KPRL crude sold for Sh1.25bn
Over 340,000 barrels of crude oil left after Kenya Petroleum Refineries Limited (KPRL) shut down in 2013 has been sold.
The sale now gives storage room for oil explored in Turkana by British oil explorer Tullow.
For close to five years, tanks at the KPRL facility held more than 300,000 barrels of crude oil after the refinery seized operations.
Two months ago however, under the Supplycor Company, the consignment was sold generating some Sh1.25 billion sold through a contract executed by Vivo Energy on behalf of the oil marketing companies.
The sale off, the government said, was slowed down by wrangles between India based Essar who co-owned the refinery with it.
The revelation of the sale was made at a meeting held between President Uhuru Kenyatta and energy ministry officials.
The sale of the crude oil now paves the way for storage of the projected 200,000 barrels of crude oil from Tullow Oil in Turkana which is planned for quarterly export.
Tullow has indicated it will produce 2,000 barrels per day over the next two years to be transported by road to the KPRL facility in Changamwe, Mombasa County.
Tullow has extracted 70,000 barrels but lack of storage in Turkana making it impossible to pump more.
The collapse of the Kainuk bridge in Turkana becomes the latest challenge for Tullow and the government to evacuate oil.
The government had initially planned to begin crude oil exports in June but was forced to halt the process amid rising political tension.
Tullow and the government announced last month that oil exports under the early oil pilot scheme would commence in the first quarter of 2018.
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