in this issue - petroleum.co.ke · petroleum prices increase in kenya upon introduction of value...
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In this issue
BOC Gases
Engen Kenya Limited
Board of Directors
Chairman - Total PLC
Vice Chairman- Libya Oil Kenya Limited
Galana Oil Kenya Limited
Gulf Energy Limited
Hass Petroleum Limited
KenolKobil Limited
Kenya Petroleum Refineries Limited
Kenya Pipeline Company
Hashi Energy Limited
Vivo Energy Limited
National Oil Corporation of Kenya
Africa Gas & Oil Co. Limited
Petrocity Energy (K) Limited
Gapco Kenya Limited
VTTI (K) LTD
Tosha Petroleum
East AFrican Gasoil Limited
Stabex International
BOC Gases
Kurrent Technologies Limited
Engen Kenya Limited
SGS (K) LTD
Robert Paterson
Varun Sharma
Editorial, Production & Advertising
Alison and Davis Group Ltd
6th Floor, Town House,
Kaunda Street
Tel - 020 2320083, 0721 845 944
Email: [email protected]
Editorial Board
Wanjiku Manyara, Kimemia Mugo,
Kevin Adundo, Tony Ndolo
Contributors
Wanjiku Manyara, Kimemia Mugo,
Kevin Adundo, Zoher Pirbhai, Prakriti
Raghavan, Daniel Muasya,Tony Ndolo,
Dorice Itebaluk.and Richard Nandi.
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: 254-20-2249081,3313046, 3313047
Mobile: 0722 221120 - Fax: 254-203-313048
Email: [email protected] - Website: www.petroleum.co.ke
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Market data
Upstream: Government working
closely with communities 10
13TOTAL Motor Show 2018
19Local content evolution
21Fight against illicit trade
28Pictorial
30Regional news
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Insight From the
Since the second quarter this year, crude oil prices have been swinging between US$70 to US$80 per barrel.
According to the International Energy Agency (IEA), the trend is attributable to the current production decline in Venezuela and reduction in Iranian exports which are expected to decline further when US sanctions against Iran’s oil exports are implemented in the fourth quarter of the year.
The IEA projects that markets could tighten and oil prices could rise without offsetting increased production from elsewhere if Venezuelan and Iranian exports continue to fall.
Generally, analysts foresee disruption of the aforementioned price range given the escalated deteriorating state of Venezuela, recent attacks on NOC headquarters in Libya and the decisions that countries will make with respect to US sanctions on Iran. All these factors may inform production decisions of oil producers.
The global crude oil prices scenario has trickled down to the East Africa region. In addition, the Finance Act 2018 has seen petroleum prices increase in Kenya upon introduction of Value Added Tax (VAT) and a further increase for Kerosene due to the enforcement of the anti-adulteration levy.
The Industry through PIEA had made numerous evidence-based proposals to the Government on how to effectively tame adulteration which informed the introduction of the aforementioned levy on Kerosene. This solution will seal the previous tax loophole and eliminate illicit trade in fuel along with the attendant damage on machinery and the environment. It will also lead to shutting down of illegal fuel dens that have been a big risk to security of supply.
Focus now shifts to fast tracking the implementation of the Liquefied Petroleum Gas (LPG) Country’s road map and action plan that was developed by stakeholders at the May 2016 National LPG stakeholders workshop. The two documents were guided by the National Energy and Petroleum Policy directives and strategies that aim to make LPG the primary cooking fuel for Kenyan households by 2030.
The policy maker needs to now sign off the new Legal Notice 121 for subsequent gazettement. The statute aims to achieve the desired legal and regulatory reforms in the LPG segment which needs to be implemented to unlock access to LPG in every corner of Kenya to replace kerosene, firewood and charcoal.
There is no doubt that the LPG segment is a key item in the Country’s development agenda as it contributes significantly to manufacturing, healthcare and food security. Deforestation adversely impacts on climate change which impacts on our agricultural production and promotes conservation of the Country’s forests.
In this issue, we have focused on the evolution of the oil and gas landscape in the last two decades in terms of players, services and the workforce.
We take this opportunity to bid farewell to PIEA Chairman and Total PLC Managing Director Anne Solange-Renouard who is taking up another role in another Country.
Kwaheri na Asante Sana!
Wanjiku Manyara
General Manager
General Manager
The policy maker needs to now sign off the new
Legal Notice 121 for subsequent gazettement.
The statute aims to achieve the desired legal and regulatory reforms in the LPG
segment which needs to be implemented to
unlock access to LPG in every corner of Kenya to replace kerosene,
firewood and charcoal.
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United Arab Emirates (UAE)-based Tristar Group inaugurated a CSR project worth an estimated KES11 Million at Kiserian Primary School in Kajiado County.
Tristar Kenya’s Nairobi team oversaw the construction of two new sanitary facilities for both boys and girls, with modern cisterns and flowing water, sanitary bins and hand wash dispensers. The school’s assembly area was also renovated to make it a good place for the pupils to assemble and play especially during the rainy season. The public primary school for boys and girls has a population of more than 2,000 students and almost 50 teachers. It is located in Kiserian, Kajiado North Constituency and Ngong Division. Tristar Group CEO Eugene Mayne, was present at the event alongside the management of Africa Fuels and a representative of the Group’s other business lines such as the Road Transport and Turnkey Fuel Supply divisions. Mr Mayne told guest who included Mr Joseph Wafula, representative of the PS, Ministry of Petroleum and Mining that giving back to the community is embedded in the company’s corporate fabric. “This habit was born with the establishment of our business, including the vision to conduct our business responsibly and with integrity. We are currently dedicated to the sponsoring of the education and accommodation of two orphans who are now studying at Maseno Boys High School and Ramba Boys High School. This Kiserian project is our second CSR project in Kenya,” explained Mr. Mayne who flew in from the Group’s head office in Dubai, UAE for the occasion. In his speech, PS Andrew Kamau commended the efforts made by Tristar to make a positive impact in society. He emphasized that business takes place in the society and that business is not all about profits and bottom lines but also about touching lives in a positive way.
He noted that the Jubilee government is in the process of implementing its Big Four Agenda where the energy and the education sectors have bigger roles to play in achieving the desired outcomes. He said that there cannot be industrialization without the requisite energy and manpower to run the industries.
“Manpower comes from schools, and by supporting school activities like the Tristar CSR, we stand to make huge leaps and bounds in our agenda,” he said. Tristar is a fully integrated Liquid Logistics Solutions provider catering to the needs of the petroleum and chemical industries. The company is headquartered
Tristar Group: Flying the CSR flag very high
in the UAE and operating in 18 countries with more than 1,800 employees. Tristar’s core expertise lies in handling hydrocarbons, lubricants, chemicals and liquid gases with dedicated facilities to manage road transport, warehousing, fuel farms, turnkey fuel supply operations, plane fuel services, ship owning and chartering for clean petroleum products.
The Group is also supporting education in South Sudan. In 2009, it funded the construction of a primary school building with three classrooms outside the capital, Juba. In 2012, the school was upgraded to secondary level with the construction of four additional classrooms. In 2013, Tristar donated a block of three classrooms to the Gabat Primary School in Juba and a Computer Lab in 2018, making it the first school in South Sudan to introduce computer classes for young students.
“This habit was born with the establishment of our business, including the vision to conduct our business responsibly and with integrity.
Tristar Group CEO, Eugene Mayne (in spectacles) accompanied by Kiserian Primary
School teachers inspects one of the ablution blocks built by the Group for the
School. Tristar Group renovated the school’s assembly grounds to make them
playable and passable during the rainy season and built three modern ablution
blocks. Below; The School’s pupils in class during the projects unveiling ceremony
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The Energy Regulatory Commission (ERC) Director General, Mr Pavel Oimeke, has called on the media to act as a catalyst for citizen participation in the energy sector through informative reporting.
Mr Oimeke made the call during a two day media-training workshop hosted by ERC in Meru County on 9th and 10thOctober 2018. The workshop’s objective was to equip journalists with skills to authoritatively and responsibly report on energy sector issues.
Mr Oimeke noted that media coverage on sector menaces such as fuel adulteration has seen such cases plummet due to increased citizen involvement in reporting offenders. “In the recent past, the Commission has carried out crackdowns against unlicensed and illegal petroleum operators engaging in malpractices such as fuel adulteration. Media coverage of these crackdowns has contributed to increased public awareness and public participation in reporting suspects. The combined efforts have led to a reduction in the menace,” he noted.
Further, the Director General asked the media to create awareness on ERC’s regulatory role in the energy sector. “The media should help consumers know what to expect of service providers. For example when hiring an electrician, consumers should ask to see their license to check if the person they are hiring is fit to undertake the particular work they want them to do,” Mr Oimeke added.
The media training workshop drew participation of journalists from Meru, Tharaka Nithi and Isiolo counties. Topics covered during the training include the role of ERC in electrical regulation, economic regulation of the energy sector, enforcement and accurate, impactful and responsible reporting in the energy sector.
Rosemary Gatiria, a Media Max correspondent based in Tharaka Nithi County, challenged her counterparts to create awareness on key issues in the energy sector in order to empower “Mwananchi” to participate in developing the sector. “We are the light of the society; we need to influence positive change in the development of our communities and our county,” she said.
The Commission has in the recent past held similar media engagement workshops in Nairobi, Nakuru and Uasin Gishu counties.
ERC urges media to enhance informative
reporting
The Kenya Pipeline Company has put up four new storage tanks in Nairobi to enhance security of oil supply for Kenya and the region.
The KES5.3 billion project was undertaken by Prashanth Projects Limited and is set to change the oil supply chain landscape significantly and raise KPC’s total storage capacity up to 745 million litres from the current 612.3 million litres. It is also expected to enhance operational flexibility and increase tank turnaround for Kipevu Oil Storage Facility in Mombasa.
“This development provides sufficient capacity for receipt of higher volumes of products expected from Line 5. It also doubles Nairobi’s storage capacity from the current 100 million litres to 233 million litres,” KPC Managing Director Mr Joe Sang says.
The tanks are done to international standards complete with world class automated firefighting system installations. Each of the four tanks has a holding capacity of 33.4 million litres; the tanks will carry diesel and super petrol.
Mr. Sang explains that the project will reduce costs and improve business value along the oil industry supply chain. “This project will definitely create more ullage (storage space) in Kipevu, Mombasa and cause reduction of demurrage charges. This will cut costs significantly along the supply chain giving clients more value for their money,” the KPC MD notes.
KPC Raises Storage Capacity
Mr. Pavel Oimeke, Director General ERC
This development provides sufficient capacity for receipt
of higher volumes of products expected from Line 5. It also doubles Nairobi’s
storage capacity from the current 100 million
litres to 233 million litres
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Since the beginning of the 21st Century, economic globalization has become an inevitable trend in the world. With the positive
attitude of openness, mutual benefit and common development, the African continent, an ancient and mysterious oasis, has once attracted countries around the globe. Since inception, Beijing SANKI Petroleum Technology Co. Ltd has established an indissoluble bond with the African continent.
Beijing SANKI is a subsidiary of SANKI Industrial Group and specializes in the R&D of fuel dispensers, vehicle charging piles, CNG/LNG dispensers, environmental friendly double wall SF tanks, vapor recovery system and other automation equipment for fuel stations. The company has a registered capital of ¥120 Million and over 1,000 employees.
SANKI Industrial Group is a preferred supplier of Chinese national petroleum corporations, such as Sinopec, PetroChina, CNOOC and SinoChem and has been recognized as an excellent supplier for many years. Beijing SANKI is not only a participant in the digitization project of national petroleum corporations, but also a guide and contractor of the informatization project of most local refineries and private petroleum companies. In 2017, the company’s sales amounted to nearly ¥1 billion. In 2018, Beijing SANKI won the first place in the tender of SINOPEC frame agreement (3rd phase) procurement.
Since its establishment in 2005, Beijing SANKI has pursued the following business philosophy “deliver good product and service, grow the people and the business together, create value and share the benefit”. Beijing SANKI has always been acting locally and thinking globally to seek common development opportunity with excellent partners for a
global sales and service network.In response to the national call of “One Belt and One Road”, Beijing SANKI extended the management experience of China’s refined oil industry to developing countries, in the global bidding organized by the National Petroleum Ministry of Sudan. SANKI Group stood out from many excellent global enterprises and exclusively undertook the fuel station and oil depot digitization project for Sudan national oil companies. At the same time, SANKI group was working hard in product design and development, and had successively obtained OIML international measurement certification, ATEX and IEC international explosion-proof certification, and product certifications of Russia, Australia, South Korea and many other countries. SANKI is the only enterprise among Chinese fuel dispenser manufacturers entering developed countries’ markets.
In May 2018, SANKI Industrial Group attended the leading European fuel station and fuel station equipment sector show in Europe; the UNITI EXPO in Stuttgart, Germany. SANKI Industrial Group and its seven subsidiaries displayed the latest products in the field of filling station equipment, ranging from oil dispensing equipment, natural gas filling equipment, underground storage tanks, fuel station management systems, charging piles and so on. With its rich product line and excellent R&D capability, SANKI Industrial Group attracted wide attention from both domestic and foreign customers and industry colleagues at the exhibition.
Subsequently, in July 2018, SANKI Industrial Group had once more SANKI’s core management team participated in the East Africa oil summit held in Nairobi, Kenya. Mr. Shan, General Manager of the SANKI Group’s International Operations Center, was invited to give a
warm speech at the opening ceremony of the exhibition to discuss the future development of oil and gas industry in East Africa with professionals from all over the world. The exhibition was jointly organized by the East African Petroleum Industry Association and Ministry of Energy and Petroleum Industry of Kenya. It attracted the attention of Kenya, Uganda, Rwanda, Tanzania, Zambia and Zimbabwe.
So far, Beijing SANKI has built up contacts with more than 60 countries and sold its product to more than 40 countries and regions. Beijing SANKI has established factories or overseas offices in Kenya, Nigeria, Russia and Australia, aiming to provide more high-quality sales and services with convenience for more global customers.
In order to meet the increasing needs of domestic and foreign customers, SANKI Industrial Group has built up five modern production and manufacturing bases in Beijing Economic and Technological Development Zone, Zhengzhou High-tech Development Zone, Hebei Gu’an Industrial Zone, Tianjin Binhai New Area and Henan Shangqiu Development Zone, covering an area of nearly 80,000 m2 with annual production capacity of more than 60,000 fuel dispensers, LNG/CNG dispensers, vehicle charging piles and other products.
Among them, three factories are for fuel dispensing equipment production, and the new factories in Tianjin and Zhengzhou have further enhanced the production capacity of fuel dispensing equipment. We believe that Beijing SANKI will become the world’s leading fuel station equipment manufacturer. With more partners around the world, we will create a win-win situation for global customers by providing more quality and perfectly customized products and services.
SANKI Paying
Especially AfricaMore Attention Overseas,
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S The Government is working closely with Oil and Gas companies to mitigate challenges and conflicts arising from local communities
and oil exploration/drilling firms.
While speaking during the unveiling of 2nd Quarter 2018 industry report in Nairobi, Cabinet Secretary Ministry of Petroleum and Mining Mr. John Munyes said the Government has undertaken a raft of measures to ensure a smooth flow of activities in exploration, drilling and transportation of crude oil to Mombasa.
“As the arbiter, we are in close collaboration with Oil & Gas players to foster and strengthen good relations with the communities in the oil exploration fields. As you are aware, the challenges we had recently have been overcome and the trucks ferrying crude oil have delivered to the port of Mombasa,” the CS said in a speech read on his behalf by Chief Administrative Secretary, John Musonik.
The CS urged corporate institutions to structure and enhance their corporate
Upstream: Government working closely with communities
social responsibility programs to meet the challenges of local communities. The Government, he explained, is committed to ensuring they play their role in mitigating conflicts and enhancing social cohesion thereby ensuring a smooth exploration, drilling and transportation exercise of crude oil.
“We have also reviewed the petroleum policy, legal, regulatory and contractual frameworks for oil and gas. This is aimed at encouraging oil and gas investors in our country, managing better our petroleum resources for the betterment of our people and fostering co–operation between all our stake holders in the oil and gas sector,” Mr Munyes further explained about the government’s initiatives and incentives put in place to attract oil and gas investors scouting for business opportunities in the country.
Recently, there was a major standoff after communities in oil exploration/drilling fields in Turkana County barricaded roads stopping trucks carrying crude oil to Mombasa. The Government and stakeholders intervened and resolved the conflict which had lasted a couple of weeks delaying transportation of crude in the pilot Early Oil scheme.
The Government has put in place measures and a strategic plan to maintain an enabling working environment for the oil and gas companies. The measures ranging from conflict resolution and adherence to rules are meant to encourage the nascent sector.
In the downstream segment, Munyes noted that the Government’s partnership with NOCK initiated an LPG uptake Promotion which aims at increasing LPG usage penetration in the country. The ongoing campaign seeks to replace kerosene usage as a cooking and lighting source of energy. “The oil industry has for a long time decried the challenge posed by kerosene in adulterating petrol/gasoline. “Increased uptake of LPG will not only go a long way in fighting the vice but also save on our car engines while also protecting the environment by reducing the importation and kerosene use in
our country,” Mr. Munyes observed.
He praised the infrastructural developments in the oil industry especially the construction of the new pipeline from Mombasa to Kisumu.
Andrew Kamau, Principal Secretary, State Department
of Petroleum, John Musonik, the Chief Administrative
Secretary, Ministry of Petroleum and Mining, Ms
Anne-Solange Renouard, Petroleum Institute of East
Africa (PIEA) Chair, Stanbic Bank Kenya’s Head of Oil
and Gas, Renato D’souza and Dele Kuti, Standard
Bank Global Sector Head Oil and Gas display the 2nd
Quarter Petroleum Insight after its unveiling at the Hotel
Intercontinental, Nairobi on May 16, 2018.
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Regulatory Changes Driving
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Ministry of Petroleum and Mining through National Oil Corporation of Kenya (National Oil) has received consultancy support from the World Bank under the Kenya Petroleum Technical Assistance Project
(KEPTAP) to develop a comprehensive nationwide LPG distribution plan for the roll out of Mwananchi Gas.
According to National Oil’s CEO, Ms MaryJane Mwangi, the objectives of this consultancy are to support government’s objective of enhancing LPG penetration in the country by designing a comprehensive distribution model for Mwananchi Gas. The Mwananchi Gas project is targeted at household level and therefore, mapping beneficiaries across the country is absolutely important as well as determining the distribution requirements for the national project.
Specifically, the consultancy assignment will help in the following:i. Mapping out of beneficiaries and the registration/eligibility
plan for identified beneficiariesii. Execution plan for rolling out distribution of discounted
cylindersiii. Establishing the resourcing (personnel and infrastructure
requirements) for successful executioniv. Monitoring and evaluation mechanisms and tools to
continuously gauge the success and impact of the project
Ms Mwangi notes that the consultancy is also geared towards supporting the industry with the much needed current information for market projections. This will be achieved through the following: i. A comprehensive LPG market assessment and demand
projection building up on the 2013 GLPGP-Dalberg Kenya LPG Market Assessment Report.
ii. Developing a national ‘heat map’ to define areas of greatest opportunity for LPG growth
iii. Determining national LPG infrastructural requirements and locations to support the demand projections
The consultancy kicked off on 3rd July 2018 and is expected to take three months. National Oil will be collaborating closely with key stakeholders including oil marketers through PIEA, ERC, KPC among others to provide input for the consultancy and also as part of the stakeholder validation process. The final report will also be shared with all key stakeholders.
National Oil to spearhead LPG
distribution plan
Elizabeth Rogo, the Founder and CEO of Tsavo Oilfield Services was recently honored as a global leader in the 2018 Grit Awards in the United States.
The Awards shine a spotlight on talent, careers and culture in the energy industry. The finalists were nominated for recognition in four different categories: entrepreneurs, individuals, teams and male champions. The 2018 Awards were the 2nd Edition honoring 38 global energy leaders and two corporate winners at a celebration in Houston and online. Geeta Thakorlal, president of INTECSEA delivered the industry keynote and Crystal Washington, a workforce futurist spoke about the future of work in energy harnessing the power of digital. The GRIT Awards, sponsored by NES Global Talent and Gapingvoid, were created to recognize women leaders in energy, and the men who advocate for their progress. Nearly 150 nominations poured in from North America, the United Kingdom, Europe, the Middle East, Africa and Australia. “We believe it’s important to recognize those who embrace growth and innovation as the industry undergoes a massive transformation. It is time the energy industry and our people socialize the great work we do in service for modern society,” said Katie Mehnert, founder and CEO of Experience Energy, a division of Pink Petro. Winners were selected through a blind application review by four external judges. The judges included Tracey Bentley, Executive Director, Colorado Petroleum Council, Jay Copan, Senior Vice President at the American Gas Association, Paula Glover, President and CEO, American Association of Blacks in Energy and Melody Meyer, Non-Executive Director at British Petroleum, AbbVie, and National Oilwell Varco.“The industry is working to build the workforce of tomorrow. Part of that transformation means pulling together the brightest minds and recognizing those who are changing the industry from within. The GRIT Awards accomplishes all those things,” said Vicki Codd, marketing director for NES Global Talent. “And we were thrilled to be involved.” The finalists were nominated for recognition in four different categories: entrepreneurs, individuals, teams and male champions and announced on October 3rd.
Kenya’s Elizabeth Rogo shines at Global Forum
Elizabeth Rogo,
Founder and CEO of Tsavo Oilfield Services
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The TOTAL Motor Show is the biggest motor show event in East and Central Africa. The event brings together all major automotive dealers (from construction, agricultural, mining, trucks, mass transport and passenger cars
segments), auto accessory dealers, ancillary service providers and customers under one roof to show case, demonstrate sample the latest offerings in the automotive market.
TOTAL Motor Show 2018
Ms. Anne-Solange Renouard (second
right), Total Kenya MD explains to
President Uhuru Kenyatta about the
new TOTAL Gas anti-counterfeit
solution during the 2018 TOTAL
Motorshow. Looking on is Adan
Mohamed, CS Ministry of Industry,
Trade & Cooperatives.
The TOTAL Motor Show is a bi-annual event that was started in 1994 by the Kenya Motor Industry Association with TOTAL as the title sponsor. The traditional venue for the show is the Kenyatta International Conference Centre. This year, 2018, the TOTAL Motor Show was held on 29th June-1st July 2018, the next edition will be in 2020.
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Energy solutions services provider, Dalbit has secured two major petroleum products supply contracts with the World Food Programme (WFP) in Gulu, Northern Uganda and Goma, in the Eastern part of the Democratic Republic of Congo (DRC).
Valued at approximately US$ 6.8 million and US$1.1 million, respectively, the two tenders secured following a competitive bidding processes will see Dalbit International South Sudan supply Jet fuel to the WFP bases in Gulu and Goma.
In Gulu, the firm has additionally completed the construction of a brand new operating depot with a capacity to hold more than 720,000 litres of Jet A1 products. The firm is additionally building and will operate a depot to world-class standards in Goma to facilitate the smooth execution of the tender. The operations will include a compact refuelling bowser configured to serve various types of aircraft.
The WFP is the world’s largest humanitarian agency fighting hunger worldwide, delivering food assistance in emergencies and working with communities to improve nutrition and build resilience. Each year, WFP assists some 80 million people in around 80 countries.
At the Dalbit Goma depot, engineering works are at an advanced stage to complete the fabrication of two petroleum products holding tanks. Each of them, with a capacity of 1 million litres, will be connected to ancillary infrastructure including a purpose-built fuelling bay with a further two storage tanks for Jet A1 and Gasoil fuels.
The company operates four depots in Juba, Rumbek, Wau and Bor with a storage capacity of over 6 million litres for Gasoil and Jet-A14.“We are excited that Dalbit has secured the contract to supply WFP in Gulu and Goma and this works well with our commitment to fuelling regional growth across the social and economic development fronts,” said Country Business Manager John Paul Ogondi. He also added “In such remote areas, Dalbit is deploying tailor-made solutions including customised product delivery options to enable WFP to meet its humanitarian mandate efficiently and cost effectively.”
In a news communiqué issued earlier this year, the WFP announced that it had scaled up its operations in the Democratic Republic of Congo’s Kasai Region
Dalbit South Sudan bags Gulu and Goma WFP Jet Fuel tenders
to stem severe hunger. The communiqué issued in February confirmed that recent airlifts from France of Plumpy’Sup, a micronutrient-rich, ready-to-use supplementary food, have allowed WFP to treat 9,000 malnourished children in January.
Established in 2004, Dalbit has carved an enviable niche as the reliable and dependable energy solutions provider of choice in the frontier regions. Using its state of the art facilities, it has established itself as a progressive petroleum supply company delivering competitive and cost-efficient energy solutions across the continent.
The firm provides efficient, innovative and responsible energy solutions to clients in the development, humanitarian and economic sectors in the urban and remote regions of South Sudan. The firm has developed a fleet of operating trucks customised to traverse the challenging terrain within its areas of operation, providing a responsible and distinct market differentiation.
Dalbit South Sudan is also a keen investor in people and communities; developing human skills and investing in projects and initiatives that offer equal opportunities to its people. In partnership with the community in Rumbek, Dalbit continues to support Bishop Mazzolari School, building classrooms and amenities that have helped to provide continuous education and a sense of normalcy to the children and the community.
At the Dalbit Goma depot, engineering
works are at an advanced stage to complete
the fabrication of two petroleum products
holding tanks. Each of them, with a capacity of
1 million litres, will be connected to ancillary
infrastructure including a purpose-built fuelling bay with a further two
storage tanks for Jet A1 and Gasoil fuels.
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The newly constructed Kisumu oil jetty is set to drastically reduce cases of fuel adulteration that have been rampant in western Kenya for a long time.The KES 1.7 billion KPC’s jetty, which was completed
in February this year, will boost Kisumu’s throughput by 1 billion litres yearly in phase 1, and up to 3 billion litres per year by 2028.
Cabinet Secretary for Petroleum and Mining, John Munyes, accompanied by, Chief Administrative Secretary, John Mosonik, KPC Managing Director, Joe Sang, and other ministry officials toured the facility recently.
“In July this year, the Energy Regulatory Commission (ERC) announced that the level of fuel adulteration in the country had declined from 25 to three percent following a major crackdown of the illegal cartels”, CS Munyes said.
“This jetty is a flagship project that is going to boost Kenya’s regional trade credentials. Kenya is in pursuit of other options so as to make the jetty commercially vibrant,” the CS told reporters in Kisumu.
The completion of the jetty signifies that KPC will regain its share of the East African petroleum market part which has been lost to Tanzania’s Central Corridor.
“The introduction of an oil jetty will transform Kisumu into the region’s petroleum export hub,” said Mr Sang.
He added, “The Oil jetty is expected to create an efficient and commercially viable integrated marine fuel transportation system in the region resulting in reduced transportation costs for oil marketing companies”.
“The jetty is expected to increase maritime transport activities on the lake with the shipping and docking facilities required to support the venture also enabling other industries to develop additional transport services along the lake,”Munyes added.
The CS said sufficient and an efficient infrastructural system is vital to ensuring adequate, reliable and cost effective supply of petroleum products across East Africa.
Kisumu Oil Jetty Boost
Region
This jetty is a flagship project that is going to boost Kenya’s regional trade credentials. Kenya is in pursuit of other options so as to make the jetty commercially vibrant,” the CS
told reporters in Kisumu.
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On 4th September 2018, Vivo Energy Kenya, through its new Shell V-Power fuel & Shell Helix car engine oils announced its sponsorship for the Dala Sevens Rugby Tourney 2018 in Kisumu, the penultimate stop of the National Sevens Circuit Series.
The sponsorship deal valued at KES1 Million was to facilitate the planning of the Dala Sevens Rugby Tourney in Kisumu, the fifth in a six-leg series that includes; the Prinsloo Sevens, Sepetuka Sevens, Kabeberi Sevens, Driftwood Sevens and the Christies Sevens in Nairobi at the tail end of September.
While speaking at the official announcement of the sponsorship, Kenya Rugby Union Secretary, Jeff Gangla thanked Vivo for supporting the tournament and appreciated their commitment in growing the sport both locally and internationally.
“We are excited by the entrance of Shell Fuels and their lubricants as sponsors for this year’s Dala Sevens Rugby leg. With corporate sponsorships like Vivo Energy Kenya’s guaranteeing the game’s growth, the potential to dominate the sport on a global stage in the near future is realistic. Such platforms provide opportunities for Kenyan rugby professionals to compete at a world stage,” said Mr. Gangla.The partnership will be the second time Vivo, through Shell V-Power & Shell engine oils will be sponsoring the Kisumu rugby sevens tournament following a successful engagement that begun in 2016.
Also in attendance during the partnership launch, was Dala 7’s executive committee member, Gideon Kidenda, who expressed Kisumu RFC’s excitement on
Vivo Energy Kenya partners with Kisumu RFC
the return of Vivo Energy Kenya through their brands, Shell V-Power and Shell Helix engine oils as a sponsor of the tournament.
All smiles as Kisumu RFC receive a sponsorship cheque from Shell
V-Power and Shell Helix Ultra. L-R Kenya Rugby Union Secretary, Jeff
Gangla, Dala 7’s executive committee member, Gideon Kidenda, Vivo
Energy Kenya Lubricants Sales Marketing Manager, Stephen Gikonyo
and Vivo Energy Kenya Finance Manager, Werner Dreyer
Vivo Energy Kenya Lubricants Sales Marketing Manager, Stephen Gikonyo said the game’s adrenaline, the players’ energy reflected the qualities of Shell Fuels and engine oils, which enhance an engine’s output.
The sponsorship deal comes barely weeks after the petroleum company launched its new fuels, Shell V-Power, Shell Fuel Save Diesel and Shell Fuel Save Unleaded, which are formulated with the latest DYNAFLEX Technology that increases engine efficiency, improves fuel cleanliness and the overall engine performance.
The national Seven’s Circuit is an annual series run by KRU, a host of Kenyan clubs and universities across the country. The teams competing accumulate points in each leg with the overall winner declared champions. The Dala Sevens tournament has grown in stature since its inception in 2006 and still has room to grow with the recent addition of regional teams such as Kabras, Western Bulls and a host of universities.
We are excited by the entrance of Shell Fuels and their lubricants as sponsors for this year’s
Dala Sevens Rugby leg. With corporate sponsorships like
Vivo Energy Kenya’s guaranteeing the
game’s growth, the potential to dominate the sport on a global
stage in the near future is realistic.
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Shankan Enterprises Ltd and the Premier Agencies Group of Companies provide support to Oil Marketing Companies
in the East Africa region. Shankan are distributors of a wide range of Petroleum equipment and responsible for the marketing and importation requirements of the entire group of companies.
According to Mr Varun Sharma, the Managing Director (MD), the history of Premier Agencies dates back to 1964 when Mr Raj Sharma established it in 1964 as a sole proprietor. “The business started with one vehicle and the responsibility of 150 pumps owned by Mobil Kenya Limited. It has now grown into a company employing a staff of 80 regionally and a fleet of service vehicles to support their services throughout the region,” the MD says.
As the pioneer in the region, the companies boast of numerous firsts. These include; first company to import electronic pumps into the region, first company to install electronic metering at petroleum terminals, and first company to introduce submersible pumps at retail stations.
Recently, Shankan has led the industry into retail automation both in tank gauging and forecourt control. It has also installed terminal automation system and integrated the same with clients’ enterprise software and further automated lubricants workshops. “In short, automation is the new name of the game,” the Shankan MD says.
And although challenges such as competition and a shortage of technical manpower still face companies such as Shankan, Mr Sharma is confident of the future. He believes once a customer understands the quality and longevity of a product, they will choose better. The company is also scouting for young talent
The market has evolved positivelyin the polytechnics and training them on the job. Mr Sharma observes that since the oil industry was liberalized in the early ‘90s, indigenous companies have grown rapidly. Most of the “independents” had one or two retail outlets back in those days. Now their numbers have grown to 30s and 40s. It is encouraging to see that the quality of sites has also evolved positively for both the smaller players as well as the majors.
“The station has evolved beyond just fuelling. We see more coffee shops, fast food outlets, auto banking, pharmacies and other services attached to the stations. The majors are working with international brands while the smaller
players are also catching up fast,” Mr Sharma adds.
One of the outstanding achievements in the industry is the death of risky, substandard and cheap sites that were a menace in the ‘90s. To a large extent, the authorities have managed to vanquish random sites that do not meet set standards.
The beast that is still rearing its ugly head is fuel adulteration and LPG malpractices. According to the Shankan MD, the upward re-adjustment
of kerosene taxes is a step in the right direction. He notes that this is a significant achievement by the industry after many years of lobbying through PIEA. The next move should be to ensure LPG flourishes by getting rid of illegal dens and bringing cylinder malpractices to an end.
The recent destruction of counterfeits and illicit products by President Uhuru Kenyatta sent a strong message to the country. It is now clear that an importer can lose their entire shipment if they are defective of unlawful.
And although challenges such as competition and a shortage of technical
manpower still face companies such as Shankan, Mr Sharma is confident of
the future. He believes once a customer understands the quality and longevity of a product, they will choose better. The
company is also scouting for young talent in the polytechnics and training them on the
job.
Mr. Varun Sharma, MD Shankan Enterprises
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The government must enforce and keep enacting facilitative legislation to promote local content and support local
companies’ build their capacity.The Chief Executive Officer (CEO) Kurrent Technologies Ltd, Eng James Mwangi outlines foreign companies contracting, issuance of work permits to foreign experts and presence of unlicensed professionals in the country as some of the areas the government needs to safeguard in order to expand local content.
“The government must institute a raft of measures including enactment and enforcement of legislations that enhance local content. It should also encourage transparency in tendering processes to rope in local companies which are equally qualified for some of the international businesses available locally,” Eng. Mwangi says.
The Kurrent Technologies founder add that there is need to undertake a skills gap analysis especially in the oil industry to align missing skills with training opportunities, to enable Small and Medium Enterprises (SMEs) acquire competence skills and access financing opportunities. Eng. Mwangi observes that this would not only assist the government in tracking performance of companies but also asses their technical capacity.
“Undoubtedly, the skills gap analysis will boost the government’s Big Four agenda by creating employment opportunities, reducing cost of production, retaining wealth in the country and contributing to Kenya’s economic growth. It will also encourage locals to partner with international firms which will enhance capacity of local institutions through transfer of skills and global best practices,” Eng Mwangi, who is also Chairman of the Energy and Extractives Sector board at Kenya Private Sector Alliance (KEPSA), says.
At corporate level, Eng. Mwangi advises local companies to uphold high level of professional discipline, upscale their technical skills through training and
Enforcement of existing laws and new statutes needed to
protect localkeep abreast with technology. He vouches for p a r t n e r s h i p s with foreign firms and a network of associates to enhance skills and technology transfer to develop adequate resource capacity and a global competitive edge. He further points out that local institutions must be innovative enough to understand the needs of their customers and provide them with tailor-made solutions.
“Companies must also understand the legal and regulatory framework in their sectors of operation. They must constantly stay ahead by acquiring new skills though reading, training, attending conferences, making presentations, engaging lobby groups and being members of professional bodies in their respective areas of expertise,” Eng Mwangi adds.
The Kurrent Technologies CEO cites poor definition of project by clients, inadequate of no feasibility study for projects, unfair tendering, corruption, delayed payments and poorly defined tenders as some of the key challenges local companies face in competing for international businesses. Other challenges include foreign competition, extremely ambitious timelines by clients, unfair competition from unlicensed professionals, lack of tender evaluation criteria and incompetent technical personnel.
He urges private companies and public institutions to embrace and inculcate a good culture of corporate governance to enhance their performance as a tool of promoting integrity and professional ethics in towards achievement of organizational and national development goals.
Some of the key projects that Kurrent Technologies has undertaken
He urges private companies and public
institutions to embrace and inculcate a good culture of corporate
governance to enhance their performance as a tool of promoting
integrity and professional ethics in towards achievement of organizational and national development
goals.
include; construction of KPC’s Line 5, construction of VTTI depot in Mombasa, design and construction of National Oil and Kenol Kobil LPG plants in Nairobi. Other engineering works undertaken by Kurrent Technologies include; being ESI for Amu Power, Kipeto Wind Power project, construction of Gulf Energy thermal power plant and construction of Petro City depot at Konza. The company is currently working on the Front End Engineering Design (FEED) for Lokichar field development; a Tullow Oil project in Turkana.
Eng. James Mwangi, CEO Kurrent Technologies.
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A pioneer’s perspective
By George Wachira
George Wachira is a pioneer consultant in the oil and gas sector. He established Petroleum Focus Consultants
in 2000 to undertake studies in downstream, midstream and upstream oil and gas in the wider Eastern Africa region. He says the consultancy has achieved the objective he set out to achieve.
Niche areas of his consultancy include petroleum supply chain infrastructure and logistics studies; market and project feasibility studies; investment climate and risk assessments; energy and oil policies, legal and regulatory frameworks; merger and acquisition due diligence and organizational capacity building.
Petroleum Focus associates with a number of local and overseas consulting firms in various fields of specialization.
Some of the projects the consultancy has undertaken include the LAPSSET corridor refinery feasibility study; Rwanda downstream petroleum master plan; Uganda downstream petroleum regulatory framework; ERC petroleum regulations; the 2017 ERC cost of petroleum supply and pricing formula review; KPC Line 5 petroleum
demands study; establishment of Botswana National Oil Company; KPRL transition from Toll to Merchant refining; Rwanda petroleum strategic storage implementation; Kigali Airport Jet A-1 supply economics and strategy .
Some of the upstream tasks undertaken include the ongoing Lokichar basin development FEED studies; GIZ/SOGA upstream skills development project; Lokichar basin early oil commercialization options; RVR study on early oil export logistics at KPRL; Lokichar development energy options; and South Sudan upstream sector forward strategy; and TORs for South Sudan upstream sector audit. Mr Wachira’s oil and gas journey started in 1970 when as a Shell student undertaking Chemical Engineering at Surrey University (UK), he joined the Shell managed Mombasa refinery. In 1975, he joined the ExxonMobil companies in Kenya where he rose to be the director
in charge (at various times) of s u p p l y , economics a n d c o r p o r a t e p l a n n i n g , distribution l o g i s t i c s , engineering, international b u s i n e s s a n d l ub r i can t s
business.
He took early retirement from Mobil Kenya in 2000 to commence consultancy. During this time he also served as the CEO of Petroleum Institute of East Africa (PIEA) for six years and was also a director of Kenya Pipeline Company (KPC) for six years. He was a founder governor of KEPSA; a member of National Environmental Council (NEC); and a committee member of NAFFAC at the Ministry of Energy. In 2007, he
was awarded a state commendation – MBS, by President Mwai Kibaki for his contribution in the energy sector.
In his spare time, George is an accomplished dairy farmer in Nyeri County and also takes an interest in mentoring students who request his assistance in the areas of oil and gas. He also maintains a weekly opinion column with the Business Daily newspaper which he has written every week without fail since 2010.
Mr Wachira has seen the oil industry transform from multinational and expatriate domination in the 1970s to significant participation by Kenyans and local enterprises. The Ministry in charge of Petroleum and the regulator - ERC have supported local participation while still availing market entry by foreign investors. Accroding to George, Kenyan businesses have managed to maintain good standards of operation, as technology and skills transfer to Kenyans and their businesses have taken place at a rate that exceeds many countries in Africa.
However, he observes that in upstream oil and gas, we have not moved as fast since oil was discovered six years ago. “We still have significant gaps in local skills and in capacity for sector enterprise participation. This is an area that we need to fast track so that when construction works for crude oil production and export pipeline begins, we have significant local content participation,” he says.
He further opines that the country needs to move fast to put in place upstream legal, institutional and regulatory framework. He feels that time for studies and forums is now up as investors and the country await working systems and capacity to enable the sector catch up with the rest of the oil and gas world.
Email; [email protected], www.
petroleumfocus.com
Local content evolution:
I believe exploration, drilling and transportation of the oil deposits in the region should sound a wakeup call to
the respective governments to re-think enhancing manpower and capacity of
institutions in taking up these specialized engagements, especially in the oil industry.
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Kenya has come of age and time is ripe for the government to align training methods with the market needs of the oil industry.
This includes curriculum review, creating the necessary infrastructure and providing requisite manpower for specialized training in the industry from the smallest to highest levels in both upstream and downstream segments.
These sentiments were expressed by Mr. John Ng’ang’a a longtime School of Petroleum Studies resource person during an interview with Petroleum Insight Magazine. Acting locally and benchmarking globally is important. Currently,
Training is the engine of local content growth
opportunities arising from the recent oil discoveries in Kenya and the region would mostly benefit foreigners who possess the requisite expertise and experience.
“I believe exploration, drilling and transportation of the oil deposits in the region should sound a wakeup call to the respective governments to re-think enhancing manpower and capacity of institutions in taking up these specialized engagements, especially in the oil industry. Importing manpower has implications on a country’s economic trajectory,” Mr. N g’ang’a adds. He vouches for strong and structured partnerships between the government and private players in supporting training and offering scholarships opportunities for training outside the country to enhance local capacity.
Mr. Ng’ang’a implores Oil Marketing Companies in Kenya and the region, to structure and expand trainee intake programs to absorb trainees from local institutions for hands on experience. Though the former marketer with Shell lauds some Oil companies for offering scholarship and training programs, he feels that some OMCs have not integrated their trainee intake with the School of Petroleum Studies. He calls for collaboration between HR managers and training institutions to enhance trainee placement for internships.
The School of Petroleum Studies was incorporated in 2007 as a wholly owned subsidiary of Petroleum Institute of East Africa (PIEA) with the prime objective of offering first-class specialized training with a curriculum focused on downstream and upstream oil and gas.
Mr. Ng’ang’a lauds the formation of the school noting that besides equipping trainees with skills, the institution has added value to OMCs and the public by availing information on the industry. “Through training, we have managed to get oil and even non oil companies to start going for courses to understand what they deal with. Through partnerships, we have undertaken training on product knowledge with public and other stakeholders, to equip them with knowledge on petroleum business,
prevention and management of petroleum related disasters; this has saved many lives,” he says.
Mr Ng’ang’a is a seasoned professional with vast oil industry experience. The banker-turned marketer started his career in the oil industry with Shell in 1979. The company took him for various courses overseas up to 1980. He returned to Kenya as the regional head of marketing. He served Shell in many senior positions until retirement in 2008. He is a pioneer resource person at the School of Petroleum Studies.
I believe exploration, drilling and transportation of the oil deposits in the region should sound a wakeup call to
the respective governments to re-think enhancing manpower and capacity of
institutions in taking up these specialized engagements, especially in the oil industry.
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Mr. John Ng‘ang‘a, Resource Person, School of
Petroleum Studies.
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Kenyans require ashift in attitudes both at individual and corporate levels in-order to win the war against counterfeits and illicit
trade as well as runaway corruption.
In an interview with Petroleum Insight Magazine, Deputy Head of Public Service and Chairman of the Multi-Agency Enforcement Team Against Counterfeits and Illicit Trade, Mr. Wanyama Musiambo observes that proliferation of counterfeits in the country and entrenched illicit trade are as a result of wrong attitudes which tolerate these practices and corruption.
“Wrong attitude does not only breed corruption, but also enables related vices to thrive. Counterfeits, illicit trade and illegal immigrants are all products of corruption. So, our role as an agency is to eradicate the vices by enforcing complianceto achieve the national agenda of implementing the Big Four and realization of Vision 2030. Part of that role is indeed fighting corruption,” Mr. Musiambo said in the interview.
The government put in place the multi-agency enforcement team to support the attainment of the Big 4 agenda by among other things promoting and protecting the local manufacturing industry from unscrupulous dealers in illicit trade. This is meant to spur economic growth and create jobs and wealth, to ensure Kenya joins the league of middle income countries as espoused in the Vision 2030 economic blue print.
Fundamental shift in attitudes vital in fight against illicit trade, corruption
The compliance role of the multi agency team cuts across all sectors of the economy, with membership drawn from government institutions and trade agencies. Some keygovernment members of the team include; the Kenya Police Service, Kenya Revenue Authority,the Anti-Counterfeit Agency, Kenya Bureau of Standards, NEMA and KEPHIS. Other members of the team charged with delivering coordinated results through RRI are; Agricultural Food Authority, Pharmacy and Poisons Board, the Energy Regulatory Commission, Departments of Immigration and Health, Trade bodies among other entities.
According to Mr. Musiambo, the team has since inception in May 2018, successfully impounded goods and other illicit products worth KES 8billion from across the country. “On 31st August, this year, His Excellency the President led the destruction of goods and vehicles worth KES1.5 billion in a yard at East Africa Portland Cement premises for tax evasion,” Mr. Musiambo explains.
Further, Mr. Musiambo explains that their scope spreads across the entire economic spectrum. In the oil industry, the agency has impounded products, made arrests and destroyed structures that are used to engage in malpractices in LPG, fuel and lubricants segments. In Kiambu and Thika, illegal LPG filling structures havebeen flattened, while in Eldoret adulterated fuel has been netted and 11 people taken to court. Other seizures of different products in various parts of the country have also been made. Motor vehicle spare parts, food stuffs, construction industry and alcoholic drinks are other sectors severely hit by the counterfeit menace.
Though the agency has made commendable progress, Mr. Musiambo notes that confiscation and destruction of illicit goods is a process that takes a while because they are subjected to various investigations by several government bodies. “Various bodies are involved at different stages e.g. in investigation, seizure, testing and analysis to check conformity of goods to quality standards. If they fail the test, we move to obtain court orders to destroy the contraband and arraign the culprits in court; this takes some time,” he notes.
Acknowledging that poor manning of Kenya’s borders and laxity at the ports have contributed to influx of illegal immigrants, contraband and tax evasion, Mr. Musiambo promises that the enhanced capacity the enforcement team has put in place in these areas will yield good results. He divulges that so far 196 foreigners have been arrested and 72 have been taken to court for various offences.
“We have put in place stringent mechanisms to man our entry and exit points. In particular, we have instituted 100% verification and inspection of containers at the ports to enhance surveillance,” he adds. He feels that though a lot has been done to safeguard the entry points, more surveillance gadgets especially scanners should be provided and officers at the entry points trained.
Mr. Musiambo says the team will be conducting outreach sensitization programs across the country to educate the public on counterfeits and their role in information sharing. He lauds KEPSA and other trade bodies for information sharing which has yielded positive results.
“The public and private sectors should support the government’s efforts in the fight against corruption. Deliberate and sustained effort by all will go a long way to eradicate counterfeits in all sectors; it is possible,” Musiambo adds.
So, our role as an agency is to eradicate the vices by enforcing complianceto achieve the national agenda of implementing the Big Four and realization of
Vision 2030. Part of that role is indeed fighting
corruption.
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Mr. Wanyama Musiambo, Deputy Head
of Public Service and Chairman of the
Multi-Agency Enforcement Team Against
Counterfeits and Illicit Trade.
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The Anti-Counterfeit Agency (ACA) is the front-line coordinating government body mandated to combat trade in counterfeits and
to enforce intellectual property rights in Kenya, under the provisions of the Anti-Counterfeit Act 2008.
ACA also create public awareness and train stakeholders on counterfeiting matters as well as coordinate with the local, regional and international bodies involved in combating counterfeiting under the State Department for Trade in the Ministry of Industry, Trade and Cooperatives.
According to Ms Flora Mutahi, the ACA board chairperson, the Agency’s core values include diligence, integrity and vigilance. ACA has a critical role in combating intellectual property rights infringements to spur innovation, industrialization and economic growth. The agency promotes the ‘genuine’ across the key segments of the economy.
“We recognize that investors have invested lots of resources in building their brands and it is our duty to protect their Intellectual Property (IP) rights. There is a lot of economic gain in protecting IP as investors go where they feel protected. We need to educate our people not to rush for cheap but seek out the genuine,” Ms Mutahi says.
Protection of intellectual property is universally acknowledged as key driver in the industrialization agenda
ACA Chair calls for all-inclusive collaboration
of any country. For instance, in the government’s Big Four Agenda, growth in manufacturing is directly correlated to how authorities protect investors from counterfeiting and illicit trade.
“It is universally acknowledged that an IP portfolio contributes significantly to the value of a company, with estimates suggesting that up to four-fifths of corporate value can be based on intangible assets such as patents and trademarks. By protecting Intellectual Property, we promote innovation and in effect make our economy more competitive, productive and sustainable,” Ms Mutahi adds.
During the Jamhuri day celebrations on 12th December, 2017, President Uhuru Kenyatta directed the Anti-Counterfeit Agency and KRA to destroy counterfeit goods upon seizure as part of measures to deliver on the Big Four Agenda.
To effect this directive, a Multi-Agency team comprising of ACA, Kenya Revenue Authority, National Police Service, National Intelligence Service, Public Health, Office of Directorate of Public Prosecution, KAM, Kenya Plant Health Services and Kenya Bureau of Standards among other institutions, was formed.
The Multi-Agency team headed by the Deputy Head of Public Service Mr. Wanyama Musiambo has been in joint operation since April 2018. The team has apprehended goods worth over KSH 7.5 Billion and others worth KSH 1.5B
recently destroyed. These efforts must be sustained.“Any business that practice counterfeiting is involved in an unethical and criminal act that goes against the principles of corporate governance. Under the rules of corporate governance, industries are meant to be compliant to state laws and regulations by being transparent in their operations.” the ACA Chairperson says. The private sector plays a pivotal role in fighting counterfeits. Currently, a cooperation framework called Joint Campaign Against Counterfeits (JCAC) is in place. JCAC’s membership is drawn from the public and private sector stakeholders including Kenya Association of Manufacturers (KAM), The Retail Traders Association of Kenya (RETRAK), The Petroleum Institute of East Africa (PIEA), Consumers Federation of Kenya (COFEK), among others.
The major gaps in fight against counterfeiting include un-tethered collaboration. Looped, structured collaboration by all brand owners, government agencies, and consumers needs to play out on the battleground. Both regional and international collaboration is also needed.
The ACA’s future plan is anchored on education and public awareness that involves; capacity building programs, border inter-agency program, county awareness program, stakeholder management framework, promoting genuine, public outreach, educational outreach including the media.
We recognize that investors have invested lots of resources in building their brands and it is our duty to protect their Intellectual Property (IP) rights. There is a
lot of economic gain in protecting IP as investors go where they feel protected.
Ms Flora Mutahi, ACA board chairperson
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Kenya Association of Manufacturers (KAM) is the leading Business Member Organization in East Africa advocating against counterfeit products, and has played a noticeable lead role in the war on counterfeits and other forms of
illicit trade in Kenya, and the EAC region.
Initially, KAM advocated for the successful enactment of the Anti-Counterfeit Act 2008 and its Regulations, which provided for the establishment of the current Anti Counterfeit Agency (ACA).According to KAM Chair Mr. Sachen Gudka, their advocacy work started back in the year 2000 when manufacturers vocalized their loss of market share due to product imitations in the Kenyan market. These counterfeits were not only infringing on their intellectual property rights but also eroding the reputation of their products and companies at large, which have been cultivated earnestly over time through continuous research and development.
In an interview with Petroleum Insight Magazine, Mr. Gudka says the fight against illicit trade has been a difficult task despite numerous collaborative efforts by both Government and Industry. Recent efforts to embolden the initiative by the Office of the President assures investors of the full Government support in terms of resources, intelligence and security apparatus.“Counterfeits and illicit trade diminish our efforts to achieve the Big Four agenda as a country because every pillar of the agenda is gravely affected and inundated by counterfeits and criminal networks”, he says.
According to a study on the vice done in 2012, it is estimated that an approximate Kshs. 30 billion (US$ 42 million) is lost by Kenyan manufacturers per year, while the Government loses over Kshs. 6 billion (US$80million) annually as potential tax revenue.“Illicit trade is a global phenomenon, and it undermines the concept of a free and open marketplace, which is fundamental to improving competitiveness, increasing investment, generating jobs and improving the economy,”, he adds.
KAM lauds recent government efforts
Mr Gudka hinted that difficulties in accessing up-to-date and reliable data on illicit trade has made it impossible to fully understand the nature of the trade for many manufacturers. Fast moving consumer goods are more likely to be counterfeited due to their high demand and ready market.
“As KAM, we have noted continuous efforts by the government to tackle illicit trade in Kenya i.e. the establishment of Multi-Agency team that is composed of Anti-Counterfeit Agency, Kenya Bureau of Standards, Kenya Revenue Authority, Weights and Measures, National Police Service, National Intelligence Service, Public Health Pharmacy and Poisons Board,” he notes.The Multi-Agency team has been meeting regularly and working tirelessly to execute intelligence-led enforcement operations within the country under the Rapid Response/Results Initiative (RRI).
KAM have come together with institutions such as the Judiciary in the fight against illicit trade which has led to the development of the Illicit Trade Manual for combating illicit trade. The Association also has the report on the Intellectual Property Rights (IPR’s) regime within the East African Community that is focused on identifying gaps and recommending best practices to eliminate illicit trade in the region.
The Report recommends for instance, setting up of Anti-counterfeit agencies in all the EAC Partner States, Raise Awareness on Intellectual Property Rights, train personnel involved in intellectual property, legislate reforms in the EAC, and establish an EAC intellectual property training institute and regional property office.
Mr Gudka lauds President Uhuru Kenyatta’s appointment of the Deputy Head of Civil Service, Wanyama Musiambo, to spearhead this campaign on the fight against counterfeits and illicit trade. “This Presidential directive has facilitated an increase in public awareness on the various forms of illicit trade, and the steps being undertaken to curb this vice,” Mr. Gudka said.
KAM will continue to advocate for the Implementation of the Trade Remedies Act (2017) which seeks to deal with unfair trade practices such as dumping, subsidizing and import surges and the need to adopt technological measures to fight illicit trade. The Association is also pushing for the establishment of a special court to fast track rulings and a review towards stiffer sentences and penalties.
He urges private companies and public institutions to embrace and inculcate a good culture of corporate governance to enhance their performance as a tool of promoting integrity and professional
ethics in towards achievement of organizational and national
development goals.
Mr. Sachen Gudka, KAM Chair
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Excerpts:
QBriefly give us a brief history about the role of
State Department for Trade?
A: The State Department for Trade was established vide Executive order No.1/2016 of May, 2016 on the organization of the Government of the Republic of Kenya.
The Mandate of the State Department is to manage the development and promotion of Kenya’s Trade both at the Domestic and International level.
In order to fulfill its mandate the Department oversees the following Institutions;
1. Africa Trade Insurance Agency2. Export Promotion Council (EPC)3. Kenya National Trading Corporation (KNTC)4. Kenya Institute of Business Training (KIBT)5. Business Premises Rent Tribunal (BPRT)6. Anti - Counterfeit Authority7. Brand Kenya
QHow does it contribute to Industrial and the
Country’s economic growth?
A: The Vision 2030 identifies trade sector as a pillar to spur double digit economic growth to transform Kenya. Trade has been and will continue to support manufacturing by:
2.1. Negotiating for market access opportunities; Currently, Kenya has market access opportunities that have negotiated at Bilateral, Regional and Multilateral Level.
2.2 Resolving trade disputes and conflicts arising from trade and commerce at Bilateral, Regional and Multilateral level which cover Goods & Services including manufactured products. These also include negotiations on finding solutions to the problems of Non – Tariff Barriers to trade (NTBs) which arise from time to time.
2.3.Enforcement of Fair Trade Practices and Consumer Protection; In our efforts to promote fair import competition, the 11th Parliament enacted the Trade Remedies Act, 2017.
1.4.Use of Flexibilities in international Treaties to access Universal Health Care; Kenya has been at the forefront in looking for opportunities that allow the Government to address public health concerns in an affordable manner. That is why in 2005; Kenya joined a number
Government will not relent in illicit trade war
In the midst of a rejuvenated war on illicit goods and counterfeits by the government, Petroleum Insight sought out Dr Chris Kiptoo, Pricipal Secretary,
Department for Trade in a candid interview.
of WTO Countries which called for the amendment of the Trade Related aspects of Intellectual Property Agreement (TRIPS) to provide for flexibilities in producing medicines to address public health concerns at reasonable cost.
2.5.Promotion of locally Produced Goods and Services: This is being done under “Buy Kenya - Build Kenya strategy”. Our manufacturers in Kenya have done a lot to improve their manufacturing practices to produce goods that meet international standards but many Kenyan consumers seem not to be aware of these efforts. They continue to prefer imported goods irrespective of their quality.
Q: In your view what is the biggest impediment to trade,
industrial and economic growth?
A: We have good government policy such as the Vision 2030 that is necessary for Trade, Industrial and Economic Growth. The biggest impediment is in Execution and Coordination.
Another impediment is consistency and predictability in policy. Issues revolving around consistency and predictability of Government policy need to be addressed.
Q: From the department’s perspective, what are the reasons
behind the proliferation of counterfeits and illicit products
in the country?
A: Let me clarify that counterfeits products are some forms of illicit products. Illicit products are broadly defined to include counterfeit
Dr Chris Kiptoo, Pricipal Secretary, State Department for Trade
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products, pirated products, contraband goods, unaccustomed goods and substandard goods.
Trade in Illicit products is a global problem. It is not only confined to Kenya. If we look at the global context, In 2013, According to the Business Action to Stop Counterfeits and Piracy (BASCAP),- An intellectual Property (IP ) arm of the International Chamber of Commerce, the total value of counterfeit and pirated goods stood at arrange of $923 billion – 1.13 trillion and it is forecast to rise to $1.9-2.81 trillion by 2022.
The World Bank indicates that illicit trade has increased 7 times
faster than legal trade since the 1990s and is well over $ 1 trillion. The IMF & World Bank estimates that this parallel economy represents 15-20% of global GDP. This is huge and signifies the magnitude of the problem of this vice.
QWhat are the gaps?
A: The Gaps lie in weaknesses in national regulatory regimes and global financial and transportation links. This has been exacerbated by rapidly expanding technology contributing immensely to the proliferation of pirated goods such as software, audio and visual works.
Q: What needs to be done?
A: There is need to address weaknesses in national regulatory regimes, global financial and transportation links to deny the illicit traders the avenues for benefiting from illicit trade.
Further, coordination of law enforcement at the national level need to be enhanced and cooperation framework at the international level developed to address transboundary challenges.
There is also need for public awareness on the dangers of consuming or using illicit products. Public awareness is key in the war against illicit trade.
Q: How is the Department of Trade involved in the fight
against counterfeits and illicit products?
A: The State Department for Trade is at the core of the fight against Counterfeits and Illicit Products. As per Executive Order No. 1/2018, one of the Mandates of the Department is Co-ordination of the Multi-Agency Task Force on the elimination of Illicit Trade and Counterfeits.
Q: What are the economic implications of counterfeits to
trade and the economy?
A: The economic implications of counterfeit trade are frightening. It poses a serious threat to public safety, health and security
while depriving the government of the much needed revenue to provide public services. Further, it undermines manufacturing and creatives causing huge unemployment.
Q: What is the place of technology and innovations
in enhancing the fight against counterfeits?
A: Technology and innovation is key in the war against counterfeits. Some IP owners have invested in technologies which can identify their genuine products against fakes and have made the technologies available to some Customs Authorities in some jurisdictions. This has enabled the war on fakes to be worn. In fact, where such technologies exist and training collaborations between IP owners and law enforcement agencies exist, there is minimal or nil counterfeiting.
Q: What role should wananchi and private sector
institutions play in the fight against counterfeits
and illicit products?
A: Wananchi and Private Sector Institutions have a big role to play in the fight against Counterfeits and Illicit Products. First, by providing information on where the products are stored and traded. Second, the private sector, should not accept to trade in illicit products. Wananchi should also stop buying them. When there are no handlers and buyers of the products, the market will die. This is however difficulty since some counterfeits may be as good as the genuine product.
Third, the private player whose intellectual property has been stolen should come forward and jointly work with the law enforceable agencies. The court cases and convictions will be easily worn when they come forward as complainants and assist to differentiate between the genuine and fakes.
Q: Any Other Comment?
A: The Government is committed on the war against illicit trade and will be in it for the long haul. We have heard some traders suggesting they cool off until the Government relaxes. There will be turning back on this. The current war is under the Rapid Results Initiative (RRI). The next phase is moving towards legal and regulatory reform where the penalties for dealing with illicit trade will be very severe which may include asset forfeiture, imprisonment, destruction of goods at owners/importers costs or a combination of both. It may also include repatriation for trial in foreign jurisdictions where the trade/crime is cross boundary.
The Government is also working on a National Strategy
on the war against illicit trade. A draft is already in place and hopefully a final draft will be in place in October, 2018.
A public outreach programme on the war against illicit trade is ongoing. More resources are being mobilized for a major roll out. We hope to succeed in this war and we call on all Kenyans to assist us.
The World Bank indicates that illicit trade has increased 7 times faster than legal
trade since the 1990s and is well over $ 1 trillion. The IMF & World Bank estimates
that this parallel economy represents 15-20% of global GDP. This is huge and
signifies the magnitude of the problem of this vice.
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Global outlook
When oil prices collapsed in the 3rd Quarter of 2014, fortunes significantly turned against major oil producing countries as well as frontier countries. Companies changed strategies, slowed investments and focused on turning around profits and managing or cutting costs. Companies also divested from projects that were perceived to have been high cost and exited from several exploration frontiers that had several commitments coming up in the next few years. Kenya, being an exploration frontier country then, was also affected. Several players exited some of the exploration blocks awarded to them earlier on by the government and even though the exploration activities in Northern Kenya continued under the Tullow Oil, Africa Oil Joint Venture (then), activities slowed. Very few other players carried out drilling or seismic tests activities in the country.
Currently, global oil prices have turned around and exploration activities in several parts of the world have resumed
Big Four Agenda Success Will albeit with caution. Major oil executives are still not confident if this rallying of prices will remain for long. Many are still in the ‘lower for longer’ mode and are not ready to be caught unaware by another global oil prices collapse. They are caught in an industry war of ensuring profitability is maintained and grows vs the need to maintain a healthy reserve replacement ratio which can only happen through continuous sustained capital investments or through M&A activities.
Kenya’s Big Four Agenda
In December 2017, President Uhuru Kenyatta launched his development blue print, ‘The Big Four’ for the next four years. The blue print focuses on key basic needs that are critical in uplifting Kenyans’ standard of living of on the path to upper middle-income status by 2030. The four agendas are affordable and decent housing, affordable healthcare, food and nutritional security, and employment creation through manufacturing. These areas are expected to bolster strong inclusive economic growth and the President is determined to ensure that he leaves a strong legacy at the end of his term by ensuring that the agendas succeed.
Historically, the most fundamental defining feature of the industrial revolution was that it made possible exponential
economic growth at a speed that doubled output every two decades. This in turn radically transformed living standards. The President’s blue print can be equated to these historical industrial revolutions. Once successful, Kenya will be fully food secure, every Kenyan will access Universal Health Care, 500,000 new houses will have been constructed and Manufacturing will contribute 20% of the Kenya Gross Domestic Product doubling from the current 9%.
Manufacturing
Due to its linkage to so many other sectors in the economy, manufacturing output stimulates more economic activity across society than any other sector. Therefore, manufacturing will play a very critical role in Kenya’s economic growth and other sectors including the other Big Four agendas. As factory output grows, it will require more inputs from energy utilities and suppliers and will create job and investment opportunities in all the other sectors such as transportation, construction and retail. It will also spur growth in services such as finance, among others.
As the ripple effect is created across the Kenyan economy, one key dilemma will be availability of cheap and sustainable source of energy to power the country both in the manufacturing sector and domestic consumption.
Oil and Gas production
According to U.S. Energy Information Administration, Manufacturing Energy Consumption Survey 2014 Some manufacturers use energy sources as feedstocks—raw materials—in their manufacturing processes in the following ratios. Hydrocarbon gas liquids 45%, Natural gas 10%, Coal 9%, Coke and breeze 2%, others 34%. This shows that hydrocarbon and Natural gas constitute 55% of energy consumed by the US manufacturing industry.
By Daniel Muasya
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Spur Growth In Upstream Sector
With the global energy mix not projected to change in the next half century, Hydrocarbon and fossil fuel remains the leading source of energy for manufacturing and other sectors of the economy. Innovation has helped in reducing cost of energy production but not in developing new sources of energy that can completely replace oil and natural gas as the prime sources of energy for heavy industrial, commercial and manufacturing consumption. There has been major campaign and shift towards clean (renewable) energy, but this needs to be scaled up to huge volumes. Most of this shift has only been witnessed in domestic energy consumption.
Kenya case
Kenya recently made a breakthrough by transporting its first oil from Turkana to Mombasa by road under the Early Oil Pilot Scheme. Whereas this is not a commercial venture, technical success of this project will be a breakthrough for the country. In addition, there has been major progress in discussions around funding the pipeline project that will link the Turkana oil fields to the coast. In fact, the Kenya government and Tullow Oil have already hired Wood Group to carry out Front End Engineering Design of the pipeline with full oil production of 100,000 barrels per day expected to commence end of 2021.
If completed on time, this project will be of massive boost to the Kenyan manufacturing sector. Cheaper fuel will be available to replace hydro power and imported diesel that have been main sources of energy and have completely crippled the sector due to unsustainable energy bills.
The resulting growth in manufacturing, availability of affordable goods and services, growth in labor market, demand in agricultural inputs will create a pull that will significantly increase the demand for more energy. This will create a need to ensure the government retains a favorable reserve replacement ratio for its oil reserves.
It’s no doubt that focus on manufacturing as a key agenda presents a prime opportunity for the government to upscale its exploration activities and attract more investors in the Kenya Upstream sector. The demand and the market will be available in the next couple of years.
The writer is the Upstream Finance Manger – Shell International Exploration and Production –
Kenya
Email – [email protected]
Kenya recently made a breakthrough by transporting its first oil from Turkana to Mombasa by road under the Early Oil Pilot Scheme. Whereas this is not a
commercial venture, technical success of this project will be a breakthrough for the country. In addition, there has been major progress in discussions around funding the pipeline project that will link the Turkana oil fields to the coast.
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1. Representatives of Oil marketing companines during the unveiling
of quarter 2 industry report at Intercontinental hotel Nairobi.
2. Dr. Daniel Manduku Ag KPA MD (in a blue tie) with PIEA directors
when they paid him a courtesy at his office in Mombasa.
3. From Left - Consumers Federation of Kenya (COFEK) Secretary
General, Mr Stephen Mutoro, PIEA General Manager, Wanjiku
Manyara and other COFEK representatives when the team visited
PIEA for a meeting.
4. Total Kenya Managing Director, Olagoke Aluko (Middle) and KPC
Managing Director, Joe Sang (Right) fuel a customer’s car at
TOTAL Limuru Rd as part of this years’ Customer Service Week
Celebrations. Looking on is the service station dealer John Maina.
5. Eng. John Musonik Chief Administrative Secretary, Ministry of
Petroleum and mining reads the minister‘s speech during the
unveiling of quarter 2 industry report.
6. Vivo Energy Kenya MD Joe Muganda (Left) fuels a matatu during
the launch of Shell New fuels. Vivo Energy Kenya has launched its
new Shell fuels portfolio, (Shell V-Power, Shell FuelSave Unleaded
and Shell FuelSave Diesel), designed for engine efficiency. The
new fuels now have DYNAFLEX technology that has been
developed to help clean and protect key components in our
customers’ engines. Looking on is Lena Munuve, Vivo Energy
Kenya Retail Manager, and Mark Vivo Energy Kenya marketing
manager.
7. Mr. Varun Sharma PIEA director makes a speech during a farewell
breakfast hosted for immediate former PIEA chair, Ms. Anne-
Solange Renouard.
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128. R - L Hass petroleum chief operationg officer, Mr. Solomon
Osundwa cuts a ribbon during the commissioning of Hass
Petroleum Juja Road petrol station.
9. A team of Public Health Researchers from the University of
Liverpool, UK and Moi University, Eldoret, accompanied by
representatives of the Global LPG Partnership joined the Petroleum
Institute of East Africa to meet Mr Andrew Kamau, the Permanent
Secretary, State Department of Petroleum (Right) in Nairobi earlier
in the year.
10. Francois–Xavier Ruenes, the Total Kenya Commercial Manager
-Retail and Lubricants hands over sponsorship of the inspection
ramp for the CBA Africa Concours d’Elegance to Peter Wanday,
the Chairman of the Alfa Romeo Owners Club, looking on is
Dr. Macharia Irungu, Total Kenya Strategy and Corporate Affairs
Director. The club has organized the annual event for the past 48
years.
11. Centre: Tristar Group CEO, Eugene Mayne cuts the ribbon to unveil
one of the ablution blocks built by the Group for Kiserian Primary
School. On his left is Samuel Seki, the County Executive Member
in Charge of Education, Kajiado County and Joseph Wafula, the
Principal Economist at the Ministry of Petroleum and Mining. Tristar
Group renovated the school’s assembly grounds to make them
playable and passable during the rainy season and built three
modern ablution blocks for the school which has a population of
over 2,000 pupils at a cost of KES 11Million.
12. Total Kenya staff led by Irene Muinde, Total Kenya Human
Resources Manager (second row- 4th left) hands over a
sponsorship cheque to SOS Children’s Village for four houses
Nairobi, Kisumu & Mombasa. Staff also donated clothes, books &
toys to the village.
13. Participants of a recent service station management course at the
school of petroleum studies.
14. Participants of Supply planning optimization in the oil and gas
sector workshop in a group photo.
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The Petroleum Authority of Uganda, the body charged with monitoring and regulating oil and gas activities in the country, has opened the 2019 registration for the National Supplier Database.
Companies providing a range of services, from catering, clearing and forwarding, logistics, to security, are listed on the roster for easy access and consideration during procurement activities.While speaking at the launch of the registration process, Ernest Rubondo, the authority’s executive director said the number of companies registered on the database has increased from 513 in 2017 to 1,712 in 2018.“This is expected to increase even more in 2019,” Mr Rubondo said.
He added that the country’s oil and gas industry is “at a critical stage” with the ongoing reviews of technical front end engineering designs for the Tilenga and Kingfisher oil projects and designs for the East African Crude Oil Export Pipeline.“These studies involved an extensive engineering and project cost valuation process to plan for the required facilities and describe the project economics,” he said.
“The studies also defined the specific nature, quality and quantities of goods and services required for these projects, together with the possible sources including those that will be sourced from Uganda.”
Projections show that Cnooc, Tullow, and Total – the three joint venture partners licenced to develop Uganda’s oil resources – will invest approximately Shs22 trillion ($7b) in activities leading to production. This is in addition to the $4bn to be spent on constructing an oil refinery and $3.5bn on a crude oil pipeline to the Tanzanian coast.
Mr Rubondo also asked suppliers who registered in earlier rounds to update their contact details as proof that they are active or else they will be removed after three years.The database was rolled out in July last year. The authority expects to develop it into a centralised joint qualification and e-marketplace for all oil related procurement.
Petroleum Authority of Uganda opens
2019 suppliers registration
Uganda National Oil Company Ltd signed a Memorandum of Understanding (MoU) with China National Offshore Oil Company (CNOOC) to work together to start exploration in the Albertine
Graben.The MoU was signed by Dr. Josephine Wapakabulo, the Chief Executive Officer (CEO) UNOC and Fang Zhi, the Chairman of CNOOC International in Beijing late September and was witnessed by President Yoweri Kaguta Museveni, Hon. Sam Kuteesa, Minister of Foreign Affairs and Mr. William Byaruhanga the Attorney General.
The MoU indicates that UNOC and CNOOC will work together to develop a block in the Albertine Graben and the two entities intend to start the process of accessing the identified block as soon as possible.
The purpose of this cooperation is to ensure that more crude oil is discovered to support the projected production profile of already discovered resources that are under development as well as create an avenue for UNOC to grow its exploration capabilities and begin its journey towards a fully-fledged oil company able to perform operatorship roles.
It is the intention of the two companies to start the process of applying for the identified block in October and start exploration activities as soon as the Ministry of Energy and Mineral Development (MEMD) grants them a license.
It is hoped that the licensing process will not take long and it is planned that the planned activities should start early next year. “UNOC and CNOOC plan to grow their partnership into other operations in and outside of Uganda. UNOC will rely heavily on CNOOC’s experience as a national oil company to grow its capabilities and expertise,” the statement reads in part.
President Yoweri Kaguta Museveni was pleased with the step UNOC and CNOOC were taking in furthering exploration in the Albertine Graben. Dr Josephine Wapakabulo indicated that UNOC is happy to continue building on a very firm and longstanding relationship between the People’s Republic of China and the Republic of Uganda.
She confirmed UNOC’s commitment to ensuring sustainable as well commercial exploitation of Uganda’s Crude oil and gas sector. CNOOC, confirmed their continued commitment to Uganda and working with UNOC to ensure national participation as well as supporting UNOC on its journey to operatorship.The MoU will be followed by further commercial agreements and it is hoped that these and all relevant approvals will be concluded before end of this year so exploration starts in 2019.
UNOC, CNOOC to start joint oil
exploration in 2019
Projections show that Cnooc, Tullow, and Total – the three joint venture
partners licenced to develop Uganda’s oil resources – will invest approximately Shs22 trillion ($7b) in activities leading to production. This is in addition to the
$4bn to be spent on constructing an oil refinery and $3.5bn on a crude oil
pipeline to the Tanzanian coast.
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Ethiopia’s nascent energy industry is gathering pace, with a unit of China Poly Group Corp. starting test output of crude oil in a volatile
border region and the government estimating initial annual income of $1.2 billion when gas exports begin from the area.
Oil and gas income will be a major boost to the landlocked Horn of Africa nation’s economy, bringing in much-needed foreign exchange as well as saving on imported fuels, Prime Minister Abiy Ahmed said late Wednesday in a televised address. The United Arab Emirates this month pledged $3 billion in aid and investments to Ethiopia.
Earnings from estimated natural gas reserves of 8 trillion cubic feet from the Ogaden Basin may be as much as $7 billion a year once it can produce at full capacity, Abiy was cited by the state-owned Ethiopian Herald as saying on Thursday. Beijing-based China Poly that day began crude testing in three areas of the Hilala and Calub localities of Ogaden, which borders war-torn Somalia.Ethiopia’s economy -- the fastest-growing on the continent -- is state-planned and focused mostly on agriculture, export-led manufacturing and large-scale infrastructure projects.
Ethiopia’s Nascent Oil & Gas Gathering PaceSince Abiy took office in April, the ruling party has announced plans to open up state monopolies including airlines and telecommunications to foreign investors, while oil- and gas development, planned for years, is gearing up.
Starting Pipeline
Ethiopia plans a natural gas pipeline from the Ogaden to a port complex on the Red Sea in neighboring Djibouti. Abiy said on Wednesday that construction will start in September and exports will begin in 2021.Poly-GCL Petroleum Group, a partnership between China Poly and closely held Hong Kong-based Golden Concord Group Ltd., signed five production-sharing agreements
with Ethiopia in 2013 to explore in the Ogaden.
After Abiy met Somali President Mohamed Abdullahi Mohamed in mid-June, they announced they’d develop four seaports in unspecified locations
to serve the Red Sea and Indian Ocean as well as highways linking the two countries.
“We discussed how this oil goes to their direction and comes to our direction,” Abiy said in his Wednesday address. Abdisaid Ali, national security adviser to Somalia’s president, and Nafisa Santur, senior political adviser to the country’s prime minister, didn’t immediately respond to Bloomberg requests for comment on the ports.
Abiy also talked about increasing security cooperation with Somalia’s federal government, referring to forces that may try to halt the project in the disputed area.In April 2007, an Ethiopian rebel group, the Ogaden National Liberation Front, attacked a site operated by China’s Zhongyuan Petroleum Exploration Bureau in the area, killing nine Chinese workers and 65 Ethiopians. The insurgents have been fighting for self-determination since 1984.
The Tanzania Petroleum Development Corporation (TPDC) has issued an expression of interest document for a
feasibility study on the construction of a gas pipeline between Tanzania and Uganda.
Responses to the EOI would need to be submitted and tender documents filed by in October, targeting contract award on 9 November.
This ambitious pipeline would run from Dar es Salaam to Uganda via the port of Tanga on the Indian Ocean, Mwanza on the southern shore of Lake Victoria and the Kagera region of Tanzania adjacent to the border with Uganda.
Tanzania and Uganda signed an agreement to construct a natural gas pipeline in August 2018. This took place after a three-day Joint Permanent
Expression of Interest for Tanzania – Uganda gas pipeline out
Commission Summit held in Kampala from August 21-23. The summit which was led by Tanzania’s Foreign Minister, Augustine Mahinga and Uganda’s Minister of Energy, Irene Muloni, was also attended by Uganda’s Ambassador to Tanzania, Richard Kabonero and officials from ministries of Defence, Energy, Trade and Agriculture.
Apart from an approximate 200-kilometre section between Dar es Salaam and Tanga, the route is expected to parallel the 1445-kilometre path of the East Africa Oil Pipeline, which will transport waxy oil from Hoima on the shore of Lake Albert in north-west Uganda to Tanga.
Currently, gas from the Mnazi Bay field in southern Tanzania is transported to Dar es Salaam by a China-funded and -built 542-kilometre pipeline.
Some 57 trillion cubic feet of recoverable gas has been found in Tanzania to date, mostly in its southern offshore waters, although some is held in a clutch of onshore finds in the north.
Much of the offshore gas will underpin liquefied natural gas developments but the remainder could find a ready market in Tanzania or possibly Uganda.
Much of the offshore gas will underpin
liquefied natural gas developments but
the remainder could find a ready market in Tanzania or possibly
Uganda.
Oil and gas income will be a major boost to the landlocked Horn of Africa nation’s economy,
bringing in much-needed foreign exchange as well as saving on imported fuels, Prime Minister Abiy
Ahmed said late Wednesday in a televised address.
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S Anadarko Petroleum expects to make a Final Investment Decision (FID) for its Mozambique LNG project in the
first half of 2019.
The Anadarko-operated Mozambique LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.
The approval from the government of Mozambique for the Golfinho/Atum field development plan was received in March 2018.
Following the approval, during the second quarter of this year, Anadarko and its Area 1 co-venturers signed a Heads of Agreement with Tokyo Gas and Centrica for long-term LNG off-take of 2.6 MTPA.
In its report for the second quarter of 2018 releases on Tuesday, Anadarko said that
Anadarko targets first half of 2019 for Mozambique LNG Decision
it achieved significant advancements on the Mozambique LNG project, including new heads of agreements and expected cost reductions, with an anticipated Final Investment Decision (FID) during the first half of 2019.Progress continues on converting the FID target off-take volume from non-binding commitments to long-term SPAs, Anadarko stated.
Al Walker, Anadarko Chairman, President and CEO, said: “Our Mozambique LNG project has made excellent progress, and
Italian oil company Eni has marked the beginning of construction of the hull for Coral South floating LNG (FLNG) unit for a project located offshore
Mozambique.
At the presence of Mozambique’s Minister of Mineral Resources and Energy, Ernesto Max Tonela, Eni and its Area 4 partners held on Thursday at Geoje Island, South Korea, the “First Steel Cut” ceremony that marks the beginning of the construction of the hull of Coral South’s FLNG vessel.
The ceremony took place just 15 months after Coral South Project’s Final Investment Decision (FID), highlighting the commitment of Area 4 Partners to start LNG production by 2022.
To remind, Eni sanctioned its Coral South project in June 2017 and achieved
Eni marks Coral South floating LNG unit offshore Mozambique
we expect a Final Investment Decision in the first half of 2019.”
Additionally, the company and its contractors expect to realize substantial cost savings, with Anadarko now expecting to deliver the first two onshore liquefaction trains with 12.88 million tonnes per annum (MTPA) capacity for less than $600 per tonne.
Aandarko also said that recommendations for award of the offshore contractor and equipment providers are progressing through
internal, co-venturer and Government of Mozambique approval.
Activities at the Afungi onshore site, including resettlement, continue to ramp up as Anadarko positions the onshore area for construction. Subsequent to quarter end, Area 4 joined the Anadarko-led Resettlement project as a 50% participant.
financial close for a total amount of around $4.7 billion for the Coral South FLNG multi-sourced project financing in December 2017.
Announcing the beginning of construction on Thursday, Eni said that the hull is designed to accommodate the storage facilities for all the substances that will be processed and produced in the floating liquefaction plant, mainly Liquefied Natural Gas (LNG) and condensates. In addition to the storage tanks, some of the electrical, instrumentation and mechanical rooms, as well as all maritime systems related to cargo management, will be located in the hull.
The FLNG construction started with the steel cut for the ship’s turret, which took place in March this year in Singapore.The other main component of the FLNG, the topside modules, will also be built in South Korea at the Samsung Heavy Industries shipyards and the construction is planned to start end of this year. Eni said that the FLNG is expected to be completed by the end of 2021 and first gas is expected in 2022.
Eni is the delegated operator for the Coral South FLNG project, the first project to monetize the world class gas resources discovered in Area 4, Mozambique. The Area 4 participants are Eni (25%), ExxonMobil (25%), CNPC (20%), Empresa Nacional de Hidrocarbonetos E.P. (10%), Kogas (10%) and Galp Energia (10%).
Image courtesy of Anadarko
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On 22nd October 1879 the world applauded Thomas Alva Edison for his greatest
invention of Incandescent bulb. Before his time, many scientists had experimented on electric bulb but Edison became the hallmark. He is just not recognized for his invention of an object but respected as remover of darkness.
There was rapid commercialization of incandescent bulbs to replace candles and kerosene lamps. This resulted in more experiments and fluorescent bulb evolved. The bulb made its first public appearance in 1939 World’s Fair New York. As the world has increasingly industrialized and urbanized, the demand for energy has grown exponentially with demand exceeding supply. This situation opened the way to the concept of “energy efficiency” and has recently resulted to the new born of revolutionary technology called Light Emitting Diodes or LED.
LED lighting is a promising technology as it addresses greater economic and commercial viability. Practically, the life of the LED is infinite. However, due to technological implementation, the life gets limited but is still way longer than CFL or incandescent bulbs. The time shift from Incandescent to Florescent was sluggish not an exact replacement due to functional incompatibilities with advanced
Energy efficiency and the evolution of the light bulb
By Prakriti Raghavan
technologies like Most lighting controls – including solid state switches, motion-detecting switches, occupancy sensors, sound sensors, wireless controls, and dimmers. From the last decade, LEDs have gained tremendous traction across the globe due to efficiency, longevity and performance. Starting from street lights, traffic lights, TV’s computes, phones, office & home lighting etc… they are everywhere.
Drawbacks LED emits 90% of the heat from its input power and provides only 10% as light. Proper grade fixtures helps for accurate thermal sync. Costing plays a vital role in the selection of LED lightings. Generally higher costs LEDs have perfect heat sync and universal drivers. Till the advent of LED, the light output was measured by input energy in Watts. With LEDs, it has shifted to measure the light output in actual illumination or Lumens.Application in Smart Building enables various electronics and electrical components into one system which can monitor, control and value add efficiency into the system and makes it intelligent. In typical commercial or office spaces, the light will be on from 6 am till 8pm which are consuming 100% of the energy irrespective of the day light and occupancy.
With smart connected lighting system, the sensors are interfaced which recognises the occupancy and the day light harvesting can be utilised in blend with artificial lighting. The wireless technology eradicates human intervention of switching on/off lights and advance dimming technology triggers automatic dimming during non-occupancy or sunlight. The system not only provides uniformity in lighting but also efficient and effective lighting with
a saving up to 90%.CosmolSol Limited is an Indian origin, Kenya-based company that represents a unique, transformative combination of minds and talents to harness innovations to empower enterprises and business. A new entrant to African Market, the company is committed to bring the best of technologies from IoT, AI, Embedded Systems, Big Data Analytics and Power electronics that can bring the difference in energy space.
Prakriti Raghavan is the Executive Director,
CosmolSol Limited. Email; corporate@
comsolltd.com www.comsolltd.com
LED lighting is a promising technology
as it addresses greater economic and commercial viability. Practically, the life of
the LED is infinite.
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What happens when an industrial valve malfunctions? Most industries would prefer to buy a new valve. In such a scenario, it will take a lead time of up to 24 weeks from machining, assembly, testing, painting, packing,
dispatching to the customer and installation at site. In addition, it results in operational downtime for the industry, under-utilisation of resources, customer delivery pressure and the additional investment of replacing a new valve. Time, engineering and cost invested are the major risks that customers have to cope with due to valve malfunction at site.In Kenya, this situation can be ascertained by visiting the backyards of most of the process industries. They have a huge pile stock of valves that have been discarded as scrap.Rehabilitation of valves is a solution to minimise the above risk that industries face. The cost, time and engineering incurred to rehabilitate a valve is far lower than the expenses of a new valve.
Innogrative Solutions for Industrial Valve Rehabilitation
By Zoher Pirbhai
Burhani Engineers who are the pioneers of providing innogrative solutions for the engineering sector, are ready with their new Innogration Hub offering valve testing and rehabilitation.The main objective of setting up a valve rehabilitation hub is to provide effective solutions for all kinds of valve repairs irrespective of the size, type and class ratings. This includes machining, assembly & disassembly, hydro testing, pneumatic testing, functional testing, pressure limit testing, seat -disc lapping, valve parts changing, actuator modifications for safety, isolation and control valves.
This reaffirms our commitment to our customers that we take smart risks, listen, understand and learn from each other as we continually raise the bar of our performance to deliver real value.
The Burhani Valves Testing and Rehabilitation workshop is equipped with world class equipment, machinery and combined with a dedicated team of technicians who have a decade of experience to provide best solutions for all kinds of valves. When a valve is received for testing and rehabilitation, a detailed condition assessment and repair plan is documented. This report is stored and is accessible in our data management system. Customers will receive an electronic certificate for each valve, incorporating full details of the valves’ service activities along with the compliance to testing standards.
Besides the rehabilitation, we are ready to provide onsite solutions and technical training on valve maintenance. Supporting customer education by offering a broad range of training tools and courses aimed at improving valve performance.
Rehabilitating valves from processing plants will fundamentally drive significant operational efficiencies, higher profitability and business growth.
The consequent increase in asset utilisation will result in significant financial improvement in production operations. In conclusion, Burhani Engineers prides itself on delivering the industry’s best innogrative solutions that will have a positive impact on their capital and operational expenditure. Burhani Engineers Limited (BEL) is local Kenyan engineering company, with offices in Nairobi, Mombasa - Kenya and Dar-es-Salaam - Tanzania. We primarily focus on providing innogrative engineering solutions in East and Central Africa with customised solutions in the engineering disciplines of Electrical, Instrumentation, Mechanical and Civil.
Zoher Pirbhai is the Managing Director, Burhani Engineers.
Email: [email protected]
Besides the rehabilitation, we are ready to provide onsite solutions and technical
training on valve maintenance. Supporting customer education by offering a broad
range of training tools and courses aimed at improving valve performance.
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Petroleum Taxes Import
Duty Excise Duty VAT Road Mainten.
Levy Petroleum Devel. Levy
Import Decl. Form
Remission Kshs/Litre
Adulteration Levy
Motor Spirit (Gasoline) Regular
- 19.505 8% 18.00 0.40 2.25% 0.45 -
Motor Spirit (Gasoline) Premium
- 19.895 8% 18.00 0.40 2.25% 0.45 -
Aviation Spirit - 19.895 8% - 0.40 2.25% 0.45 -
Spirit Type Jet Fuel - 19.895 8% - 0.40 2.25% 0.45 -
Special Boiling Point & White Spirit
- 8.500 8% - - 2.25% 0.30 -
Other Light Oils and Preparations
- 8.500 8% - - 2.25% 0.30 -
Partly refined (including topped crudes)
- 1.450 8% - - 2.25% 0.30 -
Kerosene type Jet Fuel
- 5.755 8% - 0.40 2.25% 0.45 -
Illuminating Kerosene (IK)
- 7.250 8% - 0.40 2.25% 0.45 18
Other Medium oils and preparations
- 5.300 8% - 0.40 2.25% 0.30 -
Gas Oil (automotive, light, amber for high speed engines).
- 10.305 8% 18.00 0.40 2.25% 0.30 -
Diesel Oil (ind heavy,black for low speed marine and stationery engines).
- 3.700 8% - 0.40 2.25% 0.30 -
Other Gas Oils - 6.300 8% - 0.40 2.25% 0.30 -
Residual Fuel oils 125 cst.
- 0.300 16% - 0.40 2.25% 0.30 -
Residual Fuel oils 180 cst.
- 0.600 16% - 0.40 2.25% 0.30 -
Residual Fuel oils 280 cst.
- 0.600 16% - 0.40 2.25% 0.30 -
Other residual fuels - 0.600 16% - 0.40 2.25% 0.30 -
Lubricating oils 25% - 16% - - 2.25% -
Lubricating greases 25% - 16% - - 2.25% -
Batching oils 25% - 16% - - 2.25% -
Butanes (Petroleum gases)
- - - - 0.40 2.25% -
Petroleum Bitumen 10% - 16% - 0.40 2.25% -
Bituminous or oil shale and tar sands
10% - 16% - 0.40 2.25% -
Bituminous mixures 10% - 16% - 0.40 2.25% -
36
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Kenya Petroleum Sales
MarketShare
Overal Market Share(Including Exports) April - June 2018
Vivo 14.6%
Total 13.2%
Kenol Kobil 13.2%
Libya Oil 5.3%
GULF 5.1%
NOCK 5.0%
PETRO 4.5%
HASS 3.7%
Bakri 2.7%
GAPCO 2.6%
ROYAL 2.5%
TEXAS 2.3%
TOSHA 2.0%
GALANA 1.7%
STABEX 1.4%
FOSSIL 1.4%
DALBIT 1.2%
ORYX 1.2%
Engen 1.1%
CITY OIL 1.1%
TRISTAR 0.9%
AINUSHAMSHI 0.9%
OLYMPIC 0.8%
ONE PETROLEUM 0.8%
ASPAM 0.7%
RIVAPET 0.7%
EAGOL 0.7%
LUQMAN 0.7%
RH DEVANI 0.7%
MOGAS 0.6%
AXON 0.5%
FINE JET 0.5%
LEXO 0.5%
ASTROL 0.4%
BACHULAL POPATLAL (K) LTD
0.4%
MSOIL 0.4%
FUTURES 0.4%
BANODA 0.3%
RANWAY 0.3%
OIL ENERGY 0.3%
KENCOR 0.3%
OCEAN ENERGY 0.2%
GASLINE 0.2%
TOWBA 0.2%
GLOBAL 0.2%
BRAINFIELD 0.2%
PETROCAM 0.2%
TIBA 0.2%
SAVANNAH ENERGY 0.1%
AFRO 0.1%
OTHERS 1.1%
TOTAL 100.0%
Q1 RESULTS
Products 2017 Jan-March 2017Jan-March
2018
% Change Compared to same period
2018
Jan-June 2016
Avgas 2,007 537 466 -15% 761
Jet A-1 879,243 178,399 215,537 17% 413,555
Premium Gasoline 1,711,426 415,247 453,564 8% 787,901
Regular Gasoline - -
Kerosene 533,794 142,646 118,763 -20% 269,062
Gas Oil 2,509,585 622,874 642,419 3% 1,249,499
Industrial Diesel 2,155 487 20 -2344% 418
Fuel Oils 603,843 145,866 166,033 12% 154,700
Bitumen* 1,770 117 171 32% -
Lubricants 52,402 13,793 13,692 -1% 26,822
Greases* 2 - - 13
TOTAL 6,298,245 1,519,966 1,610,664 6% 2,902,731
Units in M3
* Units in Metric tonnes
37
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HALF YEAR RESULTS Q2 RESULTS Q2 vrs Q1 2018
% Change Compared to same period
2017
Jan-June 2017
Jan-June 2018
% Change Compared to same period
2018
April-June 2017April-June
2018
% Change Compared to same period
2018
% Change
20% 955 1,643 42% 418 1,177 64% 60%
-6% 389,138 405,302 4% 210,739 189,764 -11% -14%
6% 836,411 896,723 7% 421,164 443,159 5% -2%
- - - -
6% 286,093 223,136 -28% 143,447 104,374 -37% -14%
-1% 1,240,340 1,282,638 3% 617,466 640,219 4% 0%
85% 2,807 20 -13984% 2,320 -
53% 326,214 251,686 -30% 180,348 85,652 -111% -94%
100% 1,125 429 -162% 1,008 258 -290% 34%
0% 26,749 26,041 -3% 12,956 12,349 -5% -11%
- 606 100% - 606 100% 100%
7% 3,109,832 3,088,223 -1% 1,589,866 1,477,559 -8% -9%
Kenya Petroleum Sales Market Share April - June 2018
VIVO 19.5%
Total 16.2%
Kenol KOBIL 13.8%
Libya Oil 7.0%
NOCK 6.7%
GULF 5.2%
PETRO 3.7%
Bakri 2.8%
GAPCO 2.6%
HASS 2.1%
TOSHA 1.8%
GALANA 1.6%
TEXAS 1.5%
Engen 1.5%
ORYX 1.3%
ONE PETROLEUM 1.1%
DALBIT 1.0%
ASPAM 0.7%
FOSSIL 0.7%
EAGOL 0.6%
RH DEVANI 0.6%
LEXO 0.6%
RIVAPET 0.6%
ROYAL 0.6%
AINUSHAMSHI 0.6%
OLYMPIC 0.5%
ASTROL 0.5%
BACHULAL POPATLAL (K) LTD
0.5%
LUQMAN 0.4%
MOGAS 0.3%
KENCOR 0.3%
FUTURES 0.3%
STABEX 0.3%
TOWBA 0.2%
PETROCAM 0.2%
SAVANNAH ENERGY 0.2%
Amana 0.2%
TRISTAR 0.2%
PERFORMANCE PARTS
0.2%
TIBA 0.2%
Oilcom 0.2%
AXON 0.1%
BRAINFIELD 0.1%
PRIME REGIONAL 0.1%
JAGUAR 0.1%
HELLER 0.1%
OCEAN ENERGY 0.1%
GLOBAL 0.1%
GUUL 0.1%
FINE JET 0.1%
HASHI 0.1%
OTHERS 0.2%
TOTAL 100%
Lubricants Market Share April - June 2018
VIVO 39.8%
Total 36.4%
Libya Oil 11.4%
KKOBIL 10.3%
NOCK 0.9%
FUTURES 0.7%
HASS 0.3%
Engen 0.3%
AINUSHAMSHI 0.1%
TOTAL 100%
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Civil Aviation Market Share
Company Percentage
Kkobil 47.5%
Bakri 18.1%
GULF 13.7%
Libya Oil 12.4%
VIVO 3.8%
Total 2.2%
HASS 1.2%
FINE JET 0.6%
HELLER 0.3%
TRISTAR 0.1%
TOTAL 100.0%
Retail Outlets Market Share
VIVO 28.5%
Total 22.5%
KKOBIL 10.0%
NOCK 8.0%
Libya Oil 6.9%
PETRO 4.1%
GULF 2.7%
GALANA 1.4%
TOSHA 1.3%
LEXO 1.3%
Engen 1.2%
ASTROL 1.1%
RIVAPET 1.1%
LUQMAN 0.8%
BACHULAL POPATLAL (K) LTD
0.8%
HASS 0.7%
KENCOR 0.7%
Bakri 0.6%
STABEX 0.5%
AINUSHAMSHI 0.5%
TOWBA 0.5%
PETROCAM 0.5%
SAVANNAH ENERGY 0.4%
EAGOL 0.4%
MOGAS 0.4%
Amana 0.4%
TIBA 0.3%
GAPCO 0.3%
ORYX 0.3%
OLYMPIC 0.3%
ASPAM 0.3%
AXON 0.3%
BRAINFIELD 0.3%
Oilcom 0.2%
TEXAS 0.1%
HELLER 0.1%
OCEAN ENERGY 0.1%
EON ENERGY 0.1%
HASHI 0.1%
TOTAL 100.0%
Resellers Market Share
GAPCO 10.4%
Total 10.2%
PETRO 7.7%
TEXAS 6.2%
NOCK 6.1%
VIVO 5.2%
TOSHA 4.9%
ORYX 4.7%
ONE PETROLEUM 4.6%
Engen 4.2%
HASS 3.9%
Libya Oil 3.5%
GALANA 3.2%
KKOBIL 2.9%
FOSSIL 2.8%
ROYAL 2.5%
ASPAM 2.5%
GULF 1.9%
EAGOL 1.7%
OLYMPIC 1.7%
DALBIT 1.6%
AINUSHAMSHI 1.4%
FUTURES 1.1%
Bakri 0.8%
PERFORMANCE PARTS 0.7%
TRISTAR 0.7%
PRIME REGIONAL 0.4%
GLOBAL 0.4%
MOGAS 0.3%
BACHULAL POPATLAL (K) LTD
0.3%
JAGUAR 0.2%
HAMMEX 0.2%
BANODA 0.2%
Oilcom 0.2%
OCEAN ENERGY 0.2%
EON ENERGY 0.2%
CITY OIL 0.2%
LUQMAN 0.1%
HASHI 0.1%
LEXO 0.1%
Amana 0.1%
TOTAL 100.00%
Top Industry Consumers
Retail Outlets 46.8%
Reseller 23.5%
Civial Aviation 12.7%
Manufacturing 5.8%
Transport & Communication
2.2%
Building & Construction 1.8%
Energy Production 1.1%
Agriculture 0.6%
Mining 0.4%
Government 0.4%
Tourism 0.1%
Military 0.1%
Other Comercial 4.6%
TOTAL 100.0%
SECTOR SHARESector Sales April-June 2018
39
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0
20
40
60
80
100
120
2015
2017 2016 2015
Super Petrol 2017
Automotive Diesel 2017
Super petrol-2016
2017 Automotive Diesel-2016
Super petrol-2015
2017 2016 Automotive Diesel-2015
Nairobi Diesel Pump Prices
uper pe
2017 2016 omo
NAIROBI PUMP PRICES
0
20
40
60
80
100
120
PU
MP
PR
ICE
Month
Nairobi Super Petrol Pump Price
Super Petrol 2017 Super petrol-2016 Super petrol-2015
MONTHS Automotive Diesel-2016
Automotive Diesel-2015
Kerosene 2017 Kerosene-2016 Kerosene-2015
January 76.7 83.35 63.44 46.13 65.59
February 67.88 75.52 67.19 39.62 52.40
March 65.70 76.20 67.96 42.15 55.75
April 66.23 77.48 64.38 43.96 57.21
May 70.37 79.34 65.28 46.98 59.24
June 73.71 83.31 65.35 58.04 61.78
July 83.24 84.56 62.56 61.45 62.74
August 84.51 83.35 63.42 62.58 57.98
September 82.12 79.99 64.36 58.71 52.55
October 82.17 82.43 66.88 62.16 56.04
November 87.22 79.66 71.23 63.56 54.81
December 87.22 78.51 71.41 63.56 53.27
MONTHS Super Petrol 2017 Super petrol -2016 Super petrol -2015 Automotive Diesel 2017
January 96.01 88.64 92.88 84.23
February 100.27 86.50 84.71 89.26
March 101.05 85.58 89.46 90.04
April 98 80.71 89.35 88.62
May 99.59 84.25 92.89 88.05
June 98.73 86.17 97.28 86.89
July 97.1 92.23 98.59 84.46
August 96.08 95.13 102.65 85.86
September 98.30 91.56 102.65 86.86
October 101.67 94.94 93.29 88.71
November 102.7 94.2 90.46 92.41
December 104.7 94.2 90.06 92.44
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Maximum pump prices (15th September to 14th October 2018)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 114.15 116.79 117.25 118.26 118.25
Automotive Diesel 105.5 108.12 108.81 109.81 109.81
Kerosene 105.78 108.41 109.1 110.09 110.09
Maximum pump prices (15th August to 14th Septmber 2018)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 124.49 127.8 128.46 129.64 129.71
Automotive Diesel 111.78 115.08 115.97 117.15 117.22
Kerosene 94.61 97.41 98.22 99.29 99.29
Maximum pump prices (15th July to 14th August 2018)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 108.9 112.2 112.87 114.05 114.12
Automotive Diesel 99.96 103.25 104.14 105.32 105.39
Kerosene 82.94 85.73 86.54 87.61 87.61
Maximum pump prices (15th June to 14th July 2018)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 105.51 108.81 107.86 109.05 109.11
Automotive Diesel 100.31 103.6 99.54 100.72 100.79
Kerosene 81.31 84.1 79.05 80.12 80.12
Maximum pump prices (15th May to 14th June 2018)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 103.88 107.17 107.86 108.71 108.78
Automotive Diesel 95.35 98.64 99.54 99.94 100.01
Kerosene 75.44 78.22 79.05 78.63 78.62
Maximum pump prices (15th April to 14th May 2018)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 103.54 106.83 107.53 110.67 110.74
Automotive Diesel 94.57 97.86 98.76 105.67 105.74
Kerosene 73.94 76.72 77.56 85.99 85.98
Maximum pump prices (15th March 2017 to 14th April 2018)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 100.89 104.7 104.88 106.06 106.13
Automotive Diesel 89.17 92.44 93.66 94.54 94.61
Kerosene 68.65 71.42 72.77 73.34 73.34
Maximum pump prices (15th Novemebr 2017 to 14th December 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 99.42 102.7 103.42 104.6 104.67
Automotive Diesel 89.13 92.41 93.32 94.51 94.57
Kerosene 68.46 71.23 72 73.15 73.15
Maximum pump prices (15th October 2017 to 14th Novemeber 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 98.39 101.67 102.39 103.57 103.64
Automotive Diesel 85.44 88.71 89.64 90.82 90.89
Kerosene 63.41 66.18 67.04 68.12 68.11
Maximum pump prices (15th september 2017 to 14th october 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 95.08 98.3 99.04 100.22 100.29
Automotive Diesel 83.63 86.86 89.04 88.98 89.04
Kerosene 61.63 61.63 66.3 66.3 66.3
PUMP PRICES
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Maximum pump prices (15th August 2017 to 14th September 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 92.86 96.08 96.83 98.01 98.09
Automotive Diesel 82.63 85.86 86.8 87.98 88.04
Kerosene 60.69 63.42 64.3 65.37 65.37
Maximum pump prices (15th July 2017 to 14th August 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 93.87 97.1 97.84 99.02 99.09
Automotive Diesel 81.24 84.46 85.41 86.59 86.66
Kerosene 59.83 62.56 63.44 64.51 64.51
Maximum pump prices (15th June 2017 to 14th July 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 95.47 98.73 99.47 100.65 100.72
Automotive Diesel 83.63 86.89 87.83 89.01 89.08
Kerosene 62.29 65.35 65.92 66.99 66.98
Maximum pump prices (15th April 2017 to 14th June 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 96.32 99.59 100.32 101.5 101.57
Automotive Diesel 84.79 88.05 88.95 90.16 90.23
Kerosene 62.52 65.28 66.15 67.22 67.22
Maximum pump prices (15th March 2017 to 14th April 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 97.63 101.05 101.78 102.96 103.03
Automotive Diesel 87.04 90.44 91.36 92.54 92.61
Kerosene 65.11 67.9 68.83 69.9 69.88
Maximum pump prices (15th February 2017 to 14th March 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 96.85 100.27 101 102.18 102.25
Automotive Diesel 85.87 89.26 90.19 91.38 91.44
Kerosene 64.64 67.19 68.06 69.13 69.12
Maximum pump prices (15th January 2017 to 14th February 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 92.6 96.01 96.76 97.94 98.01
Automotive Diesel 80.53 84.23 85.18 86.36 86.43
Kerosene 60.6 63.44 64.32 65.39 65.39
Maximum pump prices (15th December 2016 to 14th January 2017)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 90.8 94.2 94.96 96.14 96.21
Automotive Diesel 83.83 87.22 88.16 89.34 89.4
Kerosene 67.1 63.56 64.43 65.8 65.5
Maximum pump prices (15th November 2016 to 14th December 2016)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 91.53 94.94 95.7 96.88 96.95
Automotive Diesel 78.79 82.17 83.12 84.3 84.37
Kerosene 59.31 62.16 63.04 64.11 64.1
Maximum pump prices (15th October 2016 to 14th November 2016)
PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU
Super Petrol 88.16 91.56 92.33 93.51 93.58
Automotive Diesel 78.74 82.12 83.07 84.25 84.32
Kerosene 55.87 58.71 59.6 60.67 60.62
42
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SGS Fuel Marking and Tracing Service - Kenya
Executive Summary for July - September 2018
1. Sampling and Testing
The tables below indicate the number of sites tested during the month of July - September
and the number of positive sites found.
Table 1: Summary of sites sampled and tested per province for Kerosene Marker
Sites Tested Sites Found Positive
Province Independent Company Total Independent Company
Central 35 79 114 2 0 1.75%
Coast 12 29 41 6 0 14.63%
Eastern 39 86 125 2 0 1.60%
Nairobi 27 61 88 18 0 20.45%
North Eastern 6 4 10 0 0 0.00%
Nyanza 39 25 64 2 1 4.69%
Rift Valley 80 124 204 4 0 1.96%
Western 41 38 79 2 0 2.53%
279 446 725 36 1 5.10%
Table 2: Summary of sites sampled and tested per province for Export Marker
Sites Tested Sites Found Positive
Province Independent Company Total Independent Company
Central 35 79 114 2 0 1.75%
Coast 12 29 41 4 0 9.76%
Eastern 39 86 125 0 0 10.00%
Nairobi 27 61 88 5 0 5.68%
North Eastern 6 4 10 0 0 0.00%
Nyanza 39 25 64 3 0 4.69%
Rift Valley 80 124 204 2 0 0.98%
Western 41 38 79 1 0 1.27%
279 446 725 17 0 2.34%
SGS Fuel Marking and Tracing Service - Kenya
43
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Crude Oil Analysis
Month -2016 Mean Exchange Rates (KES/US$) Crude Prices
August 101.80 44.87
September 101.50 45.04
October 101.20 49.30
November 101.83 45.26
December 102.45 52.26
17-Jan 103.99 53.59
17-Feb 103.55 54.35
17-Mar 102.97 50.90
17-Apr 103.11 52.16
17-May 103.21 49.89
17-Jun 103.27 48.86
17-Jul 103.74 49.56
17-Aug 103.28 48.45
17-Sep 103.12 52.95
17-Oct 103.35 54.92
17-Nov 103.24 62.71
17-Dec 103.28 64.32
18-Jan 102.4 69.08
18-Feb 101.9 64.15
18-Mar 101.3 63.91
18-Apr 63.22
18-May 68.43
18-Jun 65.81
18-Jul 65.54
18-Aug 66.94
CRUDE OIL TREND
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
99.50 100.00 100.50 101.00 101.50 102.00 102.50 103.00 103.50 104.00 104.50
Au
gu
st
Sep
tem
be
r
Oct
ob
er
No
vem
be
r
De
cem
be
r
17
-Ja
n
17
-Fe
b
17
-Ma
r
17
-Ap
r
17
-Ma
y
17
-Ju
n
17
-Ju
l
17
-Au
g
17
-Se
p
17
-Oct
17
-No
v
17
-De
c
18
-Ja
n
18
-Fe
b
18
-Ma
r
KSHS/CRUDE TREND
Mean Exchange Rates (KES/US$) Crude Prices
44
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Source; PIEA
Response Centre Location
Centre in-charge Container Equipment
Company Name
Response Team Leader
(St. John)
Inventory build and short fall
established
EquippingAvailable Branded
Name
1 Jomvu Total Kenya Francis Saha Paul Osiolo YES YES YES YES
2 Voi Petro Oil Saul Amuhaya Donald Makhala YES NO NO NO
3 Mtito Andei Oilibya George Aika Beatrice YES YES YES NO
4 Sultan Hamud National Oil Freda Mbogo Titus Nyamai YES YES YES YES
5 Kyumvi Engen Musyoki Ngumii Tobias Taiwan YES YES NO NO
6 Kangemi Vivo Energy Stephen Muchoki Judith YES YES YES YES
7 Kinungi Kenol Kobil James Mutisya John Karanja YES NO NO NO
8 Naivasha Galana Samuel Githinji Francis Kingori YES YES YES YES
9 Sachangwan Gulf Energy Job Arasa Kennedy Kiptur YES YES YES YES
10 Molo (Salgaa) Total (K) Ltd Francis Saha Kennedy Kibet YES YES YES YES
11 Kericho (Kaitui) Hass Petroleum Andronico Ngiela Davies YES NO NO NO
12 Kisumu (Awasi) Oryx Energies Edward Ruto Charles Okoko NO NO NO NO
13 Busia Trojan International Johnson Sunyai Ernest Omusula NO NO NO NO
14 Eldoret (Burnt Forest) KPC Immaculate Musangi Meshack NO NO NO NO
15 Webuye Vivo Energy Stephen Muchoki Philip Wekesa YES YES YES YES
16 Malaba Hashi Energy Damaris Mutua Kenoz YES NO NO NO