineering design, prepare tender documents and supervise implementation of the project. The existing pipeline is approximately 450 km long transverses from Mombasa to Nairobi and has been in operation since 1978. The pipeline has eight pumping stations each with two pumps rated at 440m3/hr. According to KPCs Managing Director, Mr. Selest Kilinda, the new pipeline shall meet the projected demand up to year 2044. The consultant will be expected to design a new replacement pipeline optimizing the use of the existing pipeline facilities to meet the growing demand, said Mr. Kilinda.
Petroleum accounts for 21 percent of the countrys primary energy source. The demand for petroleum has been growing steadily at above 10 per annum. Some of the petroleum product is used in electricity generation in thermal plants. The consultant will also carry out a technical and financial evaluation to determine the optimal pipe size considering the different demand scenarios, said Mr. Kilinda. The pipeline will also be redesigned and the existing fire fighting system upgraded to ensure effectiveness for intended purpose incorporating remote controls for swift, efficient and safe operations as well as rehabilitation of worn out facilities. In 2008, KPC commissioned PS2-Taru, PS4Manayani, PS6-Makindu and PS8-Konza in order to improve on the initial installed capacity of 440 M/hr to the ultimate capacity of 880 M/H between Mombasa and Nairobi, a demand that will be needed in year 2030. KPC is currently constructing a parallel pipeline from Nairobi to Eldoret in order to enhance the system flow rate by 378M3/hr. The Capacity Enhancement Project is strategic not only for the long term financial stability of the company but also for ensuring reliable and adequate supply of petroleum products to Western Kenya and the land locked countries. Kennedy Senelwa
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COVER STORY
Better to share a small cake than scramble and destroy it Pipeline Coordinator
The Kenya Pipeline Coordinator, also known as the Oil Industry Secretariat is a crucial reference point for oil marketers in the East African region. The Pipeline Coordinator has mediated between Oil Marketing Companies (OMCs) and other players such as government entities since the 1970s in a highly competitive and challenging market environment. Petroleum Insight spoke to Mr Joel Mburu, Pipeline Coordinator for the last six years.
PI: What are some of the issues that arise while sharing joint facilities? Exerpts: Petroleum Insight (PI): Briefly go over the role of the Pipeline Coordinator and the Oil Industry Secretariat. Mr Joel Mburu, Pipeline Coordinator (PC): We offer services to OMCs in as many issues that require sharing of joint facilities and services. The secretariat is the reference point on issues of product allocation and access from Kenya Petroleum Refineries Limited (KPRL) and in the Kenya Pipeline Company (KPC) system. We also coordinate joint product tenders on a monthly basis for both local and transit supply. In addition, the secretariat closely liaises with KPC, raising alarms where prolonged stock gaps are envisaged and offer advice on how to narrow them. We also gather and disseminate relevant information. PC: For instance, crude for various oil marketers is processed together at KPRL. We are involved in determining what amount of various products each marketer will get. Marketers are not always assured of getting 100 percent of their ordered products due to various constraints at KPRL. The same applies along the pipeline. We therefore use different parameters such as market share and the information we get from KPC every morning. PI: What is your jurisdiction? PC: As given by the Supply Coordination Committee. PI: What is your take on the Open Tender System (OTS)? How does it compare with direct imports? PC: The OTS is more structured and coordinated. It offers security of supply as there are clear delivery dates and penalties for failure. The system is cheaper in the sense that they got priority
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COVER STORY
berthing and tank space thus lower demurrage. The OTS imports for products also offer great economies of scale. PI: What can East African countries learn from each other? And what can the region learn from other more developed countries in procuring petroleum products into the region? Already Uganda has joined the Kenya import supply chain. Tanzania has started an OTS whose full details I am yet to get. Storage space for strategic stocks are limiting compared to developed countries thus volatility of prices felt almost immediately in the region. Could term supply contracts for a period save us? PI: What challenges does the Pipeline Coordinator undertake on a day-to-day basis? PC: Being a referee in a really competitive environment. We have to ensure fairness in the use of common-user facilities which are constrained. Given the chance, competitors can use the common facilities at the disadvantage of each other. We have lobbied and will continue to advocate operational modalities that will enhance optimum and fair use of common-user facilities. PI: What are some of your most memorable experiences as Pipeline Coordinator? PC: When OMCs saw the need to share the limited shared KPC facility fairly and abide by established rules for shar-
ing. This made imports predictable. Before 2004, an OMC could import product and keep it for prolonged durations in the KPC system. This caused problems for other OMCs along the supply chain. The minister for energy intervened and shared use has grown in effectiveness since that time. The other period I can recall when we spent several sleepless nights is during the change in tax regime to prepayment of custom duty. The Kenya Revenue Authority (KRA) initially approached the issue with a heavy hand. They were unwilling to engage with industry players and moving petroleum products both for local and transit almost ground to a complete halt. Interventions had to come from the topmost echelons of government in Kenya and Uganda. PI: What is your advice to oil industry players? PC: It would help to agree on how best to utilize the limited shared facilities for the benefit of all. Someone once told me if given a cake to share, its best to agree on how to cut it amongst yourselves rather than all scramble for a piece largely succeeding in having most of it on the floor in crumbs PI: How do you perceive the future of the oil industry in the East African region? PC: Economic growth calls for a look into our supply chain critically to ensure we keep pace with it. The region is becoming a critical entry point for central Africa and this is an opportunity.
Petroleum Insight (PI): How far are plans to adopt an Open Tender System (OTS) similar to Kenyas in Tanzania? How is it going? What was the experience before? The Chief Executive (CE): It is no longer at the plans stage. We have, in fact awarded two tenders to date i.e. Jan - Feb 2012 and March - April 2012. Supplies for the first tender period are underway at the moment. We have seen two very visible changes as of today: a) Demurrage has come down from a peak of 50 days to just 4 days. This is probably due to the orderly sequencing of incoming vessels due to the fact that there is now only a single supplier b) All imports are now through a single point of customs. I am sure this will benefit the revenue authorities. PI: What are some of the other anticipated changes? CE: With the commissioning of the SPM we hope to see pricing benefits at least on diesel.
PI: Who are the main players in Tanzanias new system? What are their various roles? CE: In the new bulk procurement environment, all imports are coordinated by the Petroleum Importation Co-ordinator Limited (PICL), which is a company guaranteed by the EWURA Licenced Oil Marketing Companies who are required to be members of this company. The PICL which is formed on the strength of a government gazette notification is managed by a board of six directors whose tenure and composition is also defined in the governments rules. The gazette also provides for the formation of a bulk procurement technical committee which reports to the minister. The committee oversees the activities of the PICL. PI: What challenges are oil marketers in Tanzania facing along the supply chain? CE: We are now faced with the challenge of setting up the processes in PICL. Currently, we are tackling the issue of vessel discharge losses which are being apportioned to all the buyers.
Another issue is that of ensuring supply of product to oil marketing companies in line with their orders. PI: How can these challenges be addressed? CE: By clearly defining the various processes PI: What rules and regulations govern procuring petroleum products into Tanzania? How are they enforced? CE: The Petroleum Act (Cap 392) provides for the Petroleum (Bulk Procurement) Regulations, 2011 (made under section 33 (2)). These are enforced thru the PICL. PI: Which procurement system would you recommend for East African countries? CE: Given the fact that EAC Countries are dependent on import of petroleum products, the bulk procurement of products can and should be resorted to if a Cost Benefit Analysis (considering all the operational issues) favours a reduced foreign exchange bill.
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COVER STORY
in Kenya or abroad. With advent of OTS, Uganda companies are procuring jointly under OTS with their sister or partner companies in Kenya. PI: What prompted Uganda to introduce an Open Tender System (OTS) similar to Kenyas? When was this done? In the past Ugandan companies have struggled to get sufficient ullage to import directly into Kipevu Oil Terminal. This resulted in very frequent long delays in ship discharge leading to high demurrage and often stock outs. Therefore when the Kenya Government offered opportunity for Uganda companies to join OTS, the opportunity was taken and has since resolved some of these challenges. PI: How is the OTS working for the oil marketers, the Uganda government and other players? So far, so good. The procurement is much more organized, ullage availability is much more predictable and demurrage amounts have drastically reduced. PI: What are some of the notable changes since Uganda started using the OTS? Lower demurrage & fewer stock outs PI: What challenges are Ugandan oil marketers facing along the supply chain? Being landlocked, the high cost of logistics and the need to operate with large stocks in the transit system are probably the biggest challenges. PI: How can these challenges be addressed? More discussion and coordination is needed with governments and their agencies. And also, more investment in for instance, port import facilities, the pipeline system etc. PI: What rules and regulations govern procuring petroleum products into Uganda? Are they enforced? The Petroleum Supply Act enacted some time back is only recently beginning to be enforced. Process is still a long way but for a start all Companies have applied for licensing under this Act for the first time. PI: Which procurement system would you recommend for East African countries? With limited import facilities as it is now, joint procurement such as the present OTS system remains the best. Unfortunately, it limits competition and also puts the entire economy at the risk of single supplier. So in future, if facilities were adequate, then allowing more importers to source and arrange separately would facilitate more competition and better security of supplies.
Excerpts: PI: Thank you for granting Petroleum Insight this interview. Where does APMP draw its membership from? APMP: The membership of APMP is open to corporate entities that are; In possession of valid petroleum distributorship License Incorporated in the Republic of Uganda. Have operated in Uganda uninterrupted for at least 2 years Conform to laws, regulations regarding their operation in Uganda. There are three categories of membership, Permanent, Associate Members and Observers. PI: What are APMPs objectives? APMP: Promote and share best practices in area of Health, Safety and Environments. Establish and maintain strong and sustainable relations with Government, Administrative, Civil and Professional authorities. Manage public relations, image and reputation issues on behalf of the Association. Cooperation with Government Agencies through sharing of experience and knowledge of the Industry. Defending financial interest common to the Petroleum Industry and safeguarding consumer interests. Briefly go over the history and background of the Association of Petroleum Marketing Professionals (APMP). PI: How is the association or its members involved in petroleum products procurement into Uganda? The Association is represented and Chairs the Supply Coordination Committee which advises Government on Petroleum Supply issues. PI: Briefly describe the process of procuring petroleum products into Uganda. Until recently, each company individually arranged supplies, usually with assistance of sister companies
The procurement is much more organized, ullage availability is much more predictable and demurrage amounts have drastically reduced.
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INDUSTRY PICTORIAL
National Oil Managing Director Ms. Sumayya Hassan-Athmani awards David Mogikoyo, a final year Architecture student at the University of Nairobi for emerging the best in a National Oil inter-university design competition.
Assistant Minister for Electricity and Renewable Energy, Eng Mohammed Mahamud presides over Hashi Energys 20 years anniversary celebrations in November last year
Cutting of cake by some of Norken founding members during the 10th Year anniversary dinner on 24th Nov 2011 at the Sarova Panafric Hotel Nairobi
A customer receives a PIMA gas cylinder from a Premier Gas Company dealer in Nairobi. The new LPG brand was launched this year.
Territory Manager- Anthony Muraya, Sales and Marketing Manager- Millicent Onyonyi, Longest serving dealer Madan Aggarwal and Managing directorRida Elamir
Weights and Measures, Julius Nyamu presents on the organizations behalf during the 4th Quarter, 2011 PIEA public forum. Seated behind are L R, Mr Stephen Mallowah, Executive Director, Anti-Counterfeit Agency, Eng Kaburu Mwirichia, Director-General, ERC and Mr Moses Ngonga of Telemetric Venture.
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TRAINING PICTORIAL
Participants of the Emergency Responders training in Kinungi pose for a group photo
Participants of Total Kenyas fleet owners training held last December at Total Training Centre in Hurlingham in a group photo
An Emergency Responders Training Participant receives a certificate from a St. Johns and National Oils representative
Oil industry stakeholders listen keenly to proceedings during 4th Quarter 2011 public forum organised by PIEA
Participants of Petroleum Stocks Management Training in a group photo together with PIEA resource persons
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INDUSTRY NEWS
he Highway Emergency Response Plan (HERP) has entered a new implementation stage with the launch of training for volunteers along the transport corridor. The training is aimed at building capacity of the emergency response teams as a curtain raiser for full operationalization of the HERP. The first phase entailed training of emergency response centre team leaders from each location drawn from the oil industry as well as St. John Ambulance. The successful training was held in August 2011.
The second phase, now ongoing, entails training of staff and volunteers of St. John Ambulance at each of the response centre on handling petroleum related incidents and accidents. This is branded; Emergency Responders training and is being done at each response centre. So far, two have already successfully been done, one in January 2012 and the other one in February 2012. During the Emergency Responders training, a wider spectrum of stakeholders is incorporated, an inventory of the available material and equipment is taken to enable
he National Environmental Management Authority (NEMA) received ISO 9001:2008 in December 2011. The Authority was awarded the ISO certification by Bureau Veritas who were the external auditors. NEMA also unveiled a new logo during an event held to mark the ISO certification milestone. Acting Director General, Dr Ayub Macharia said during the launch that ISO certification will make NEMA stronger as an agency in its pursuit to provide services that match international standards. According to Dr Macharia, the journey to ISO certification by NEMA was set off in May 2010 by the desire to ensure that the quality management system of the Authority enables
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INDUSTRY NEWS
Mr Rida Elamir was elected the new Board Chairman taking over from Mr David Ohana, the General Manager, KenolKobil whos two terms expired accordingly.
Mr Francis Njogu was elected Vice Chairman taking over from Rida Elamir whos two terms expired accordingly. Francis is the Founder and Chief Executive
Vision
Mission
To provide a forum for expertise and excellence in the oil industry in the East African region with the aim of promoting professionalism and free enterprise in petroleum business supported by the highest business operating standards, and adherence to Environment, Health and Safety ideals.
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INDUSTRY NEWS
Participants of the harzardous cargo drivers training pose with their certificates in December last year
A: I hope to work with all stakeholders to realize PIEAs vision of building expertise and excellence in the petroleum industry in the region and continue our mission of, providing a forum for developing expertise and excellence in the oil industry in the East African region with the aim of promoting professionalism and free enterprise in the petroleum business supported by the highest business operating standards, and adherence to Environment, Health and Safety ideals. I hope we can expand into Uganda & Tanzania and engage the regional governments more to ensure industry issues are timely addressed to benefit the public and the oil industry stakeholders. Q: What is your vision for the oil industry? A: Apart from a profitable oil industry, we would like to see a safe and responsible industry that cares for the community in which it operates. Q: What are some of the salient issues that you felt strongly about as Vice-Chairman that you want to address during your tenure? A: Safety we have had several serious safety incidents including the Sinai incidents that I feel need further public education to avoid similar incidents in the future. Q: What strategies will you adopt to drive your vision as PIEA Chairman? A: Continue a number of initiatives currently used by PIEA to engage stakeholders. These include public forums, meetings with government and regulators and press communication and briefings to advise on issues as they arise to ensure general public education and awareness. Q: What message would you like to send to oil industry players? A: Lets ensure we act responsibly to secure the countries in which we operate and our long term benefit.
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INDUSTRY NEWS
oil industrys emergency response procedures. The investigation and the interviews had no criminal character and the information gathered will be treated with high confidentiality and will be legally privileged to the committee members and interviewees only. The report will not be used for any court proceedings whether civil or criminal in nature. Parties intending to do the latter have to carry out their own investigations. However, if security agents in their own investigation perceived areas of interface that required the committees cooperation then this would be granted with a high degree of
confidentiality and a commitment for non-disclosure. In an effort to implement the recommendations therein, a mechanism under PIEA has been established to implement all the recommendations and in addition, convert the findings to industry standards, best practices guidelines and conditions for licensing of petroleum storage facilities for advancement of industry operations. Indeed, the relevant comments have been included in response to the draft petroleum regulations that were gazetted by Energy Regulatory Commission in December 2011.
urrent Technologies concluded and submitted proposed new LPG standards and regulations for the Ministry of Infrastructure, Rwanda towards the close of 2011. The consulting firm had been contracted by the Rwandan government to develop standards and regulations to manage the EAC member states growing LPG sector. Eng James N. Mwangi, the Chief Executive Officer (CEO), Kurrent Technologies Ltd says that the project is among other key engagements in the companys stable which affirm its position as the leading consulting firm for the energy sector in East and Central Africa.
The program, which will be implemented in phases will improve our efficiency, enhance our capacity to execute major infrastructural projects, enhance cost control and raise staff morale. Our focus is to give more value to our clients, Eng Mwangi says.
The company is positioning itself for a fresh impetus in growth after successfully executing key energy undertakings independently and with strategic partners in the last few years. As a matEng James Mwangi, ter of fact, Kurrent Technologies was involved in the MD Kurrent legal drafting of Petroleum regulations and Electricity Technologies tariffs for the Energy Regulatory Commission last Last year, Kurrent Technologies, alongside Mott Macyear in conjunction with Economic Consulting Associates. donald, UK undertook a feasibility study for a Liquefied Natural This was in addition to a Health Safety and Environmental Gas (LNG) import facility for the Kenya government at the coast (HSE) performance review for the countries petroleum indusregion. The two partners are now working on a study for an LNG try for ERC. fired power plant in the same area. In early January, Kurrent Technologies Ltd rolled out an integrated Enterprise Resource Planning System (ERPS) known as Nolan 3.0 to improve its internal systems. In Kenya, the program is used by leading engineering firms such as Gibb Africa, Howard Humphrey and a few major architectural firms. The core functions of Nolan 3.0 with detailed sub modules include project management, quality management, administration and development, human resource, finance, payroll as well as timesheets.
The company, working alongside Trident Engineering is a consultant for Africa Gas Oil Ltd in the ongoing construction of a massive LPG terminal in Mombasa. Kurrent Technologies is also conducting HSE training for RVR staff and continues to offer TapRooT Training world wide. The company is also involved in a major renewable energy project that is under execution. It is also currently involved in the construction of several major petroleum terminals in the region. It has made great major breakthroughs in the renewable energy sector.
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INDUSTRY NEWS
www.petro21.com
43rd PetroAfricanus Dinner 3rd Eastern Africa Oil, Gas & Energy Conference
27 -28 March 2012
Serge Matesco, Vice President, Sub-Saharan Africa, Total, Paris HE Hussein Abdi Dualeh, Minister of Mining, Energy & Water Resources,Republic of Somaliland Sumayya Hassan-Athmani, Chief Executive Officer, National Oil Corporation of Kenya Sam Malin, President & Chief Executive Officer, Avana Petroleum, Madagascar Duncan Clarke, Chairman & Chief Executive Officer, Global Pacific & Partners, Johannesburg Andrew Windham, Senior Partner, Windham & Associates, Cape Tow Ian Cloke, South & East Africa Exploration Manager, Tullow Oil, Cape Town Jicheng Shi, General Manager, BGP East Africa, Nairobi Senior Executive, Anadarko, Houston Phil Heilberg, President & Chief Executive, Jarch Capital, USA James Phillips, Chief Operating Officer, Africa Oil Corp, Addis Ababa Alexander Leslie, Director, Business Intelligence, The Risk Advisory Group, London Galib Virani, Associate Director, Afren plc, London David Ohana, Chairman, Petroleum Institute of East Africa, Nairobi Senior Executive, Petroleum Exploration & Production Department, Kampala Anil Bhandari, Country Manager, ONGC Nile Ganga BV, Khartoum Dan Foley, Regional Exploration Manager, Sub-Saharan Africa,Apache Corporation, Houston Barry Rushworth, CEO & Executive Director, Pancontinental Oil & Gas, Perth Dale Rollins, Chief Operating Officer, Orca Exploration, London Dr Phil Nelson, Executive Director, Petrodel, Dar-Es-Salaam Alec Robinson, President & Chief Executive, Lion Petroleum, London Teklehaimanot Debretsion, Director, Hydrocarbon Division, Ministry of Energy & Mines, Eritrea Dr Canisius Kanagire, Executive Secretary, Lake Victoria Basin Commission, East African Community, Kisumu Robin Vela, Chief Executive Officer, SacOil Holdings, Johannesburg Steve Noske, Managing Director, WHL Energy, Australia Lindsay Elliott, Exploration New Ventures, Beach Energy, Adelaide Xiao Zongwei, Vice President, CNOOC Africa, UK J Laurie Hunter, Chief Executive Officer, Madagascar Oil Ltd Dr Ketsela Tadesse, Head of Petroleum Operations Dept., Ministry of Mines & Energy, Ethiopia Tavares Martinho, Exploration Manager, ENH, Mocambique David Ginger, Director, Subsurface & New Ventures, Cairn India Clare Akamanzi, Chief Operating Officer, Rwanda Development Board Joseph Pili Pili Mawezi, Secretary General of Hydrocarbons, Ministere des Hydrocarbures, DRC Geoffrey Rugazoora, Chief Executive, Mogas Group Kennedy Liyungu, Director, Geological Survey Department, Zambia Dr Meshack Kagya, Senior Principal Geologist, Tanzania Petroleum Development Corporation, Dar-Es-Salaam
The Hague
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sonika@glopac-partners.com
babette@glopac-partners.com
Tanya Beddall
tanya@glopac-partners.com
Official Endorsements
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C100 M90 Y10 M100 Y80 K10 K100
INDUSTRY NEWS
enyas President Mwai Kibaki took over the chairmanship of the East African Community (EAC) Heads of State Summit in November 30, 2011 from Burundis President Pierre Nkurunziza. According to the Communiqu of the 13th EAC Heads of State summit issued in Bujumbura, Burundi, Rwanda took over as rappoteur from Kenya. In his speech after taking over the chairmanship, President Kibaki called upon the United Nations Security Council to take serious steps towards stabilization of Somalia. The insecurity in Somalia is indeed an international problem and we urge the international community to complement the efforts of regional bodies, including IGAD and the African Union, towards bringing peace and security to the country, President Kibaki said. Regionally, the President emphasized that the success of the East African Community is linked to the state of affairs in the entire region. The theme of the 13th EAC Heads of State summit was: Consolidating the Common
Market and Laying the Foundation for a Monetary Union. As he took over the chairmanship, President Kibaki said he looked forward to the expansion of the EAC noting that more countries had shown an interest in joining the community. The President of Kenya noted that the performance of the intra-East African Community trade has grown over the last five years, rising from about 2 billion US Dollars in 2004 to about three and a half billion US Dollars in 2009. A closer look at both the exports and imports of each one of the Partner States reveals similar upward trends over the period. This progress has been achieved in partnership with the private sector, President Kibaki said. Kibaki encouraged business people in East Africa to re-double their efforts in playing their rightful role as the engine of growth in the community.He at the same time, expressed the need to eliminate Non-tariff Barriers that continue to raise the cost of doing business in East Africa adding that EAC should fast-track the establishment of one-stop border posts
at key border points to facilitate trade. On infrastructure, President Kibaki appreciated the work already done in the implementation of the East African Road Network Project but stressed that more remains to be done. During the session, the summit adopted the annual report of the Council of Ministers for the period between November 2010 to November 2011, the report of the Council of Ministers on the proposed attainment of a Single Customs Territory and the report of the Team of Experts on fears, concerns and challenges on the Political Federation which were present by Kenyas East African Community Minister Musa Sirma.
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INDUSTRY NEWS
The Total Foundation donated 500,000 dollars,(approximately 43.5 million shillings) to the African Medical and Research Foundation (AMREF) to be used for urgent measures to fight famine and drought in Kenya, Ethiopia and South Sudan. The cheque was presented to Dr Lennie Bazira Kyomuhangi (right), the Country Director of AMREF Kenya, by Alain Champeaux (left), the Total Group outgoing Senior Vice President, Supply and Marketing for Africa and Middle East, during a cocktail party held by Total Kenya Limited at the Inter-Continental in Nairobi for the business community in Kenya.
Last year, Total Group in France was one of the first companies to respond to the international appeal for aid for the victims of the famine in East Africa. The Total Foundation allocated the 500,000 dollars which was donated to AMREF, the leading medical NGO in Africa. We are glad that already they have started utilizing the funds to help communities in Northern Kenya. Mr. Champeaux said during the function. Total was also on hand to help the victims of the Sinai Fire Tragedy through its donation of medical kit for the treatment of severe burns. Our involvement in this region goes back very many years and underscores The Groups commitment to the communities where we do business, he added.
enya Pipeline Company (KPC) has floated an international tender for a feasibility study on inland bulk liquefied petroleum gas (LPG) filling plants and storage facilities. The study is for review of the LPG market with supply logistics, provision of demand forecast up to 2030, recommending of infrastructure required to meet Kenyan and regional demand options, among others. The governments policy as spelt out in Vision 2030 is to facilitate provision of adequate supply and distribution of LPG at a least-cost basis to enhance consumption among the urban and rural poor. Critical to success of the policy is availability of storage, distribution and
dispensing facilities within close proximity to consumers to guarantee access while maintaining high quality standards. KPCs Managing Director Selest Kilinda said firms interested in the study must submit proposals by March 1, 2012 before 10 a.m. with tender security from a bank of KSh300,000 or equivalent in US dollars. International firms incorporated outside Kenya must partner with local companies in a joint venture agreement arrangement for services. A copy of a joint venture agreement must be attached, he said. The Ministry of Energy in 2004 through World Banks credit for Energy Sector Recovery Project commissioned Petroleum Development Consultants (PDC) to undertake study of LPG demand in East Africa and preliminary design of infrastructure to meet needs of Kenya.
The study recommended development of LPG facilities in Mombasa, Nairobi, Eldoret, Kisuimu, Nakuru and Sagana. The facilities have not been developed to date. It has become necessary to review the information upon which the inland LPG facilities will be developed and determine appropriate project implementation modalities for expeditious realization of the project. KPC is the governments implementing agent in the development of LPG facilities, said Mr Kilinda. He said the successful consultant will review previous designs, assess viability of investment and present a business case and a LPG marketing strategy that would ensure full utilization of the facilities.
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MEMBER PROFILE
The bulk liquids logistics provider has attained market leadership by virtue of a strict safety code.
When Primefuels was established, transportation of Liquefied Petroleum Gas (LPG) in East Africa was a major challenge yet the demand was high. The companys founders led by the Managing Director, Mr. Asif Abdulla, initially mounted LPG tanks on railway flatbeds and then transported it inland from Mombasa. Primefuels started off with contracts from Agip and Total. In 2000, the company won a contract to deliver fuels to Geita Gold mines in the Mwanza region of Tanzania. The contract was a major milestone in the companys history as it opened new market horizons. By then Primefuels did not have their own trucks but were using railway wagons and subcontracting trucks from other companies. They bought six trucks at around this time and the fleet has grown steadily ever since. Today, Primefuels is proud to have one of the best transport organization structures in the East and Central African region. All Primefuels trucks are fitted with GPRS communication gadgets hence they are easily managed and monitored on the road during the entire journey. One of the companys rules is that the drivers are instructed not to drive at night as majority of accidents occur at night.
From (R) Mr. R K Pillai Primefuels Operations Manager (Mombasa), Mrs Jayne Musomba, General Manager and Mr Samuel Odumba HSSE Manager (Mombasa) with the ISO 14001:2004 Environmental Management Systems (EMS) certificate awarded to the company by SGS
rimefuels received ISO 14001:2004 Environmental Management Systems (EMS) certification in December 2011 from SGS, a first among peers in the region as the company turned 15. Founded in 1996, the company has managed its road transport operations in a safe, efficient and sustainable manner, according to Mrs Jayne Musomba, the General Manager (GM), Primefuels, Kenya. Primefuels Kenya Limited endeavors to fulfill its obligations as defined and adapted from its health, safety, security and environment policy commitment, Mrs Musomba says. Consequently, Primefuels initiated the ISO 14001:2004 certification process in mid-2010 and accelerated implementation of the environmental management system in 2011. It demonstrated enterprise-wide understanding of the ISO 14001:2004 standard to SGS - an independent auditing agency, and sound, documented, environmental policies as well as management processes. As a result, SGS Kenya conducted certification audits in the fourth quarter of 2011, culminating in the December 2011 recognition. As concerns about global climate change and sustainable business practices grow, an increasing number of our customers are demanding that our processes and systems are of the highest standards. The ISO 14001:2004 certification is evidence of our commitment to continually improve our performance, the GM adds. Mrs Musomba points out that Primefuels upholds adherence to HSSE standards in road transportation and shoulders associated costs as opposed to focusing on short-term gains. The company is committed to ensuring the highest standards in petroleum transportation by incorporating the best practices in HSSE, Mrs Musomba reiterates. Indeed, Primefuels has a fully-fledged HSSE department headed by Mr Samuel Odumba. The HSSE manager is responsible for managing and enforcing HSSE systems and training staff for purposes of effectively meeting customers needs sustainably. The companys management and staff are thoroughly updated on HSSE issues, which form part of the companys human resource policy.
The company is committed to ensuring the highest standards in petroleum transportation by incorporating the best practices in HSSE
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MEMBER PROFILE
Other rules and regulations as stipulated by Primefuels include, not driving for more than four hours without a 15 minutes rest and strictly following the route mappings. The company has an alcohol and seat belt policy. It also ensures drivers undergo frequent refresher courses. According to the GM, there is need for maximum cooperation and spreading the safety gospel among all the players in the transportation industry. We can only achieve better business practices through working very closely with others and by supporting public and governmental efforts that foster HSSE, Mrs Musomba says. The company has an elaborate welfare scheme for staff and holds blood donation camps as well blood test camps to encourage employees to give back to the community. Primefuels has a policy of investing in employees on a longterm basis. The company believes that employees are able to grow and enhance their professional skills to the maximum in a secure environment. Most staff members have grown with the company and they are the key resource and reason for our progress, says Mrs Musomba. After the initial Kenyan venture got a foothold locally, Primefuels ventured outside into Tanzania and Uganda, then on to Zambia, where its subsidiaries have blazed the trail. The company extends its operations in Eastern Democratic Republic of Congo (DRC), Malawi, among other neighboring countries. To be specific, today Primefuels has presence in: DRC Congo where deliveries are made to destinations along the Eastern DRC frontier in over 4 provinces, Uganda where using a two pronged approach, Primefuels offers multi modal services of both rail and road to deliver product to its customers Primefuels delivers to various customers in South Sudan and has an office in Juba for coordination of activities. In Tanzania, Primefuels Tanzania Limited has over the years proved to be the reliable transporter offering multi-modal services while maintaining High HSSE practices In Zambia, Primefuels has incorporated Primefuels Zambia and offers warehousing and transshipment facilities.
Rwanda and Malawi complete the immediate picture of Primefuels reach in the region with plans of moving further inland in the drawing stage as Africa becomes part of the global village. To be specific, today Primefuels has presence in: DRC Congo where deliveries are made to destinations along the Eastern DRC frontier in over 4 provinces, Uganda where using a two pronged approach, Primefuels offers multi modal services of both rail and road to deliver product to its customers Primefuels delivers to various customers in South Sudan and has an office in Juba for coordination of activities. In Tanzania, Primefuels Tanzania Limited has over the years proved to be the reliable transporter offering multi-modal services while maintaining High HSSE practices In Zambia, Primefuels has incorporated Primefuels Zambia and offers warehousing and transshipment facilities. Rwanda and Malawi complete the immediate picture of Primefuels reach in the region with plans of moving further inland in the drawing stage as Africa becomes part of the global village. The Primefuels management team is confident of the future and has plans to keep growing in the region. According to Mr. Davender Mongia, the Financial Controller, each country in the region has its own requirements and uniqueness. There is no specific country that one can refer to as better or worse in comparison to the other. Each country has its own geographical, social or economic advantage, some are landlocked, and some have rich natural resources - each country is unique on its own, says Mr. Mongia. His message to all petroleum transporters and logistics companies is that, they should all work towards maintaining the best standards in the market and always consider the welfare of both internal and external customers as well as the environment. He is more emphatic about safety and best business practices. Let all players in the petroleum transport business always play fair, adds Mr. Mongia.
Mrs. Jayne N. Musomba, General Manager, Primefuels Kenya Limited receiving an award from the Nation Media Group CEO, Linus Gitahi in last years top 100 small and medium sized companies event.
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INDUSTRY NEWS
he Kenya Bureau of Standards (KEBS) issued eight new standards on LPG cylinders late last year, even as safety issues continued to take centre stage in the country. Title Kenya Standard Gas cylindersFitting of valves to gas cylinders, First Edition. Kenya Standard Gas cylinders Operational procedures for the safe removal of valves from gas cylinders, First Edition. Kenya standard Transportable gas cylinders Inspection and maintenance of cylinder valves, First Edition. Kenya Standard Gas Cylinders Cylinders for compressed and liquefied gases (excluding acetylene) Inspection at time of filling, First Edition. Kenya Standard Gas cylinders Refillable seam less steel gas cylinders Design, construction and testing Part 3: Normalized steel cylinders, First Edition. Kenya Standard Gas cylinders Refillable welded stainless steel cylinders Part 1: Test pressure 6Mpa and below, First Edition. Kenya Standard Gas cylinders Refillable welded stainless steel cylinders Part 2: Test pressure greater than 6Mpa, First Edition. Kenya Standard Gas welding equipment Rubber and plastics hoses and hose assemblies for use with industrial gases up to 450 bar (45Mpa), First Edition.
Up until the inaugural East Africa World Liquefied Petroleum Gas Association Summit which was facilitated by PIEA and hosted by Kenya through the Ministry of Energy, LPG had not received its due attention. Following the outcome of the Summit PIEA, through its Boards approval, has established the LPG Focus Forum (LPG FF) with the aim of receiving adequate attention. It has been appreciated that the importance of issues related to LPG as a modern energy cannot be understated especially with the infrastructural developments that are expected to significantly increase its consumption in the East Africa region. Further LPG malpractices resulting from poor monitoring and limited enforcement capacity on the part of regulatory agencies, limited public awareness on the risks involved while handling LPG and lack of adequate capacity of adequately trained staff in the LPG business segment are areas cut out for the LPG FF to work on and progress is on course. The Forum currently has membership drawn from relevant PIEA Member Companies. In an effort to increase LPG awareness and safety the Energy Regulatory Commission (ERC) and PIEA are due to commence a media campaign this quarter. The PIEA and the WLPGA are, in bid to widen training and education of the sector workforce on appropriate operational, business and safety practices and additionally to continue transfer of knowledge, cooperation and collaboration between public and private sectors in the region and the rest of the world,all ste to run the EA WLPGA-PIEA East Africa LPG training on 21st to 23rd March 2012 at the Intercontinental Hotel in Nairobi . According to the Kurrent Technologies CEO, Eng. James Mwangi, some of the new entrants into the LPG business are complying with the law therefore demonstrating a positive trend. But he proposes a census of all LPG facilities in the country to establish their location and numbers, and a subsequent inspection of each to ascertain their compliance. PIEA has rooted for the ERC to appoint an independent LPG inspection agent to fast track monitoring, compliance and enforcement in the LPG segment and quickly significantly reduce the escalating malpractices which are hampering growth and consumer safety. KEBS should also continue developing technical standards and perhaps lower the cost of accessing the standards to make them widely accessible. Such standards, though they may be borrowed from elsewhere, should be benchmarked against world renowned certification bodies.
KS ISO 25760:2009
KS ISO 22434:2006
KS ISO 9809-3:2010
KS ISO 18172-1:2007
KS ISO 18172-2:2007
KS ISO 14113:2007
The above standards took effect on October 28 2011 following publication of Gazette Notice No. 13754 contained in Kenya Gazette Vol. CXIII No. 106 of the same date. The standards came out in a back drop of fresh concerns amongst industry players on the capacity of enforcement agencies in routing out non-compliant facilities in various parts of Kenya. A recent fire incident in Nyeri involving LPG for instance brings the issue into sharp focus.
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REGULAR PROGRAMMES
Dates
Programme
Venue
5th to 9th Mar 2012 12th to 16th March 2012 19th to 23rd March 2012 23rd to 25th Mar 2012 9th to 11th April 2012 18th to 20th April 2012 23rd to 27th April 2012 30 April to 4 May 2012
th th
5 days 5 days 5 days 3 days 3 days 2 days 5 days 5 days 5 days 5 days 5 days 2 days 5 days 5 days 2 days 3 days
C3 C9 C4 S2 C1 R2 C5 S1 E2 C5 C 12 R1 C1 C2 M2 C 14 C3
Petroleum Depots Operation and Distribution Management Service Station Management LPG Operations Service Station Attendants Course Introduction to the Oil industry Managing Employee Relations in Petroleum Sector Petroleum Stocks Control (Petroleum Stocks Module 1) Driver Certification Seismic Acquisition Field Techniques Petroleum Stocks Control (Petroleum Stocks Module 1) Contractor Safety Management Strategic Customer Service in Petroleum Sector Introduction to the Oil industry Supply, Planning and refining Middle Management Development Programme Executive Introduction to the Oil Industry Petroleum Depots and Operations and Distribution Management Performance Management for Higher Productivity Petroleum Standards, Legal and Regulatory Framework Driver Certification Introduction to the Oil Industry Finance Management skills for non-finance Manager Petroleum Road Transportation Management S2: Service Station Attendants Course
Western Kenya Dar Nairobi Nairobi Mombasa Nairobi Western Kenya Nairobi Nairobi Nairobi Nairobi Nairobi Kampala Mombasa Nairobi Nairobi Nairobi Nairobi Nairobi Western Kenya Nairobi Nairobi Nairobi Western Kenya
7th to 11th May 2012 14th to 18th May 2012 21st to 25th May 2012 28 to 29 May 2012
th th
9th 13th July 2012 19th to 20th July 2012 23rd 27th July 2012 30 Jul to 3 Aug 2012
th rd
2 days
M3 C 10 S1 C1
August
6th 10th August 2012 16th to 17th Aug 2012 20th 24th August 2012 27 Aug to 29 Aug 2012
th th
2 days 3 days
B1 C8 S2
Charges: - Members : Kshs 49,000/= plus VAT, Non Members : Kshs 62,500/= plus VAT. Executive Introduction to The Oil industry (costs) Kshs 50,000/= plus VAT (for all) Environmental Impact Assessment Course for EIA LEAD experts Admission frequency :- Monthly, Duration :- Three weeks, Charges :- 50,000/= Mode of study : Evenings and weekends, Curriculum Approved by NEMA 31 Registered : DIT/TRN/414, MOHEST/PC/129/0
Registration forms:
Available from school of Petroleum Studies, 5th floor or Petroleum Institute of East Africa, 4th Floor, Bruce House. Forms can be downloaded from www.petroleum. co.ke. Email: school@petrooleum.co.ke Tel:2249081 /313046/ 0722 221120 31
CHARITY
Seven-month-old Promise Akiru from Nyeri is presented to his mother by Operation Smile Volunteers after undergoing reconstructive surgery. He was born with a gaping cleft lip. Operation Smile photo Brooke Gordon.
even-month-old Promise Akiru from Kenya is his parents first and only child, and they were devastated when he was born with a gaping cleft lip. When they heard that Operation Smile would be conducting a medical mission in Nyeri, they travelled a great distance to give their son the chance for a new life. Promise is a beautiful child and he immediately captured the hearts of the medical volunteers. After his surgery, when his mother saw her son for the first time, not only did her eyes fill with tears of joy, but the volunteers were deeply impacted by the emotionally powerful moment. Every three minutes, a child like Promise is born with a cleft. In Kenya, more than 2,700 children a year are born with this tragic facial deformity. One in 10 of those children will not live to see their first birthday. It is estimated that that over 20,000 Kenyans are living with and suffering from cleft lips and cleft palates. Those who survive often cant speak or eat properly. Many live in isolation, completely shunned by their communities. With a surgery that takes as little as 45 minutes, these childrens lives can be transformed forever. Almost 30 years ago, Dr. Bill and Kathy Magee refused to look away from these children who desperately needed help. In 1982, their passion and determination led to them founding Operation Smile, a childrens medical charity that works in more than 60 countries. This year, Operation Smile will commemorate its 30th Anniversary of providing free reconstructive surgery and related medical services for children and adults who suffer from facial deformities such as cleft lips and cleft palates, as well as burns. Today, Operation Smile is one of the largest volunteer-based surgical charities in the world. The organization and its co-founders have received numerous prestigious awards, including the first $1 million Conrad N. Hilton Humanitarian Prize which recognizes outstanding contributions made to alleviate human suffering, and in 2007, the Presidents Call to Service Award. Through the 30th Anniversary events, Operation Smile will continue to advocate for improving the health and lives of children in Kenya and worldwide, while also raising awareness of this potentially life-threatening and socially debilitating issue. In the last three decades, Operation Smile has mobilized more than 5,000 volunteer medical professionals from over 80 countries. Through the support of generous donors
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STATISTICS
Month/Year
January February March April May June July August September October November December
2007
54.85 58.75 62.10 67.60 68.40 69.70 73.70 71.75 78.55 76.29 91.75 90.60
2008
92.25 95.10 102.20 109.35 125.75 134.00 137.35 117.50 98.05 69.25 51.40 42.10
2009
45.85 44.95 47.55 52.15 60.15 71.65 66.20 72.75 69.10 74.30 78.60 76.10
2010
77.50 74.20 78.30 84.80 77.85 74.80 73.00 74.60 75.90 81.50 85.65 91.85
2011
95.55 103.60 112.55 120.70 113.60 112.15 113.95 109.05 110.90 108.95 114.35 111.80
The quantity of crude oil imported was all from the United Arab Emirates (UAE). A total of 22 crude oil vessels were handled at Kipevu Oil Terminal. The largest quantity of crude oil delivered in one parcel was 83,561metric tones of Murban crude by MT Genie in July 2011 on account of Gulf Energy Limited.
YEAR 2007 2,999 808,363 438,545 73,241 329,853 1,370,126 47,007 674,809 74,017 16,677 33,074 3,130 3,871,841 2008 3,380 705,705 417,794 61,033 285,003 1,429,838 30,344 600,999 78,030 17,733 32,675 2,431 3,664,965 2009 2,007 740,211 542,856 55,158 374,945 1,675,577 23,897 590,944 59,773 12,405 26,514 1,429 4,105,715 2010 2,672 747,841 633,397 56,953 323,441 1,583,718 26,570 570,232 63,779 7,761 30,970 1,069 4,048,404 2011 2,812 889,251 740,644 40,388 340,603 1,769,029 32,291 637,417 62,499 10,521 43,292 655 4,569,402
Source : Pipecor
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STATISTICS
Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel
PRODUCT
108.07 112.54 80.95 102.05 108.70 112.54 84.31 104.65 115.79 118.97 87.93 107.72 120.85 121.00 92.05 111.04 117.22 113.86 87.14 107.69 115.01 113.82 85.49 104.93 113.44 113.84 86.16 105.73
Maximum pump prices (15th February 2012 to 14th March 2012) MOMBASA NAIROBI NAKURU ELDORET
111.32 115.40 83.74 105.29 111.95 115.40 87.11 107.90 119.06 121.85 90.74 110.98 124.13 123.88 94.87 114.30 120.50 116.73 89.95 110.94 117.75 116.68 88.29 108.17 117.22 116.71 88.96 108.97 111.92 115.88 84.51 106.09 112.55 115.88 87.86 108.70 119.62 122.29 91.48 111.77 124.66 124.31 95.60 115.08 121.05 117.20 90.69 111.73 118.12 117.15 89.04 108.97 117.99 117.18 89.71 109.77 113.03 116.91 85.53 107.20 113.66 116.91 88.89 109.81 120.73 123.32 92.51 112.88 125.77 125.34 96.63 116.19 122.16 118.22 91.72 112.84 119.03 118.18 90.07 110.08 119.30 118.20 90.73 110.88
PRODUCT
Maximum pump prices (15th January 2012 to 14th February 2012) MOMBASA NAIROBI NAKURU ELDORET
113.09 116.90 85.53 107.26 113.72 116.90 88.89 109.87 120.79 123.31 92.50 112.94 125.83 125.34 96.62 116.25 122.22 118.22 91.71 112.90 119.09 118.17 90.06 110.14 119.36 118.20 90.73 110.94
KISUMU
KISUMU
PRODUCT
Maximum pump prices (15th December 2011 to 14th January 2012) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
PRODUCT
Maximum pump prices (15th November to 14th December 2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
PRODUCT
Maximum pump prices (15th October to 14th November 2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
PRODUCT
Maximum pump prices (15th September to 14th October2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
PRODUCT
Maximum pump prices (15th August to 14th September 2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
34
STATISTICS
Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel Super Petrol Regular Petrol Kerosene Automotive Diesel
PRODUCT
112.12 112.43 83.37 102.88 112.07 109.31 82.91 103.06 112.09 108.23 89.40 104.77 107.92 104.92 85.53 102.20 107.92 104.92 87.70 104.28 99.28 97.74 80.86 91.39 94.93 94.97 76.42 88.59 92.53 94.03 74.41 85.59 91.08 91.44 72.88 84.51
Maximum pump prices (15th July to 14th August 2011) MOMBASA NAIROBI NAKURU ELDORET
115.39 115.29 86.16 106.12 114.93 112.17 85.71 106.30 115.35 111.48 92.61 108.02 111.17 108.16 88.73 105.44 111.17 108.16 90.91 107.52 102.44 100.90 83.97 94.53 98.08 98.11 79.52 91.72 95.67 97.17 77.51 88.71 94.03 94.39 75.83 87.45 116.47 116.27 87.15 107.20 115.91 113.15 86.69 107.38 116.43 112.56 93.69 109.10 112.25 109.25 89.81 106.53 112.25 109.25 91.99 108.60 103.50 101.96 85.03 95.59 99.14 99.17 80.58 92.78 96.73 98.23 78.57 89.77 95.10 95.45 76.89 88.52 117.58 117.30 88.17 108.31 116.94 114.17 87.72 108.49 117.54 113.67 94.80 110.21 113.36 110.36 90.92 107.64 113.36 110.36 93.10 109.71 104.58 103.04 86.12 96.67 100.22 100.26 81.67 93.87 97.82 99.32 79.65 90.86 96.19 96.55 77.98 89.61
PRODUCT
Maximum pump prices (15th June to 14th July 2011) MOMBASA NAIROBI NAKURU ELDORET
117.64 117.29 88.17 108.37 116.93 114.17 87.71 108.55 117.60 113.73 94.86 110.27 113.42 110.42 90.98 107.70 113.42 110.42 93.16 109.77 104.64 103.10 86.17 96.73 100.28 100.32 81.73 93.92 97.87 99.37 79.71 90.91 96.25 96.60 78.04 89.66
KISUMU
KISUMU
PRODUCT
Maximum pump prices (15th May to 14th June 2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
PRODUCT
Maximum pump prices (Revised: 4th May to 14th May 2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
PRODUCT
Maximum pump prices (15th April to 3rd May 2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
PRODUCT
Maximum pump prices (15th March to 14th April 2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
PRODUCT
Maximum pump prices (15th February to 14th March 2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
PRODUCT
Maximum pump prices (15th January to 14th February 2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
PRODUCT
Maximum pump prices (15th December to 14th January 2011) MOMBASA NAIROBI NAKURU ELDORET
KISUMU
Site sampling and testing by SGS of products for kerosene adulteration and export dumping indicates that the mal-practices have been subdued by the stringent enforcement in place. Some isolated cases have been reported as indicated in the tables below.
Total 41 87 28 27 43 94 320
Total 41 86 28 27 46 94 322
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STATISTICS
RC-15
RC-12
RC-5
RC-4
Legend Location of Response Centre Location of Response Centre Response Centre name RC Response Centre name Response Location Name Company in-charge Center No. of the centre 1. RC - 1 Mombasa KPRL 2. RC - 2 Voi Total (K) Ltd 3. RC - 3 Mtito Andei Libya Oil 4. RC - 4 Sultan Hamud Kenya Shell 5. RC - 5 Nairobi National Oil 6. RC - 6 Kinungi KenolKobil 7. RC - 7 Naivasha Engen 8. RC - 8 Nakuru Gulf energy 9. RC - 9 Molo Total (K) Ltd 10. RC - 10 Kericho Libya Oil 11. RC - 11 Kisumu Total (K) Oil 12. RC - 12 Busia Kenya Shell 13. RC - 13 Eldoret KPC 14. RC - 14 Webuye KenolKobil 15. RC - 15 Malaba Hashi Energy By Joseph M. Panyako (EO - PIEA) Courtesy of PSEC
RC-3
RC-2
RC-1
PETROLEUM TAXES
Motor Spirit (Gasoline) Regular Motor Spirit (Gasoline) Premium Aviation Spirit Spirit Type Jet Fuel Special Boiling Point & White Spirit Other Light Oils and Preparations Partly refined (including topped crudes) Kerosene type Jet Fuel Illuminating Kerosene (IK) Other Medium oils and preparations GasOil (automotive,light,amber for high speed engines). Diesel Oil (ind heavy,black for low speed marine and stationery engines). Other Gas Oils Residual Fuel oils 125 cst. Residual Fuel oils 180 cst. Residual Fuel oils 280 cst. Other residual fuels Lubricating oils Lubricating greases Batching oils Butanes (Petroleum gases) Petroleum Bitumen Bituminous or oil shale and tar sands Bituminous mixtures
Import Duty
- - - - - - - - - - - - - - - - 25% 25% 25% - 10% 10% 10%
Excise Duty
19.505 19.895 19.895 19.895 8.500 8.500 1.450 5.755 5.300 8.244 3.700 6.300 0.600 0.600 0.600 0.600 - - - - - - -
VAT
- - - - - - - - - - - - - 16% 16% 16% 16% 16% 16% 16% - 16% 16% 16%
Remission Kshs/Litre
0.45 0.45 0.45 0.45 0.30 0.30 0.30 0.45 0.45 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30
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