Kenya Pipeline begins search for KPRL advisor
The Kenya Pipeline Company (KPC) is seeking a transaction advisor to evaluate renovation costs for the oil refinery.
The state corporation took management of the Kenya Petroleum Refinery Limited (KPRL) after the government paid Sh500 million to acquire a 50 percent stake previously owned by India’s Essar Energy.
KPC plans to convert the refinery into an oil storage facility as the government gears for commercial oil production in 2017.
“We are currently procuring a Transaction Advisor to carry out due diligence on the assets and liabilities of KPRL,” KPC said in a statement.
KPRL has remained inactive since 2013, after plans for a Sh121 billion upgrade of the facilities were abandoned with the government arguing it was not economically viable.
KPRL has 45 tanks for various products with a total networking capacity of over 484 million liters. 17 of the tanks are meant for refined products which the corporation says can be heated and converted into crude oil storage tanks.
Essar Energy purchased the 50 percent stake in KPRL in 2009 with plans to increase the refinery’s crude handling capacity to 79,000 barrels per day by 2018.
“However, some of the refined petroleum products tanks are already in use and are connected to KPC hence may be available for immediate use once KPC takes possession of KPRL,” the corporation said
The government last week announced two weeks ago it plans to start exporting 2,000 barrels of crude oil in July 2017. The oil will be evacuated from the Lokichar basin in Turkana via Road and Rail to Mombasa as the government works on plans for an oil pipeline set to be complete in 2022.
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