PI Q1 2012

1

In th

is Iss

ue

Board of DirectorsRida Elamir - Chairman (Libya Oil Kenya)

Francis Njogu - Vice Chairman (Gulf Energy)David Ohana - Member, (KenolKobil Ltd)

Sumayya Athmani - Member, (National Oil Corporation)Selest Kilinda - Member, (Kenya Pipeline Company)

Jimmy Mugerwa - Member (Kenya Shell)Alexis Vovk - Member (Total Kenya)

Issa Mohammed - Member (Hass Petroleum)Bimal Mukherjee - Member (Kenya Petroleum Refineries)

Solomon Osundwa - Member (Hashi Energy)Billow Kerrow - Member (Trojan International)Alnoor Jiwan - Member (Petro Oil Kenya Ltd)

George Kahira - Member (Galana Oil Kenya Ltd)Christian Callede - Member (Addax Kenya)

Gerald Van Aswegen - Member ( SGS Kenya Ltd)Patrick Obath - Individual MemberVarun Sharma - Individual Member

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 AfricaFourth Floor, Bruce HouseP.O. Box 8936-00200 NairobiPhone: 254-20-2249081, 313046, 313047Fax: 254-20-313048Email: [email protected]: www.petroleum.co.ke

Editorial & ProductionAlison & Davis CommunicationTel - 020-2190370, Email: [email protected]

AdvertisingAlison & Davis Communication&Acacia Media ServicesTel - 020-2243413 (M) 0720 227104Email: [email protected]

Design & LayoutRachael N. Musyimi

Editorial Board - Wanjiku Manyara, Joseph M. Panyako, Mathias Muindi, Kimemia Mugo

Contributors - Wanjiku Manyara, Kimemia Mugo, Mathias Muindi, Kennedy Senelwa, Timothy Simiyu

Editorial 2 From the General Manager

Industry News 4 New entrant into LPG vouches for partial filling of cylinders 4

Cover Story 15 Open Tender System transparent, economical 15

“Better to share a small cake than scramble and destroy it” – Pipeline Coordinator 15

Pictorial 18 Industry pictorial 18

Statistics 33

Petroleum Insight • 1st Quarter • January - March 2012

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18

EDITORIAL

22

General ManagerFrom the

New Year Greetings!

The year has started off positively with the stabilizing of the Kenya shilling and subsequent reduction of local fuel costs. Further, the Energy Regulatory

Commission published the long awaited draft petroleum regulations for comments. These will pave the way for effective and efficient enforcement and compliance to the Energy Act 2006. The Act will require review and ultimate amendment to match the new Energy Policy.

Globally, the risk of crude oil supply interruption and high fuel prices is looming following Iran’s threat to close the Strait of Hormuz during the intensified standoff between the West and Iran over the latter’s nuclear program.

The year portends a lot for the sector with looming proposals by Treasury to reintroduce Value Added Tax on Liquefied Petroleum Gas and change in tax status of Jet Fuel and Kerosene with VAT exempt from zero-rated. It is our hope that our rebuttal of this intent will facilitate appropriate amendments being made to the VAT Bill 2011. The Industry’s 2012/13 budget proposals have been submitted to Treasury and again, the suggestions for consideration therein focus on relevant instruments and strategies that should be implemented to trigger and spur growth and development in this sector whilst complimenting pertinent Vision 2030 aspirations.

The East Africa Liquefied Petroleum Gas (LPG) training jointly conducted by PIEA and the World LPG Association is an important event this quarter. We encourage staff from LP Gas operational and marketing departments, relevant government ministries, as well as legal & regulatory agencies to participate. Transfer of knowledge specifically for LPG operational, business and safety practices will be paramount during the workshop. This is the first collaboration series in positioning the regional LPG sector workforce strategically to tap into the expected exponential growth of this segment.

Consumer demand for energy and specifically petroleum, needs to be matched with efficient and effective supply chain infrastructure and systems for efficiency, affordability and reliability. Petroleum energy contributes the highest percentage of primary energy demand for East Africa’s modern economies and therefore remains the critical driver for the region’s economic and social goals. In this Issue, we have featured product procurement in East Africa including the current supply arrangements and proposals by authoritative industry representatives on how to make necessary improvements.

Wanjiku Manyara

General Manager

Globally, the risk of crude oil supply interruption and high fuel prices is looming following Iran’s threat to close the

Strait of Hormuz during the intensified standoff between the West and Iran over the latter’s nuclear program

333

YILMAZ Company Ltd Maasai Road off Mombasa Road Afriq Center No:02 P.O. Box 21040 - 00100 Nairobi, KenyaTel: +254 20 204 90 57, +254 204 204 90 56 Fax: +254 204 90 54 Email: [email protected]

Website: www.ycl.co.ke

Your Business Solution Partner

LPG Skid Sytems (LPG Cylinder Filling at Stations)

Petroleum Pumps & Dispensers

Submersble Pumps

Mobile Stations Automation

Systems

INDUSTRY NEWS

44

Design & specification for a tank gauging system

Maintenance programs

ENVIRONMENT & SOCIAL ASSESSMENT

Environment & Social Impact Assessment (ESIA) Studies

Environmental & social auditing

Environmental site assessment & remediation consulting

Waste management consulting

Energy conservation consulting

OCCUPATIONAL HEALTH

Safety & health auditing Developing programs for

occupational health exposure monitoring, laboratory health & safety, hearing conservation, personal protective equipment & chemical safety

SAFETY & FIRE PROTECTION

Incident investigation & root cause analysis

Fire risk assessments & firefighting equipment reliability

WE OFFER THE FOLLOWING SERVICES:

ENGINEERING DESIGN

Petroleum terminal & depot design (including tank farm & tankage, bottom& top loading systems, metering systems, piping & pumping systems & fire protection systems)

Product Blending Systems Service Station design, LPG facilities design Civil & structural engineer-

ing for petroleum facilities, Electrical design of

petroleum facilities

PROJECT MANAGEMENT

Preparation of tender documentation & analysis of tender bids

Procurement & installation Project Management/

construction supervisionTesting/Commissioning

AUTOMATION Design & specification for

full automation of metering systems.

Design & specification for a terminal automation systems

Hass Plaza, 4th Floor, Lower Hill Road, Upper Hill,

P. O. Box 16989 – 00620, Nairobi, Kenya

Telephone: (+254) 20 273 030810 273 3222

Fax: (+254) 20 273 0296E-mail: [email protected]

Website: www.kurrent.co.ke

Contractor health & safety management

Motor vehicle safety management

Permit-to-work system development

HSE TRAININGThe company provides a

variety of specialized training courses for the energy & manufacturing sector

In Kenya, the company is licensed by the NEMA (Ministry of Environment), DOSHS & DIT (Ministry of Labor) as a training services provider

OTHER SERVICES Asset valuation, cost

estimating, risk assessment, technical audit/inspections,drafting operating procedures, & feasibility studies on policy, legislation, market

Surveys & logistics Outsourcing staff to client

projects on a full-time basis









OCCUPATIONAL HEALTH







ENGINEERING DESIGN





PROJECT MANAGEMENT









Telephone: (+254) 20 273 030810 273 3222













COMPLETE ENERGY SOLUTIONS INCORPORATING THE FOLLOWING SERVICES:

ENGINEERING DESIGN Petroleum terminal & depot

design (including tank farm & tankage, bottom & top loading systems, metering systems, pip-ing & pumping systems & fire protection systems

Product Blending Systems

Service station design:

LPG facilities design

Civil & structural engineering for petroleum facilities,

Electrical design of petroleum facilities

PROJECT MANAGEMENT Preparation of tender docu-

mentation & analysis of tender bids

Procurement & installation

Project Management/ con-struction supervision

Testing/Commissioning

AUTOMATION Design & specification for full

automation of metering sys-tems.






Environmental site assessment & reme-diation consulting

Waste management

Energy conservation

OCCUPATIONAL HEALTH Safety & health auditing

Developing programs for occupational health exposure monitoring, laboratory health & safety, hearing conservation, personal protective equipment & chemi-cal safety

SAFETY & FIRE PROTECTION Incident investigation & root cause analy-

sis

Fire risk assessments & firefighting equip-ment reliability

Contractor health & safety man-agement

Motor vehicle safety manage-ment

Permit-to-work system develop-ment

HSE TRAINING The company provides a variety

of specialized training courses for the energy & manufacturing sector

In Kenya, the company is licensed by the NEMA (Ministry of Envi-ronment), DOSHS & DIT (Ministry of Labor) as a training services provider

OTHER SERVICES Asset valuation, cost estimating,

risk assessment, technical audit/inspections, drafting operating procedures, & feasibility studies on policy, legislation, market

Surveys & logistics

Outsourcing staff to client proj-ects on a full-time basis




Telephone: (+254) 20 273 0308, 10 273 3222

Fax: (+254) 20 273 0296

E-mail: [email protected]


Premier Gas, a newly incorporated Liquefied Petroleum Gas (LPG) trading

company has made a revolutionary proposition – to avail partially filled cylinders to low income earners.

Incorporated last year, the company is introducing – PIMA - a household LPG brand that will enable the lowest income segment of the population to buy affordable amounts of gas. According to the General Manager (GM), Premier Gas, Mr. Michael Momanyi, the company is targeting the “Base of the Pyramid” (BoP).

These are Kenyans who have been unable to transition from kerosene or charcoal use in their households due to the prohibitive cost of cylinders and the amount of money required to refill them. “We want to reach that segment of the low income population some of whom for a few spoonfuls of sugar or a dose of toothpaste to satisfy that particular need for the moment,” Mr. Momanyi says.

According to research undertaken by the company, shows that the energy spend for a house using LPG is lower than that for a household using charcoal and or kerosene in

New entrant into LPG vouches forpartial filling of cylinders

most urban areas in Kenya. “There are too many middlemen in the supply of charcoal to the urban areas and each makes profit on the commodity. The same case applies to kerosene in some far off rural areas. There is a place in Siaya where we found kerosene retailing at over KSh200 per litre,” Mr Momanyi adds.

The Premier Gas GM told Petroleum Insight in an interview that PIMA was born out of extensive studies on the access to and utilization of clean modern energy services amongst the disadvantaged in Kenya focusing specifically on LPG.

“Our revolutionary proposition, developed from the findings of this research, will enable the population at the base of the pyramid to access

liquefied petroleum gas. This will go a long way in improving their health, environmental and economic situation as well as have a positive impact on the gender within this population,” Mr Momanyi says.

The company undertakes to carry out extensive public awareness campaigns to educate their target market about safety issues surrounding LPG and its benefits compared to kerosene and biomass. This includes raising awareness on the harmful effects of burning biomass and kerosene in confined spaces. It will also seek to debunk various myths traditionally associated with LPG.

Mr Momanyi acknowledges the surrounding safety concerns which he says will be tackled by training, creating awareness and Premier Gas’ refilling technology. He makes it clear that partial filling is specifically for Premier Gas cylinders only.

According to him, this is a Kenyan solution to a Kenyan problem as the nation is lagging behind other African countries in LPG consumption. For instance, Africa’s per capita consumption is at 2kg, Senegal’s is at 12 kg while Kenya’s per capita consumption is 1kg per capita. Premier Gas marks out this as a major opportunity for LPG players.

In the past, the government has undertaken various initiatives in a bid to encourage growth LPG use. Mr. Momanyi says the strategy has not benefited low income earners due to hefty transition costs. He emphasizes that cost will be a key entry point for PIMA as Premier Gas will import and sell directly to consumers thus eliminating middlemen.

Looking forward, Premier Gas is confident that their LPG business will grow. “With the low penetration of LPG in Kenya, we foresee a bright future for the company,” Mr Momanyi says. The company will also offer hospitality services to other LPG companies at their LPG depot to be located in Nairobi’s Industrial Area. The facility will be equipped with LPG storage and cylinder filling facilities. “We are also developing other solutions aimed at the other segments of the population,” Mr Momanyi adds.

Mr Michael Momanyi, General Manager (GM), Premier Gas

We want to reach that segment of the low income population some of whom for a few spoonfuls of sugar

or a dose of toothpaste to satisfy that particular need for the moment

5

INDUSTRY NEWS

5









OCCUPATIONAL HEALTH







ENGINEERING DESIGN





PROJECT MANAGEMENT









Telephone: (+254) 20 273 030810 273 3222





















OCCUPATIONAL HEALTH







ENGINEERING DESIGN





PROJECT MANAGEMENT









Telephone: (+254) 20 273 030810 273 3222













COMPLETE ENERGY SOLUTIONS INCORPORATING THE FOLLOWING SERVICES:

ENGINEERING DESIGN Petroleum terminal & depot

design (including tank farm & tankage, bottom & top loading systems, metering systems, pip-ing & pumping systems & fire protection systems

Product Blending Systems

Service station design:

LPG facilities design

Civil & structural engineering for petroleum facilities,

Electrical design of petroleum facilities

PROJECT MANAGEMENT Preparation of tender docu-

mentation & analysis of tender bids

Procurement & installation

Project Management/ con-struction supervision

Testing/Commissioning

AUTOMATION Design & specification for full

automation of metering sys-tems.






Environmental site assessment & reme-diation consulting

Waste management

Energy conservation

OCCUPATIONAL HEALTH Safety & health auditing

Developing programs for occupational health exposure monitoring, laboratory health & safety, hearing conservation, personal protective equipment & chemi-cal safety

SAFETY & FIRE PROTECTION Incident investigation & root cause analy-

sis

Fire risk assessments & firefighting equip-ment reliability

Contractor health & safety man-agement

Motor vehicle safety manage-ment

Permit-to-work system develop-ment

HSE TRAINING The company provides a variety

of specialized training courses for the energy & manufacturing sector

In Kenya, the company is licensed by the NEMA (Ministry of Envi-ronment), DOSHS & DIT (Ministry of Labor) as a training services provider

OTHER SERVICES Asset valuation, cost estimating,

risk assessment, technical audit/inspections, drafting operating procedures, & feasibility studies on policy, legislation, market

Surveys & logistics

Outsourcing staff to client proj-ects on a full-time basis




Telephone: (+254) 20 273 0308, 10 273 3222

Fax: (+254) 20 273 0296



6

INDUSTRY NEWS

66

newsIN

newsIN brief

• PIEAandtheWorldLiquefiedPetroleumGasAssociation(WLPGA)willrunanEastAfricaLiquefiedPetroleumGasTraining on 21 – 23 March, 2012 at the Hotel Intercontinental, Nairobi. The training is an outcome of the inaugural East Africa WLPGA Summit hosted by Kenya last July. The training is one of a series planned for the region aimed at building adequate capacity for this fast growing business segment.

• TullowOilwillfinallyproceedwiththefarmoutdealtoCNOOCandTotalfollowingapprovalofthetransactionbythe Government of Uganda. Subsequently, development of Uganda’s discovery can now take off in earnest placing Uganda in the league oil producers and exporters. It is expected that the first substantial oil flows will materialize in 2015/16.

• Ugandawillsetupanationaloilcompanyaccordingtotheprovisionsunderthecountry’sExploration,Developmentand Production Bill aimed at regulating the budding oil industry. The bill, which is one of three new bills, will also establish an independent authority to reduce government’s direct participation in the petroleum sector business.

• PresidentKibakiisexpectedtopresideoverthegroundbreakingceremonyfortheconstructionoftheLamuPortinearly March. This will come after the signing of the Memorandum of Understanding (MOU) in February 2012 between South Sudan and Kenya to develop a pipeline from South Sudan to Lamu. This project is expected to revolution-ize the region’s oil industry. The project will not only open up Kenya’s second transport and economic corridor and indeed fast-track it now that South Sudan would want the 2000 kilometer pipeline up and running within 18 months upon commencement; but it will also be the gateway to the much needed key infrastructure developments under the Lamu Port South Sudan and Ethiopia Corridor Project.

• KenyathroughtheMinistryofEnergyhascommissionedapre-feasibilitystudytoevaluatethecountry’scurrentcapability to undertake nuclear energy production as preparations are made to set up plants to begin production in the next ten years .The study which will look at all related issues ranging from legal and regulatory requirements, skills and manpower as well as the market for generated power. The pre-feasibility study is expected to pave way for actual construction of nuclear plants with the first one scheduled for commissioning in 2022.The completion of the nuclear electricity project will see the country generating up to 19 percent of its energy from nuclear sources. Currently, the Kenya’s electricity mix is made up of hydro which accounts for the largest share at 49 percent, thermal and geothermal.

• GeneralElectricisplanningtosetupa100megawatt(MW)windpowerplantinNgongwhichisexpectedtobeinoperation in two years, a time when the 300MW Lake Turkana power project is also expected to be completed. These projects are expected to significantly improve the country’s power demand which has been growing steadily at 5.1% since 2006.

Contact:Mathias Muindi4th Floor, Bruce HouseTel : 254 20 2249081 / 313046Email : [email protected]

WLPGA-PIEA EAST AFRICA

Where:Intercontinental Hotel, Nairobi, Kenya

When:21st – 23rd March 2012

Charges: US$ 1,300 all inclusive

BOOK NOW

LPG WORKSHOP TRAININGThe three day programme has been designed for staff from LP Gas opera-tional and Marketing departments, relevant Government Ministries, and Legal & Regulatory Agencies from East African Countries

Three key areas on LP Gas business: LP Gas product knowledge LP Gas bulk storage facilities and bulk transfers LP Gas cylinder filling, storage and distribution

DIT Registration: TRN/414PIEA through the training arm School of Petroleum Studies is DIT registered. Participants who are DIT contributors are eligible for reimbursement of their training costs.

7

INDUSTRY NEWS

7

KenyaPremier Agencies of Kenya Ltd.Westlands Plaza-next to The Mall

P. O. Box 44432-00100 Nairobi, KenyaTel: 4440093/4 Fax: 4441820


UgandaPremier Agencies of Uganda Ltd.2nd Floor, Raja Chambers 3rd Parliament AvenueP. O. Box 1411 Kampala, UgandaTel: 256 41 343387 / 343395 Fax: 256 41 341608E-mail: [email protected]

TanzaniaPremier Agencies of Tanzania Ltd.

Plot No. 4, Bandari Road Kurasani AreaP. O. Box 78666 Dar-es-Salaam, Tanzania

Tel: 255 22 2124397/8 Fax: 255 22 2124395E-mail: [email protected]

Leaders in Petroleum Equipment

Global Vista SeriesModel 3390 6 Hoses 3 ProductsModel 3399 4 Hoses 2 Products

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KenyaPremier Agencies of Kenya Ltd

No.18 Kabarsiran Avenue, WestlandsP. O. Box 44432-00100 Nairobi, Kenya

Tel: 4450544/ 0722 512979 Fax: 4456147 E-mail: [email protected]

888

INDUSTRY NEWS

8

Hashi Energy marks 20 yrs, ventures into LPG

Hashi Energy celebrated its 20 year anniversary in November last year and unveiled a new LPG brand during the commemorative event held at the

Intercontinental hotel, Nairobi.On hand to preside over the anniversary celebrations was

Assistant Minister for Electricity and Renewable Energy, Eng Mohamed Mahamud, accompanied by leading personalities in the oil industry, among other guests.

According to Mr Solomon Osundwa, the Commercial Director, Hashi Energy, the company has come a long way within 20 years. Hashi Energy was incorporated in 1991 as a privately owned company whose core business is importation, distribution and marketing of petroleum products.

For about five years, before 1991, the founders - Mr and Mrs Hashi, with assistance from Ms Catherine Kahihia, who works with the company to date, used to trade informally ferrying kerosene in trucks from Mombasa to various parts inland. Thus, the company is one of the oldest indigenous oil marketing companies in the region.

Expansion has been consistent, starting with a contract to distribute kerosene for Caltex in Eastern Congo, Rwanda, Burundi and Sudan. These were areas where the multinational could not reach. The company successfully executed the contract over several years. In 1996, Hashi Energy incorporated a subsidiary in Uganda. Mr Osundwa attributes continued growth to the company’s business to business (commercial) portfolio.

In 2007, Hashi won the Minicom Rwanda fuelling contract for that year and 2009. In 2008, the company was also awarded the Electrogaz Rwanda fueling contract of 40,000 m3.

In Nairobi, the company acquired a terminal from Mid Oil Africa in 2008, acquired the former Agip Terminal in Mombasa from Shell in 2008, won the tender to supply West Nile Rural Electrification Company in Uganda in 2009 and operationalized Kenya’s second largest LPG facility in 2010. Last year, as the company clocked 20 years, and unveiled a new LPG brand, it also achieved ISO 9001 certification.

Today, the company supplies over 240 million litres of petroleum products to the region, annually. It has a capacity to supply 360 million litres per year, making it the market leader in export of petroleum products from Kenya to the region.

“We are continuously seeking to position the company as a leading player in the Africa down and mid-stream market. Our strategy focuses on several key target market segments. We are taking petroleum products closer to the people and investing in storage facilities within the region. We are increasing our volumes and diversifying our product range,” Mr Osundwa says.

The venture into LPG started in 2010 with initial focus on institutions such as schools and hotels in Mombasa. Introduction of cylinders started in phases last year. In April, Hashi commenced cylinder distribution in the coast region, distributing in Nairobi in October and culminating in the November launch.

Some of the attributes that has sustained Hashi Energy include a professional and focused management, ability to make quick decision making, excellent customer service and excellent partnership with banks and suppliers. The company upholds creativity, innovation, integrity, professionalism and teamwork amongst staff.

But like other indigenous oil marketers, the company has faced some challenges. Mr Osundwa points at the drop in international prices in 2008, the 2009 economic crunch, the storage constraints in Nairobi and Mombasa and high cost of financing as some of the bottlenecks.

Looking forward, Hashi sees an opportunity in piped LPG in the region. According to Mr Osundwa, the company is set to grow its market share through innovative strategies. For instance, the company is focusing on how to make piped LPG available to households as is common in developed markets. “By the end of next year we shall have developed our first piped gas project in Kenya. We also intend to keep growing in Kenya and in retail, Lubes and commercial accounts while retaining and growing our traditional export market,” Mr Osundwa adds.

L-R, Assistant Minister for Electricity and Renewable Energy, Eng Mohammed Mahamud, Hashi Energy, CEO, Mr Hashi, Mrs Hashi and Export Coordinator, Catherine Kahihia and Executive Director, Edgar Omotto (partly hidden) are assisted by a Hotel Intercontinental chef to cut a cake in celebration of Hashi Energy’s 20th Anniversary celebrations.

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INDUSTRY NEWS

12121212

National Oil crowned Africa’s best

as coporate. “It is the year when the Government awarded us license to undertake oil and gas exploration in block 14T within the tertiary rift making the first time in history that the Company has signed Petroleum sharing contrast (PSC) to undertake its own gas and oil exploration activities,” she notice. The fact that they managed to add additional 15 retail stations bringing the tally to 72 is also an enough reason to remember that financial year.

Athmani continues that it has been a journey for them to get recognition for the Corporate doesn’t have production of its own but in 2010 the Corporate rolled out unique retail expansion on smaller and cost effective stations.

“These stations are community oriented serving smaller towns and markets. The objective is to ensure that every Kenyan can easily access National Oil products from whichever part of the country they may be in,” she says. It is through this model when they are looking forward to partner with local communities in station ownership and Management.

According to Athmani direct negotiation has been one of the main points the petroleum Africa Magazine considers when judging performance this is due to the perceived nature of the country as an oil and gas exploration frontier.

However she says that with the growing interest in the county’s acreage, the Ministry of energy with the advice of the National Fossil Fuels Advisory Committee, which is an inter-ministerial committee charged with advising the Minister for energy on upstream matters, has been evaluating the possibility of Kenya adopting license rounds.

For now the company project a strong growth for the financial year 2011/12 on the back of rapid expansion of the retail network coupled with recent roll out of new products including their own brand of LPG lubricants as well as the National Oil fuel card, all of which the market received very positively. “As observed earlier, infrastructure development is a key area of focus for us moving forward, and similarly, increased direct participation in upstream through our work program on Block 14T,”she said.

However while doing all this we shall also continue our retail network expansion. We expect to be a key player in the importation of petroleum in the country by actively participating in the monthly industry open tenders as well as through importation of our quota allocation,” she observed. According to Athman’s point of view the Company has nowhere to go but up.

National Oil Company of Kenya (NOCK) was established three decades ago to oversee the country’s upstream industry and has been in operation for 26 years. Over the years the Company’s mandate has expanded to include downstream activities and it is here that the country has shone through as NOC to be reckoned with.

National Oil Company of Kenya (NOCK) was named Africa National Oil Company

of the year has been received in 2011 by Petroleum Africa Magazine.

Speaking with Petroleum Insight National Oil Corporation of Kenya (NOCK) Managing Director Sumayya Athmani said that 2010/11 has been one of the most exciting years in the corporation.

“Despite the challenges experienced with high international prices as well as petroleum distribution infrastructure constraints facing the country our sales grew by 46 per cent compared to the previous year,” said Athmani.

Athmani added that the year will be recalled because of the significant steps they have made

National Oil Managing Director, Mrs Sumayya-Hassan Athmani

national oil company

Mr Momar Nguer has been appointed senior vice-president, Africa-Middle East, Total sup-ply and Marketing.

Mr Nguer was appointed to the new position on December 15, 2012 to succeed Mr Alain Champeaux, who left his operational responsibilities after a 35-year career in the Total Group. The new senior vice-president for the region started his career in 1982 in Hewlett Packard’s France finance department.

He joined Total in 1984, serving in various positions. After a stint at Total Africa’s headquar-ters, he was named vice president, marketing, at Total Senegal in 1985. Returning to Paris headquarters in 1991, he was appointed vice president, retail network and consumers, Total Africa. In 1995, Mr Nguer became chief executive officer of marketing subsidiary, Total Cameroon and was subsequently named chief executive officer of marketing subsidiary Total Kenya in 1997.

Appointment

12

1313131313

COVER STORY

The East African region is a net importer of petroleum products and is therefore vulnerable to the dynamics of supply in the international

markets. Petroleum Insight spoke to key personalities in

the region’s supply system and obtained insights on why the region is in all-out battle to enhance efficiency and bring down prices. Kenya was ahead of the other countries to introduce the Open Tender System (OTS). Tanzania and Uganda has followed suit.

Speaking to Petroleum Insight, the chairman, Supply Coordination Committee and Shell’s East Africa Sales and Operations Manager, Mr Jimmy Mugerwa says given the options, a bulk procurement system such as the OTS goes a long way to ease supply constraints.

He notes that the OTS is organized in a way that it has well stipulated rules and regulations that are fully implemented and adhered to by all its signatories. It allows for bidding freely and fairly. Whoever then gives the best prices wins the tender to import oil and petroleum products on behalf of the rest.

Focus on petroleum products procurement into EA

The rules and regulations are such that they enhance effective and efficient coordination and supply of oil and petroleum products into Kenya. For example, tender nominations have to be done within certain times. Once nominated, a member has 24 hours within which he can withdraw, the system is punitive to both the suppliers and buyers, members have 12 days to pay for the products once they arrive. The OTS document is dully signed by all players in the industry. With Uganda and Tanzania following suite, there is a possibility of other countries in the region emulating.

The supply and coordination committee was established in 1978 with the commissioning of the Kenya pipeline. Its main role was to facilitate co-ordination of marketers’ requirements along the pipeline.

As the current Chairman puts it, the committee started off with all the seven companies trading in Kenya but with the exponential growth of the market, other members were incorporated including the “independents”.

The main mandate of the committee is to oversee the smooth co-ordination of supply of oil and petroleum products in the common user facilities, for instance KPRL and Kenya Pipeline Company to the various oil marketing companies in Kenya. It also articulates the position of the industry and shapes industry standards.

“The supply co-ordination committee is structured in a way that it has an established secretariat- a team of people; under the pipeline coordinator based in Nairobi’s Upper Hill area and they implement directives on a daily basis,” says Mr. Mugerwa.

Mr Mugerwa says the main challenge facing the region is that demand for petroleum products in has grown tremendously in the last decade yet the infrastructural facilities remain the same. “The storage facilities have not changed but the demand is always going up which only translates into constrained supply of oil and petroleum products,” he says.

Moreover, there are also other challenges like equity among players and fair competition practices. In an effort to overcome these challenges, the committee has put in place mechanisms to identify the real problems in terms of distribution. Indeed, a position paper was published last year to put the industry into context.

The supply co-ordination committee is structured in a way that it has an established

secretariat- a team of people; under the pipeline coordinator based in Nairobi’s Upper Hill area and they implement directives on a

daily basis

Mr Jimmy Mugerwa, Chairman, Supply Coordination Committee

13

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COVER STORY

Crude processing at KPRLCrude oil imports are received at

Kenya Pipeline and Refineries Limited (KPRL) in parcels of

approximately 80,000 tons.Crude is receiving and discharge

is through Kipevu Oil Terminal Jetty into refinery tanks located at both Kipevu and Changamwe. Once received, crude is allowed to settle for thirty six (36) hours in preparation for processing and crude intake is regulated dependent on production requirements.

The Mombasa refinery has two process trains each capable of running independently and produces LPG, Petrol (regular and premium), Illuminating Kerosene and Jet fuel, Diesel, and heavy fuel oil through a separation process (distillation) and in some cases chemical processes (catalytic conversion).

Bitumen is also produced when bitumen bearing crudes are availed. The current operation model is toll processing where Oil Marketing Companies (OMCs) own the crude and products. Each marketing company advises KPRL on desired product pattern (programme) which when put together for all participating OMCs guide the production pattern. Finished products are stored in the refinery

For each OMC, KPRL maintains an account showing the transactions (deliveries, receipts, programmes etc). “KPRL ensures that each OMC receives their product through good and efficient communication and reconciliation of accounts,” Mr Mruttu says.

But KPRL is limited to processing 1.6 million metric tons per annum which is less than 50% of the name plate capacity. This means that the refinery has to operate at reduced throughput to minimize outages whilst keeping the plant steady. The refinery has consistently refined 1.6 million metric tons per annum. Refinery fuel and loss which was at the level of 5.8% has been reduced to 4.8% level.

Once KPRL is converted to merchant mode, it will select most optimum crude blend for the refinery. KPRL had an option to wait until upgrading to convert but in the intervening period, conversion will pave the way for making investment for operational and performance improvements. Murban crude oil which is predominantly processed in the refinery may be replaced by alternative crude blends to enhance refinery profitability. KPRL will source crude through the OTS. OMCs will purchase the products derived from processing 1.6 million metric tons per annum at a price determined by ERC.

“Discussions with the authorities (on conversion) are at advanced stage and required legal notices are expected shortly. The date for switching to merchant mode will be announced once the legal notices have been published,” the KPRL GM says.

Kenya Pipeline Company (KPC) has announced plans to replace the existing Nairobi to Mombasa pipeline.

The firm has placed an international tender calling for a consultant to carry out detailed engineering design, prepare tender documents and supervise implementation of the project.

The existing pipeline is approximately 450 km long transverses from Mombasa to Nairobi and has been in operation since 1978. The pipeline has eight pumping stations each with two pumps rated at 440m3/hr.

According to KPC’s Managing Director, Mr. Selest Kilinda, the new pipeline shall meet the projected demand up to year 2044.

“The consultant will be expected to design a new replacement pipeline optimizing the use of the existing pipeline facilities to meet the growing demand,” said Mr. Kilinda.

tanks awaiting dispatch to terminals nominated by OMCs.

The products are evacuated from the refinery to the main pipeline for onward distribution to Nairobi, Western Kenya, local depots (Shimanzi and Changamwe), to the power companies as well as back loading of barges and truck loading.

According to KPRL General Manager, Mr John Mruttu, with the OTS, the crude delivery pattern is defined easing refinery operations and supply to OMCs. However, there are supply issues during power interruptions, and the piracy threat along the Somali coast has sometimes resulted in delayed arrival of some crude parcels as ships take a longer route to avoid the area.

KPC to Replace Nairobi – Mombasa Pipeline

Petroleum accounts for 21 percent of the country’s primary energy source. The demand for petroleum has been growing steadily at above 10 per annum. Some of the petroleum product is used in electricity generation in thermal plants.

“The consultant will also carry out a technical and financial evaluation to determine the optimal pipe size considering the different demand scenarios,” said Mr. Kilinda.

The pipeline will also be redesigned and the existing fire fighting system upgraded to ensure effectiveness for intended purpose incorporating remote controls for swift, efficient and safe operations as well as rehabilitation of worn out facilities.

In 2008, KPC commissioned PS2-Taru, PS4-Manayani, PS6-Makindu and PS8-Konza in order to improve on the initial installed capacity of 440 M³/hr to the ultimate capacity of 880 M³/H between Mombasa and Nairobi, a demand that will be needed in year 2030.

KPC is currently constructing a parallel pipeline from Nairobi to Eldoret in order to enhance the system flow rate by 378M3/hr.

The Capacity Enhancement Project is strategic not only for the long term financial stability of the company but also for ensuring reliable and adequate supply of petroleum products to Western Kenya and the land locked countries. - Kennedy Senelwa

KPRL CEO Mr Bimal Mukherjee

15

COVER STORY

15

Open Tender System transparent, economical Oil marketers in East Africa concur that the

Open Tender System (OTS) so far stands out as an effective procurement system for

petroleum products into the region.Speaking during an interview with the Petroleum

Insight Magazine, the petroleum Supply Coordination Committee Chairman who doubles up as Shell, Sales and Operations Manager and Kenya Country Chair, Mr. Jimmy Mugerwa echoed Engen’s Managing Director (MD), Mr. Powell Maimba’s views on the OTS.

Mr Maimba, in a separate interview said that the concept of getting the lowest bidder to supply products on behalf of other players enhance competition among oil marketers and build on economies of scale.

“All registered companies by Energy Regulatory Commission have a chance to import petroleum products through the OTS. Industry players are able to analyze global prices and compete on premium, thus we end up with the best prices in Kenya. In fact, Uganda has recently adopted the OTS,” says the Engen Kenya, MD.

As a result, prices in Kenya are highly competitive compared to other countries in the region. Indeed, according to the Engen MD, the cost of landed product in Mombasa is lowest than any other port along Africa’s Indian Ocean Coast.

“If we were to compare the system of procurement of petroleum products in South Africa with the open tender system, Kenya’s open tender system is outstanding,” he says.

According to Mr Maimba, South Africa does not have an OTS. The country uses Basic Fuel Pricing (BFP) system which

is an average of prices as quoted by Platts or Argus incorporating premium. The South Africa’s ministry of energy is charged with enforcement. In countries like Malawi, the National oil company imports on behalf of oil marketers. The government floats annual tenders so prices are locked throughout the year unlike in Kenya where prices change on a monthly basis.

In Eastern Africa, Mr. Maimba points out that inland transportation of petroleum products is the greater challenge due to infrastructural constraints. According to him, the cheapest means of transportation for

petroleum products is sea, pipeline, railway, road and then air, in that order. Landlocked countries are therefore disadvantaged. Worse, not many countries have pipelines in the region. Those with them have capacity constraints.

For instance, 99 percent and 60 percent of fuel in Malawi and Uganda respectively, is transported by road. This is because the region’s countries also have very poor railway infrastructure. As a result, it is hard to meet the market demand consistently due to transportation hitches.

In Kenya, the biggest market for fuel and other petroleum products is Nairobi with pipeline and road transportation as the most preferred. What does this translate to? The high transportation costs are directly transferred to the consumers as higher pump prices. Moreover, road as a means of transport for petroleum has safety concerns. The trucks have to be driven through tough terrains and escarpments exposing them to accidents. Mr Maimba observes that increased investment in infrastructural expansion is inevitable in the region.

“Better to share a small cake than scramble and destroy it” – Pipeline Coordinator

The Kenya Pipeline Coordinator, also known as the Oil Industry Secretariat is a crucial reference point for oil marketers in the East African region. The Pipeline Coordinator has mediated between Oil Marketing Companies (OMCs) and other players such as government entities since the 1970s in a highly competitive and challenging market environment. Petroleum Insight spoke to Mr Joel Mburu, Pipeline Coordinator for the last six years.

Exerpts:

Petroleum Insight (PI): Briefly go over the role of the Pipeline Coordinator and the Oil Industry Secretariat.

Mr Joel Mburu, Pipeline Coordinator (PC): We offer services to OMCs in as many issues that require sharing of joint facilities and services. The secretariat is the reference point on issues of product allocation and access from Kenya Petroleum Refineries Limited (KPRL) and in the Kenya Pipeline Company (KPC) system. We also coordinate joint product tenders on a monthly basis for both local and transit supply. In addition, the secretariat closely liaises with KPC, raising alarms where prolonged stock gaps are envisaged and offer advice on how to narrow them. We also gather and disseminate relevant information.

PI: What are some of the issues that arise while sharing joint facilities?

PC: For instance, crude for various oil marketers is processed together at KPRL. We are involved in determining what amount of various products each marketer will get. Marketers are not always assured of getting 100 percent of their ordered products due to various constraints at KPRL. The same applies along the pipeline. We therefore use different parameters such as market share and the information we get from KPC every morning.

PI: What is your jurisdiction?

PC: As given by the Supply Coordination Committee.

PI: What is your take on the Open Tender System (OTS)? How does it compare with direct imports?

PC: The OTS is more structured and coordinated. It offers secu-rity of supply as there are clear delivery dates and penalties for failure. The system is cheaper in the sense that they got priority

Engen MD, Mr Powell Maimba

16

COVER STORY

Demurrage drops from 50 to 4 days as Tanzania adopts new system Tanzania has recently adopted a Bulk Procurement system similar to Kenya and Uganda’s Open Tender System (OTS). Petroleum Insight interviewed Mr Godfrey Fernandes, the Chief Executive (CE), Gapco Tanzania on how the system is working.

Petroleum Insight (PI):

How far are plans to adopt an Open Tender System (OTS) similar to Kenya’s in Tanzania? How is it going? What was the experience before?

The Chief Executive (CE): It is no longer at the plans stage. We have, in fact awarded two tenders to date i.e. Jan - Feb 2012 and March - April 2012. Supplies for the first tender period are underway at the moment. We have seen two very visible changes as of today:a) Demurrage has come down from

a peak of 50 days to just 4 days. This is probably due to the orderly sequencing of incoming vessels due to the fact that there is now only a single supplier

b) All imports are now through a single point of customs. I am sure this will benefit the revenue authorities.

PI: What are some of the other antici-pated changes?

CE: With the commissioning of the SPM we hope to see pricing benefits at least on diesel.

PI: Who are the main players in Tan-zania’s new system? What are their various roles?

CE: In the new bulk procurement envi-ronment, all imports are coordinated by the Petroleum Importation Co-ordinator Limited (PICL), which is a company guaranteed by the EWURA Licenced Oil Marketing Companies who are required to be members of this company. The PICL which is formed on the strength of a government gazette notification is managed by a board of six directors whose tenure and composition is also defined in the government’s rules. The gazette also provides for the formation of a bulk procurement technical com-mittee which reports to the minister. The committee oversees the activities of the PICL.

PI: What challenges are oil marketers in Tanzania facing along the supply chain?

CE: We are now faced with the chal-lenge of setting up the processes in PICL. Currently, we are tackling the issue of vessel discharge losses which are being apportioned to all the buyers.

Another issue is that of ensuring supply of product to oil marketing companies in line with their orders.

PI: How can these challenges be ad-dressed?

CE: By clearly defining the various processes

PI: What rules and regulations govern procuring petroleum products into Tan-zania? How are they enforced?

CE: The Petroleum Act (Cap 392) pro-vides for the Petroleum (Bulk Procure-ment) Regulations, 2011 (made under section 33 (2)). These are enforced thru the PICL.

PI: Which procurement system would you recommend for East African coun-tries?

CE: Given the fact that EAC Countries are dependent on import of petroleum products, the bulk procurement of prod-ucts can and should be resorted to if a Cost Benefit Analysis (considering all the operational issues) favours a reduced foreign exchange bill.

berthing and tank space thus lower demurrage. The OTS imports for products also offer great economies of scale.

PI: What can East African countries learn from each other? And what can the region learn from other more developed countries in procuring petroleum products into the region? Already Uganda has joined the Kenya import supply chain. Tanzania has started an OTS whose full details I am yet to get. Storage space for strategic stocks are limiting compared to developed countries thus volatility of prices felt almost immediately in the region. Could term supply contracts for a period save us?

PI: What challenges does the Pipeline Coordinator under-take on a day-to-day basis?

PC: Being a referee in a really competitive environment. We have to ensure fairness in the use of common-user facilities which are constrained. Given the chance, competitors can use the common facilities at the disadvantage of each other. We have lobbied and will continue to advocate opera-tional modalities that will enhance optimum and fair use of common-user facilities.

PI: What are some of your most memorable experiences as Pipeline Coordinator?

PC: When OMCs saw the need to share the limited shared KPC facility fairly and abide by established rules for shar-

ing. This made imports predictable. Before 2004, an OMC could import product and keep it for prolonged durations in the KPC system. This caused problems for other OMCs along the supply chain. The minister for energy intervened and shared use has grown in effectiveness since that time.

The other period I can recall when we spent several sleepless nights is during the change in tax regime to prepayment of custom duty. The Kenya Revenue Authority (KRA) initially approached the issue with a heavy hand. They were unwilling to engage with industry players and moving petroleum products both for local and transit almost ground to a complete halt. Interventions had to come from the topmost echelons of government in Kenya and Uganda.PI: What is your advice to oil industry players?

PC: It would help to agree on how best to utilize the limited shared facilities for the benefit of all. Someone once told me” if given a cake to share, its best to agree on how to cut it amongst yourselves rather than all scramble for a piece largely succeeding in having most of it on the floor in crumbs”

PI: How do you perceive the future of the oil industry in the East African region?

PC: Economic growth calls for a look into our supply chain criti-cally to ensure we keep pace with it. The region is becoming a critical entry point for central Africa and this is an opportunity.

Mr Godfrey Fernandes, the Chief Executive

17

COVER STORY

17

Stockouts and delays reduce as Uganda joins OTS

Excerpts:

PI: Thank you for granting Petroleum Insight this inter-view. Where does APMP draw its membership from?

APMP: The membership of APMP is open to corporate entities that are;• Inpossessionofvalidpetroleumdistributorship

License• IncorporatedintheRepublicofUganda.• HaveoperatedinUgandauninterruptedforatleast

2 years• Conformtolaws,regulationsregardingtheiropera-

tion in Uganda.• Therearethreecategoriesofmembership,Perma-

nent, Associate Members and Observers.

PI: What are APMP’s objectives?

APMP:• PromoteandsharebestpracticesinareaofHealth,

Safety and Environments.• Establishandmaintainstrongandsustainable

relations with Government, Administrative, Civil and Professional authorities.

• Managepublicrelations,imageandreputationis-sues on behalf of the Association.

• CooperationwithGovernmentAgenciesthroughsharing of experience and knowledge of the Indus-try.

• DefendingfinancialinterestcommontothePetro-leum Industry and safeguarding consumer interests.

Briefly go over the history and background of the Asso-ciation of Petroleum Marketing Professionals (APMP).

PI: How is the association or its members involved in petroleum products procurement into Uganda?

The Association is represented and Chairs the Supply Coordination Committee which advises Government on Petroleum Supply issues.PI: Briefly describe the process of procuring petroleum products into Uganda.

Until recently, each company individually arranged supplies, usually with assistance of sister companies

in Kenya or abroad. With advent of OTS, Uganda companies are procuring jointly under OTS with their sister or partner companies in Kenya.

PI: What prompted Uganda to introduce an Open Tender System (OTS) similar to Kenya’s? When was this done?

In the past Ugandan companies have struggled to get sufficient ullage to import directly into Kipevu Oil Terminal. This resulted in very frequent long delays in ship discharge leading to high demurrage and often stock outs. Therefore when the Kenya Government offered opportunity for Uganda companies to join OTS, the opportunity was taken and has since resolved some of these challenges.

PI: How is the OTS working for the oil marketers, the Uganda govern-ment and other players?

So far, so good. The procurement is much more organized, ullage availability is much more predictable and demurrage amounts have drastically reduced.

PI: What are some of the notable changes since Uganda started using the OTS?

Lower demurrage & fewer stock outs

PI: What challenges are Ugandan oil marketers facing along the sup-ply chain?

Being landlocked, the high cost of logistics and the need to operate with large stocks in the transit system are probably the biggest challenges.

PI: How can these challenges be addressed?

More discussion and coordination is needed with governments and their agencies. And also, more investment in for instance, port import facilities, the pipeline system etc.

PI: What rules and regulations govern procuring petroleum products into Uganda? Are they enforced?

The Petroleum Supply Act enacted some time back is only recently beginning to be enforced. Process is still a long way but for a start all Companies have applied for licensing under this Act for the first time.

PI: Which procurement system would you recommend for East Afri-can countries?

With limited import facilities as it is now, joint procurement such as the present OTS system remains the best. Unfortunately, it limits competition and also puts the entire economy at the risk of single supplier. So in future, if facilities were adequate, then allowing more importers to source and arrange separately would facilitate more competition and better security of supplies.

Oil marketing companies in Uganda have until recently been arranging petroleum product supplies individually. With the country now on board the Open Tender System (OTS), Petroleum Insight (PI) spoke to Mr Ivan Kyayonka, Chairman of the Association of Petroleum Marketing Professionals (APMP), Uganda.

Mr Ivan Kyayonka, Chairman of the Association of Petroleum Marketing Professionals (APMP), Uganda

The procurement is much more organized, ullage availability is much more predictable and demurrage

amounts have drastically reduced.

INDUSTRY PICTORIAL

National Oil Managing Director Ms. Sumayya Hassan-Athmani awards David Mogikoyo, a final year Architecture student at the University of Nairobi for emerging the best in a National Oil inter-university design competition.

Assistant Minister for Electricity and Renewable Energy, Eng Mohammed Mahamud presides over Hashi Energy’s 20 years anniversary celebrations in November last year

A customer receives a PIMA gas cylinder from a Premier Gas Company dealer in Nairobi. The new LPG brand was launched this year.

Cutting of cake by some of Norken founding members during the 10th Year anniversary dinner on 24th Nov 2011 at the Sarova Panafric Hotel Nairobi

Territory Manager- Anthony Muraya, Sales and Marketing Manager- Millicent Onyonyi, Longest serving dealer Madan Aggarwal and Managing director- Rida Elamir

18

Weights and Measures, Julius Nyamu presents on the organization’s behalf during the 4th Quarter, 2011 PIEA public forum. Seated behind are L – R, Mr Stephen Mallowah, Executive Director, Anti-Counterfeit Agency, Eng Kaburu Mwirichia, Director-General, ERC and Mr Moses Ngonga of Telemetric Venture.

19

TRAINING PICTORIAL

Participants of the first hazardous cargo drivers training in a session

19

Participants of the Emergency Responders training in Kinungi pose for a group photo

Participants of Total Kenya’s fleet owners training held last December at Total Training Centre in Hurlingham in a group photo

Oil industry stakeholders listen keenly to proceedings during 4th Quarter 2011 public forum organised by PIEA

Participants of Petroleum Stocks Management Training in a group photo together with PIEA resource persons

An Emergency Responders Training Participant receives a certificate from a St. John’s and National Oil’s representative

20

HERP Volunteers’ training commence

The Highway Emergency Response Plan (HERP) has entered a new

implementation stage with the launch of training for volunteers along the transport corridor. The training is aimed at build-ing capacity of the emergency response teams as a curtain raiser for full operationalization of the HERP. The first phase entailed training of emergency response centre team leaders from each lo-cation drawn from the oil industry as well as St. John Ambulance. The successful training was held in August 2011.

the HERP partners to establish what is missing. Relevant contacts are also obtained for maintenance at the response centre.

To ensure proper coordination and liaison with the petroleum industry, each of the response centres has been assigned to a particular petroleum com-pany. The centers, majority of which have contain-ers owned and operated by St. John are the focal points for emergency response, where all materi-als, equipments and useful contacts to handle a petroleum related incident for a particular area are found. The idea behind this is to make petroleum related response safe and prompt at each location countrywide.

HERP is an initiative of the Petroleum Institute of East Africa (PIEA). Following its publishing and launch, PIEA had to look for a like-minded partner with a wider network so as to implement the plan. The Institute signed a memorandum of understand-ing with St. John in April 2011 to operationalize the HERP.

On a pilot basis, the two organizations agreed to start with fifteen locations which were identified along Mombasa- Nairobi- Nakuru - Kisumu -Busia and Nakuru-Eldoret Malaba as centres for petroleum related emergency response. The identified locations include Mombasa, Mtito Andei, Voi, Sultan Hamud, Nairobi, Maimahiu/Kinungi, Naivasha, Nakuru, Mau Summit Junction, Kericho, Kisumu, Busia and Eldo-ret, Webuye, Malaba. Most of these locations had been serving as rescue centres and had St. John staff and volunteers.

“We encourage all Kenyans particularly petroleum transporters to take a keen interest in this initiative and maximize on the use of the centres,” Mr Joseph M Panyako, the PIEA Executive Officer who has been instrumental in operationalizing HERP says.

The second phase, now ongo-ing, entails training of staff and volunteers of St. John Ambulance at each of the response centre on handling petroleum related incidents and accidents. This is branded; Emergency Responders training and is being done at each response centre. So far, two have already successfully been done, one in January 2012 and the other one in February 2012.

During the Emergency Respond-ers training, a wider spectrum of stakeholders is incorporated, an inventory of the available material and equipment is taken to enable

A group of Emergency Responders in a field training at the Nairobi HERP Centre

INDUSTRY NEWS

NEMA earns ISO 9001:2008 certification, unveils new logo

The National Environmental Management Authority (NEMA) received ISO 9001:2008 in December 2011.

The Authority was awarded the ISO certification by Bureau Veritas who were the external auditors. NEMA also unveiled a new logo during an event held to mark the ISO certification milestone.

Acting Director General, Dr Ayub Macharia said during the launch that ISO certification will make NEMA stronger as an agency in its pursuit to provide services that match international standards.

According to Dr Macharia, the journey to ISO certification by NEMA was set off in May 2010 by the desire to ensure that the quality management system of the Authority enables

it to effectively supervise and coordinate all matters relating to the environment.

“We at NEMA are confident that we shall live up to ISO 9001:2008 certification as every member of staff is responsible for at least one quality process. Regular monitoring of the system through scheduled audit programmes will provide factual information for decision making so as to prevent deviation from the standards before they occur”, Dr Macharia said.

During the event, the Permanent Secretary, Ministry of Environment and Mineral Resources (MEMR), Mr Ali Mohammed said that MEMR was committed to providing resources to improve standards of environments as enshrined in the constitution.

“The environment is Paramount to mankind survival,” the PS said. He added that the quality of services delivered by NEMA in collaboration with lead agencies is important in attaining Millennium

Dr Ayub Macharia, Director-General, NEMA

Development Goals as well as Kenya’s development blueprint; Vision 2030.

21

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INDUSTRY NEWS

222222

New PIEA Management Committee

Mr Rida Elamir was elected the new Board Chairman taking over from Mr David Ohana, the General Manager, KenolKobil who’s two terms expired accordingly.

Mr Francis Njogu was elected Vice Chairman tak-ing over from Rida Elamir who’s two terms expired accordingly. Francis is the Founder and Chief Executive

Rida previously served as the Vice Chairman during David’s tenure. Rida Elamir, has over 20 years experience in the energy sector having worked in various capacities in Tamoil Italy, Atomic Energy Vienna, Maxcom Energy, Italy and ENI – GASBV (AGIP).

Rida Elamir has also served as Managing Director Tamoil East Africa Limited, and is currently Managing Director, Libya Oil Kenya Limited.

Officer of Gulf Energy Lim-ited. Gulf Energy is a leading oil and gas trading company with subsidiaries and trading activities in all East African countries.

Francis is sponsoring and leading the development of Gulf Power – an 80MW independent power producer to be located on the outskirts of Nairobi, Kenya. Francis has a very keen interest in development matters and has been recognized by the United Nations as a business leader consequently being invited to attend the UN Private Sector Forum on Millennium Development Goals.

Mr Alexis Vovk, MD Total Kenya, Member Mr Christian Callede, Addax Kenya, Member

Mr Varun Sharma, MD Premier Agencies, Member

VisionBuilding expertise and excellence in the petroleum industry in the Region

MissionTo provide a forum for expertise and excellence in the oil industry in the East African region with the aim of promoting professionalism and free enterprise in petroleum business supported by the highest business operating standards, and adherence to Environment, Health and Safety ideals.

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Safety, awareness top priority - new PIEA Chairman

Q: Congratulations on being elected PIEA Chair-man. What is your reaction to this development?

A: It’s certainly an honour and privilege for both my-self and Libya Oil, Kenya. It’s also in line with our vision to partner in shap-ing African energy and empowering African born prosperity.

Q: What are your im-mediate priorities as PIEA Chair?

A: I hope to work with all stakeholders to realize PIEA’s vision of building expertise and excellence in the petroleum industry in the region and continue our mission of, providing a forum for developing expertise and excellence in the oil industry in the East Afri-can region with the aim of promoting professionalism and free enterprise in the petroleum business supported by the highest business operating standards, and adherence to Environment, Health and Safety ideals.

I hope we can expand into Uganda & Tanzania and engage the regional governments more to ensure industry issues are timely addressed to benefit the public and the oil industry stakeholders.

Q: What is your vision for the oil industry?

A: Apart from a profitable oil industry, we would like to see a safe and responsible industry that cares for the com-munity in which it operates.

Q: What are some of the salient issues that you felt strongly about as Vice-Chairman that you want to address during your tenure?

A: Safety – we have had several serious safety incidents including the Sinai incidents that I feel need further public education to avoid similar incidents in the future.

Q: What strategies will you adopt to drive your vision as PIEA Chairman?

A: Continue a number of initiatives currently used by PIEA to engage stakeholders. These include public forums, meetings with government and regulators and press com-munication and briefings to advise on issues as they arise to ensure general public education and awareness.

Q: What message would you like to send to oil industry players?

A: Let’s ensure we act responsibly to secure the countries in which we operate and our long term benefit.

Mr. Rida Elamir, the new PIEA Chairman during an interview

The first hazardous cargo drivers training took place at the School of Petroleum Studies on December 09, 2011.

On hand to officiate on the opening ceremony on behalf of the Total Group and Africa Road Safety Corridor initiative was Mr Joseph Adewa, the Executive Director, Total.

“Today, we mark another milestone in a journey that was started several years ago out of the realization that road accidents are causing untold suffering to many people in our country,” Mr Adewa said.

TOTAL Group and several other stakeholders including the World Bank have come together to launch an implementing entity known as Safe Way, Right Way which will promote road safety policies and awareness campaigns, including training of drivers.

“It is my sincere hope that at the end of this training, we may begin to see drastic reduction of road accidents especially along the Northern Corridor,” Mr Adewa noted.

In Kenya, at least 3,000 deaths are recorded each year as a result of road crashes. Approximately 9,000serious injuries result from these accidents.

The disturbing cases of death and injuries are largely caused through human error and judgement, which account to around 85 percent of the crashes.

Statistics indicate that Africa loses about 5 percent of its GDP output to road accidents and loss of productive lives. This is more than the development aid the continent receives.

“This colossal cost is due to loss of productive human capital, increased cost of healthcare and to say, this situation leads to increased poverty and dependence among many households,” Mr Adewa adds.

In response to the crisis, the United Nations has dedicated 2010-2020 as the decade of Action on Road Safety. During this time, road users and policy makers will be engaged to work together to not only amplify the message of road safety but also ensure that the drivers are retrained inorder to reduce road crashes by 50 percent by 2020.

School trains hazardous cargo drivers

Participants of the harzardous cargo drivers’ training pose with their certificates in December last year

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INDUSTRY NEWS

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Sinai fire accident investigation report complete

Kurrent Technologies Ltd submits LPG standards and regulations to Rwanda governmentKurrent Technologies concluded and submitted

proposed new LPG standards and regulations for the Ministry of Infrastructure, Rwanda

towards the close of 2011.The consulting firm had been contracted by the Rwan-dan government to develop standards and regulations to manage the EAC member state’s growing LPG sec-tor. Eng James N. Mwangi, the Chief Executive Officer (CEO), Kurrent Technologies Ltd says that the project is among other key engagements in the company’s stable which affirm its position as the leading consulting firm for the energy sector in East and Central Africa.

Last year, Kurrent Technologies, alongside Mott Mac-donald, UK undertook a feasibility study for a Liquefied Natural Gas (LNG) import facility for the Kenya government at the coast region. The two partners are now working on a study for an LNG fired power plant in the same area.

In early January, Kurrent Technologies Ltd rolled out an integrated Enterprise Resource Planning System (ERPS) known as Nolan 3.0 to improve its internal systems. In Kenya, the program is used by leading engineering firms such as Gibb Africa, Howard Humphrey and a few major architectural firms.

The core functions of Nolan 3.0 with detailed sub modules include project management, quality management, administration and development, human resource, finance, payroll as well as timesheets.

“The program, which will be implemented in phases will improve our efficiency, enhance our capacity to execute major infrastructural projects, enhance cost control and raise staff morale. Our focus is to give more value to our clients,” Eng Mwangi says.

The company is positioning itself for a fresh impetus in growth after successfully executing key energy undertakings independently and with strategic partners in the last few years. As a mat-

ter of fact, Kurrent Technologies was involved in the legal drafting of Petroleum regulations and Electricity tariffs for the Energy Regulatory Commission last

year in conjunction with Economic Consulting Associates. This was in addition to a Health Safety and Environmental (HSE) performance review for the countries petroleum indus-try for ERC.

The company, working alongside Trident Engineering is a consultant for Africa Gas Oil Ltd in the ongoing construction of a massive LPG terminal in Mombasa. Kurrent Technolo-gies is also conducting HSE training for RVR staff and contin-ues to offer TapRooT® Training world wide. The company is also involved in a major renewable energy project that is under execution. It is also currently involved in the construc-tion of several major petroleum terminals in the region. It has made great major breakthroughs in the renewable energy sector.

Eng James Mwangi,MD Kurrent

Technologies

Following the incident which occurred on 12th September 2011 in Sinai, near Industrial Area, an oil industry

investigation committee was established to investigate the root causes, recommend measures to prevent a recurrence and to improve emergency response.The committee included 12 professional ex-perts from Oil Marketing Companies (OMCs) who own depot facilities near the area, KPRL and KPC. The chairman of the committee was James Ngethi of Kenya Shell and Wanjiku Manyara of PIEA, the secretary.

The committee comprised of professionals with extensive and diverse skills, knowl-edge as well as experience. The report took three months to compile and is currently in circulation only to the investigation committee, industry Chief Executive Officers, who own oil depots and the Ministry of Energy Permanent Secretary. At a later date the report will be shared to all industry players as well as the regulators.

The investigation committee Terms of Refer-ence was to investigate the Sinai petroleum fire accident and make recommendations to prevent a recurrence and also improve the

oil industry’s emergency response procedures.

The investigation and the interviews had no criminal character and the in-formation gathered will be treated with high confidentiality and will be legally privileged to the committee members and interviewees only.

The report will not be used for any court proceedings whether civil or criminal in nature. Parties intending to do the latter have to carry out their own investigations. However, if security agents in their own investigation per-ceived areas of interface that required the committees’ cooperation then this would be granted with a high degree of

confidentiality and a commitment for non-disclosure.

In an effort to implement the recom-mendations therein, a mechanism under PIEA has been established to implement all the recommendations and in addition, convert the findings to industry standards, best practices guidelines and conditions for licens-ing of petroleum storage facilities for advancement of industry operations. Indeed, the relevant comments have been included in response to the draft petroleum regulations that were gazetted by Energy Regulatory Com-mission in December 2011.

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INDUSTRY NEWS

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The Hague Tel: + 31 70 324 6154 Fax: + 31 70 324 1741

Group Managing DirectorBabette van [email protected]

Sponsors/ ExhibitionSonkia [email protected]

RegistrationTanya [email protected]

www.petro21.com

Separately Bookable 3rd Eastern Africa: Strategy Briefing 26 March 2012 Presentations By: Dr Duncan Clarke, Chairman & CEO, Global Pacific & Partners

43rd PetroAfricanus Dinner 27 March 2012

3rd Eastern Africa Oil, Gas & Energy Conference 27 -28 March 2012

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26th - 28th March 2012, InterContinental Hotel, Nairobi, Kenya

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Official Endorsements

Confirmed Speakers IncludeSerge Matesco, Vice President, Sub-Saharan Africa, Total, ParisHE Hussein Abdi Dualeh, Minister of Mining, Energy & Water Resources,Republic of SomalilandSumayya Hassan-Athmani, Chief Executive Officer, National Oil Corporation of KenyaSam Malin, President & Chief Executive Officer, Avana Petroleum, MadagascarDuncan Clarke, Chairman & Chief Executive Officer, Global Pacific & Partners, JohannesburgAndrew Windham, Senior Partner, Windham & Associates, Cape TowIan Cloke, South & East Africa Exploration Manager, Tullow Oil, Cape TownJicheng Shi, General Manager, BGP East Africa, NairobiSenior Executive, Anadarko, HoustonPhil Heilberg, President & Chief Executive, Jarch Capital, USAJames Phillips, Chief Operating Officer, Africa Oil Corp, Addis AbabaAlexander Leslie, Director, Business Intelligence, The Risk Advisory Group, LondonGalib Virani, Associate Director, Afren plc, LondonDavid Ohana, Chairman, Petroleum Institute of East Africa, NairobiSenior Executive, Petroleum Exploration & Production Department, KampalaAnil Bhandari, Country Manager, ONGC Nile Ganga BV, KhartoumDan Foley, Regional Exploration Manager, Sub-Saharan Africa,Apache Corporation, HoustonBarry Rushworth, CEO & Executive Director, Pancontinental Oil & Gas, PerthDale Rollins, Chief Operating Officer, Orca Exploration, LondonDr Phil Nelson, Executive Director, Petrodel, Dar-Es-SalaamAlec Robinson, President & Chief Executive, Lion Petroleum, LondonTeklehaimanot Debretsion, Director, Hydrocarbon Division, Ministry of Energy & Mines, EritreaDr Canisius Kanagire, Executive Secretary, Lake Victoria Basin Commission, East African Community, KisumuRobin Vela, Chief Executive Officer, SacOil Holdings, JohannesburgSteve Noske, Managing Director, WHL Energy, AustraliaLindsay Elliott, Exploration New Ventures, Beach Energy, AdelaideXiao Zongwei, Vice President, CNOOC Africa, UKJ Laurie Hunter, Chief Executive Officer, Madagascar Oil LtdDr Ketsela Tadesse, Head of Petroleum Operations Dept., Ministry of Mines & Energy, EthiopiaTavares Martinho, Exploration Manager, ENH, MocambiqueDavid Ginger, Director, Subsurface & New Ventures, Cairn IndiaClare Akamanzi, Chief Operating Officer, Rwanda Development BoardJoseph Pili Pili Mawezi, Secretary General of Hydrocarbons, Ministere des Hydrocarbures, DRCGeoffrey Rugazoora, Chief Executive, Mogas GroupKennedy Liyungu, Director, Geological Survey Department, ZambiaDr Meshack Kagya, Senior Principal Geologist, Tanzania Petroleum Development Corporation, Dar-Es-Salaam

SIMBA Energy

26

President Kibaki takes over as EAC ChairmanKenya’s President Mwai Kibaki

took over the chairmanship of the East African Community (EAC)

Heads of State Summit in November 30, 2011 from Burundi’s President Pierre Nkurunziza.

According to the Communiqué of the 13th EAC Heads of State summit issued in Bujumbura, Burundi, Rwanda took over as rappoteur from Kenya. In his speech after taking over the chairmanship, President Kibaki called upon the United Nations Security Council to take serious steps towards stabilization of Somalia.

“The insecurity in Somalia is indeed an international problem and we urge the international community to complement the efforts of regional bodies, including IGAD and the African Union, towards bringing peace and security to the country,” President Kibaki said.

Regionally, the President emphasized that the success of the East African Community is linked to the state of affairs in the entire region. The theme of the 13th EAC Heads of State summit was: “Consolidating the Common

Market and Laying the Foundation for a Monetary Union.”

As he took over the chairmanship, President Kibaki said he looked forward to the expansion of the EAC noting that more countries had shown an interest in joining the community. The President of Kenya noted that the performance of the intra-East African Community trade has grown over the last five years, rising from about 2 billion US Dollars in 2004 to about three and a half billion US Dollars in 2009.

“A closer look at both the exports and imports of each one of the Partner States reveals similar upward trends over the period. This progress has been achieved in partnership with the private sector,” President Kibaki said.

Kibaki encouraged business people in East Africa to re-double their efforts in playing their rightful role as the engine of growth in the community.He at the same time, expressed the need to eliminate Non-tariff Barriers that continue to raise the cost of doing business in East Africa adding that EAC should fast-track the establishment of one-stop border posts

at key border points to facilitate trade.On infrastructure, President Kibaki

appreciated the work already done in the implementation of the East African Road Network Project but stressed that more remains to be done.

During the session, the summit adopted the annual report of the Council of Ministers for the period between November 2010 to November 2011, the report of the Council of Ministers on the proposed attainment of a Single Customs Territory and the report of the Team of Experts on fears, concerns and challenges on the Political Federation which were present by Kenya’s East African Community Minister Musa Sirma.

President Mwai Kibaki

KPRL receives engine-generator set for its 9MW captive power generation plant

The Kenya Petroleum Refineries Limited (KPRL) has received the main components of a 9.2 MW captive power generation plant.

Since its inception in 1963, KPRL has relied on power from the national grid, which suffers from frequent interruptions. According to KPRL, the number of power interruptions has been increasing steadily in the last 10 years, currently at an average 45 interruptions per year.

“These interruptions result in lower plant reliability, higher operation and maintenance costs, and potentially unsafe operation. KPRL therefore decided to install a 9.2 MW captive power plant to provide power to the refinery,” the company said in a statement.

The power plant will run on heavy fuel oil, which will be pumped directly from the refinery by pipeline. The Power Generating Set (GENSET) and all accessories were procured from Wartsila Finland which is also providing installation and commissioning support. The GENSET model is W20V32/6.6 KV OilCube and is designed for base load (continuous) operation. It will also run in parallel with the grid. The GENSET weighs 133 metric tons and measures 12.9 m (L) x 3.15 m (W) x 4.4 m (H).The project cost is estimated at USD 13.5 million. Project commissioning and startup is scheduled for end of June 2012.

INDUSTRY NEWS

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INDUSTRY NEWS

Total Foundation donates KSh43.5 millionThe Total Foundation has donated 500,000 dollars

(approx KSh43.5) to the African Medical and Research Foundation (AMREF) towards urgent

measures to fight famine and drought in Kenya, Ethiopia and South Sudan.Of the total amount, AMREF Kenya received KSh12.3 million while KSh18.4 million went to the Flying Doctors Service. The contribution to AMREF will be used to implement drought mitigation interventions in Turkana and medical outreach services across eight rural hos-pitals in Northern Kenya (Dadaab, Garissa, Wajir, Ijara and Mandera) and part of Rift Valley province (Lodwar, Kakuma and Kapenguria). The funds for the Flying Doc-tors Service will help cover the expenses of providing medical evacuation flights in East and Central Africa.

The funds were presented to Dr. Lennie Bazira Kyo-muhangi, the Country Director of AMREF Kenya, by Alain Champeaux, the Total Group outgoing Senior Vice President, Supply and Marketing for Africa and Middle East, during a cocktail party held by Total Kenya at the Hotel Inter-Continental, Nairobi for the business com-munity in Kenya.

“In Turkana, the Total funds are being used to procure and distribute food, drugs, medical supplies, water stor-age tanks and support community health workers with nutrition assessment kit,” Dr. Kyomuhangi said.

Already the TOTAL funds have been used to purchase 6,000 chlorine tablets which have been distributed to 600 households in Turkana. These drugs are used to treat water for domestic use in order to curb the incidence of water borne diseases. Water storage tanks have been bought which will be handed to over 1,000 families and two sites in Lopiding and Nanam areas have been identified for digging boreholes. AMREF has also embarked on buying rice, beans and nuts for distribution to the community.

“Last year, Total Group in France was one of the first companies to respond to the international appeal for aid for the victims of the famine in East Africa. The Total Foundation allocated the 500,000 dollars which was donated to AMREF, the leading medical NGO in Africa. We are glad that already they have started utilizing the funds to help communities in Northern Kenya.” Mr. Champeaux said during the function.

Total was also on hand to help the victims of the Sinai Fire Tragedy through its donation of medical kit for the treatment of severe burns. “Our involvement in this region goes back very many years and underscores The Group’s commitment to the communities where we do business”, he added.

The Total Foundation donated 500,000 dollars,(approximately 43.5 million shillings) to the African Medical and Research Foundation (AMREF) to be used for urgent measures to fight famine and drought in Kenya, Ethiopia and South Sudan. The cheque was presented to Dr Lennie Bazira Kyomuhangi (right), the Country Director of AMREF Ke-nya, by Alain Champeaux (left), the Total Group outgoing Senior Vice President, Supply and Marketing for Africa and Middle East, during a cocktail party held by Total Kenya Limited at the Inter-Continental in Nairobi for the business community in Kenya.

KPC tenders for inland LPG facilities studyKenya Pipeline Company (KPC)

has floated an international tender for a feasibility study

on inland bulk liquefied petroleum gas (LPG) filling plants and storage facilities.

The study is for review of the LPG market with supply logistics, provision of demand forecast up to 2030, recommending of infrastructure required to meet Kenyan and regional demand options, among others.

The government’s policy as spelt out in Vision 2030 is to facilitate provision of adequate supply and distribution of LPG at a least-cost basis to enhance consumption among the urban and rural poor.

Critical to success of the policy is availability of storage, distribution and

dispensing facilities within close proximity to consumers to guarantee access while maintaining high quality standards.

KPC’s Managing Director Selest Kilinda said firms interested in the study must submit proposals by March 1, 2012 before 10 a.m. with tender security from a bank of KSh300,000 or equivalent in US dollars.

“International firms incorporated outside Kenya must partner with local companies in a joint venture agreement arrangement for services. A copy of a joint venture agreement must be attached,” he said.

The Ministry of Energy in 2004 through World Bank’s credit for Energy Sector Recovery Project commissioned Petroleum Development Consultants (PDC) to undertake study of LPG demand in East Africa and preliminary design of infrastructure to meet needs of Kenya.

The study recommended development of LPG facilities in Mombasa, Nairobi, Eldoret, Kisuimu, Nakuru and Sagana. The facilities have not been developed to date.

“It has become necessary to review the information upon which the inland LPG facilities will be developed and determine appropriate project implementation modalities for expeditious realization of the project. KPC is the government’s implementing agent in the development of LPG facilities,” said Mr Kilinda.

He said the successful consultant will review previous designs, assess viability of investment and present a business case and a LPG marketing strategy that would ensure full utilization of the facilities.

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MEMBER PROFILE

Primefuels ISO Certified at 15The bulk liquids logistics provider has attained market leadership by virtue of a strict safety code.

By TimoThy Simiyu

Primefuels received ISO 14001:2004 Environmental Management Systems (EMS) certification in December 2011 from SGS, a first among peers in the region as the company turned 15.

Founded in 1996, the company has managed its road transport operations in a safe, efficient and sustainable manner, according to Mrs Jayne Musomba, the General Manager (GM), Primefuels, Kenya. “Primefuels Kenya Limited endeavors to fulfill its obligations as defined and adapted from its health, safety, security and environment policy commitment,” Mrs Musomba says.

Consequently, Primefuels initiated the ISO 14001:2004 certification process in mid-2010 and accelerated implementation of the environmental management system in 2011. It demonstrated enterprise-wide understanding of the ISO 14001:2004 standard to SGS - an independent auditing agency, and sound, documented, environmental policies as well as management processes. As a result, SGS Kenya conducted certification audits in the fourth quarter of 2011, culminating in the December 2011 recognition.

“As concerns about global climate change and sustainable business practices grow, an increasing number of our customers are demanding that our processes and systems are of the highest standards. The ISO 14001:2004 certification is evidence of our commitment to continually improve our performance,” the GM adds.

Mrs Musomba points out that Primefuels upholds adherence to HSSE standards in road transportation and shoulders associated costs as opposed to focusing on short-term gains. “The company is committed to ensuring the highest standards in petroleum transportation by incorporating the best practices in HSSE,” Mrs Musomba reiterates.

Indeed, Primefuels has a fully-fledged HSSE department headed by Mr Samuel Odumba. The HSSE manager is responsible for managing and enforcing HSSE systems and training staff for purposes of effectively meeting customers’ needs sustainably. The company’s management and staff are thoroughly updated on HSSE issues, which form part of the company’s human resource policy.

When Primefuels was established, transportation of Liquefied Petroleum Gas (LPG) in East Africa was a major challenge yet the demand was high. The company’s founders led by the Managing Director, Mr. Asif Abdulla, initially mounted LPG tanks on railway flatbeds and then transported it inland from Mombasa.

Primefuels started off with contracts from Agip and Total. In 2000, the company won a contract to deliver fuels to Geita Gold mines in the Mwanza region of Tanzania. The contract was a major milestone in the company’s history as it opened new market horizons.

By then Primefuels did not have their own trucks but were using railway wagons and subcontracting trucks from other companies. They bought six trucks at around this time and the fleet has grown steadily ever since. Today, Primefuels is proud to have one of the best transport organization structures in the East and Central African region.

All Primefuels trucks are fitted with GPRS communication gadgets hence they are easily managed and monitored on the road during the entire journey. One of the company’s rules is that the drivers are instructed not to drive at night as majority of accidents occur at night.

The company is committed

to ensuring the highest standards

in petroleum transportation by incorporating the best practices in

HSSE

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From (R) Mr. R K Pillai – Primefuels Operations Manager (Mombasa), Mrs Jayne Musomba, General Manager and Mr Samuel Odumba – HSSE Manager (Mombasa) with the ISO 14001:2004 Environmental Management Systems (EMS) certificate awarded to the company by SGS

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Other rules and regulations as stipulated by Primefuels include, not driving for more than four hours without a 15 minutes rest and strictly following the route mappings. The company has an alcohol and seat belt policy. It also ensures drivers undergo frequent refresher courses.

According to the GM, there is need for maximum cooperation and spreading the safety gospel among all the players in the transportation industry. “We can only achieve better business practices through working very closely with others and by supporting public and governmental efforts that foster HSSE,” Mrs Musomba says.

The company has an elaborate welfare scheme for staff and holds blood donation camps as well blood test camps to encourage employees to give back to the community. Primefuels has a policy of investing in employees on a long-term basis. The company believes that employees are able to grow and enhance their professional skills to the maximum in a secure environment. “Most staff members have grown with the company and they are the key resource and reason for our progress,” says Mrs Musomba.

After the initial Kenyan venture got a foothold locally, Primefuels ventured outside into Tanzania and Uganda, then on to Zambia, where its subsidiaries have blazed the trail. The company extends its operations in Eastern Democratic Republic of Congo (DRC), Malawi, among other neighboring countries. To be specific, today Primefuels has presence in:

DRC Congo where deliveries are made to destinations along the Eastern DRC frontier in over 4 provinces,

Uganda where using a two pronged approach, Primefuels offers multi modal services of both rail and road to deliver product to its customers

Primefuels delivers to various customers in South Sudan and has an office in Juba for coordination of activities.

In Tanzania, Primefuels Tanzania Limited has over the years proved to be the reliable transporter offering multi-modal services while maintaining High HSSE practices

In Zambia, Primefuels has incorporated Primefuels Zambia and offers warehousing and transshipment facilities.

Rwanda and Malawi complete the immediate picture of Primefuels reach in the region with plans of moving further inland in the drawing stage as Africa becomes part of the global village.

To be specific, today Primefuels has presence in: DRC Congo where deliveries are made to destinations along

the Eastern DRC frontier in over 4 provinces, Uganda where using a two pronged approach, Primefuels

offers multi modal services of both rail and road to deliver product to its customers

Primefuels delivers to various customers in South Sudan and has an office in Juba for coordination of activities.

In Tanzania, Primefuels Tanzania Limited has over the years proved to be the reliable transporter offering multi-modal services while maintaining High HSSE practices

In Zambia, Primefuels has incorporated Primefuels Zambia and offers warehousing and transshipment facilities.

Rwanda and Malawi complete the immediate picture of Primefuels reach in the region with plans of moving further inland in the drawing stage as Africa becomes part of the global village.

The Primefuels management team is confident of the future and has plans to keep growing in the region. According to Mr. Davender Mongia, the Financial Controller, each country in the region has its own requirements and uniqueness.

There is no specific country that one can refer to as better or worse in comparison to the other. “Each country has its own geographical, social or economic advantage, some are landlocked, and some have rich natural resources - each country is unique on its own,” says Mr. Mongia.

His message to all petroleum transporters and logistics companies is that, they should all work towards maintaining the best standards in the market and always consider the welfare of both internal and external customers as well as the environment. He is more emphatic about safety and best business practices. “Let all players in the petroleum transport business always play fair,” adds Mr. Mongia.

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Mrs. Jayne N. Musomba, General Manager, Primefuels Kenya Limited receiving an award from the Nation Media Group CEO, Linus Gitahi in last year’s top 100 small and medium sized companies event.

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INDUSTRY NEWS

The Kenya Bureau of Standards (KEBS) issued eight new standards on LPG cylinders late last year, even as safety issues continued to take centre stage in the country.

Standard No. Title

KS ISO 13341:2010 Kenya Standard – Gas cylinders- Fitting of valves to gas cylinders, First Edition.

KS ISO 25760:2009 Kenya Standard – Gas cylinders – Operational procedures for the safe removal of valves from gas cylinders, First Edition.

KS ISO 22434:2006 Kenya standard – Transportable gas cylinders – Inspection and maintenance of cylinder valves, First Edition.

KS ISO 24431: 2006 Kenya Standard – Gas Cylinders – Cylinders for compressed and liquefied gases (excluding acetylene) – Inspection at time of filling, First Edition.

KS ISO 9809-3:2010 Kenya Standard – Gas cylinders – Refillable seam less steel gas cylinders – Design, construction and testing Part

3: Normalized steel cylinders, First Edition.

KS ISO 18172-1:2007 Kenya Standard – Gas cylinders – Refillable welded stainless steel cylinders Part 1: Test pressure 6Mpa and below, First Edition.

KS ISO 18172-2:2007 Kenya Standard – Gas cylinders – Refillable welded stainless steel cylinders Part 2: Test pressure greater than 6Mpa, First Edition.

KS ISO 14113:2007 Kenya Standard – Gas welding equipment – Rubber and plastics hoses and hose assemblies for use with industrial gases up to 450 bar (45Mpa), First Edition.

The above standards took effect on October 28 2011 follow-ing publication of Gazette Notice No. 13754 contained in Kenya Gazette Vol. CXIII – No. 106 of the same date.

The standards came out in a back drop of fresh concerns amongst industry players on the capacity of enforcement agen-cies in routing out non-compliant facilities in various parts of Kenya. A recent fire incident in Nyeri involving LPG for instance brings the issue into sharp focus.

Up until the inaugural East Africa World Liquefied Petroleum Gas As-sociation Summit which was facili-tated by PIEA and hosted by Kenya through the Ministry of Energy, LPG had not received its due attention.

Following the outcome of the Summit PIEA, through its Board’s approval, has established the LPG Focus Forum (LPG FF) with the aim of receiving adequate attention. It has been appreciated that the importance of issues related to LPG as a modern energy cannot be understated espe-cially with the infrastructural developments that are expected to significantly increase its consumption in the East Africa region.

Further LPG malpractices resulting from poor monitoring and limited enforcement capacity on the part of regulatory agencies, limited public awareness on the risks involved while handling LPG and lack of adequate capacity of adequately trained staff in the LPG business segment are areas cut out for the LPG FF to work on and progress is on course. The Forum currently has membership drawn from relevant PIEA Member Companies.

In an effort to increase LPG awareness and safety the Energy Regulatory Commission (ERC) and PIEA are due to commence a media campaign this quarter.

The PIEA and the WLPGA are, in bid to widen training and education of the sector workforce on appropriate opera-tional, business and safety practices and additionally to continue transfer of knowledge, cooperation and collabora-tion between public and private sectors in the region and the rest of the world,all ste to run the EA WLPGA-PIEA East Africa LPG training on 21st to 23rd March 2012 at the Intercontinental Hotel in Nairobi .

According to the Kurrent Technologies CEO, Eng. James Mwangi, some of the new entrants into the LPG business are complying with the law therefore demonstrating a posi-tive trend. But he proposes a census of all LPG facilities in the country to establish their location and numbers, and a subsequent inspection of each to ascertain their compli-ance.

PIEA has rooted for the ERC to appoint an independent LPG inspection agent to fast track monitoring, compli-ance and enforcement in the LPG segment and quickly significantly reduce the escalating malpractices which are hampering growth and consumer safety.

KEBS should also continue developing technical standards and perhaps lower the cost of accessing the standards to make them widely accessible. Such standards, though they may be borrowed from elsewhere, should be benchmarked against world renowned certification bodies.

New LPG Standards gazetted to Enhance Safety

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GUEST COLUMN

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School of Petroleum Studies

Specialized Certificate Courses- Jan- August 2012Month Week Dates Duration Programme

VenueCode Title

March W1

W2 5th to 9th Mar 2012 5 days C 3 Petroleum Depots Operation and Distribution Management

Western Kenya

W3 12th to 16th March 2012 5 days C 9 Service Station Management Dar

W4 19th to 23rd March 2012 5 days C 4 LPG Operations Nairobi

W5 23rd to 25th Mar 2012 3 days S 2 Service Station Attendants Course Nairobi

April W1

W2 9th to 11th April 2012 3 days C 1 Introduction to the Oil industry Mombasa

W3 18th to 20th April 2012 2 days R 2 Managing Employee Relations in Petroleum Sector Nairobi

W4 23rd to 27th April 2012 5 days C 5 Petroleum Stocks Control (Petroleum Stocks Module 1) Western Kenya

W5 30th April to 4th May 2012 5 days S 1 Driver Certification Nairobi

May W1

W2 7th to 11th May 2012 5 days E 2 Seismic Acquisition Field Techniques Nairobi

W3 14th to 18th May 2012 5 days C 5 Petroleum Stocks Control (Petroleum Stocks Module 1) Nairobi

W4 21st to 25th May 2012 5 days C 12 Contractor Safety Management Nairobi

W5 28th to 29th May 2012 2 days R 1 Strategic Customer Service in Petroleum Sector Nairobi

June W1

W2 4th to 8th June 2012 5 days C 1 Introduction to the Oil industry Kampala

W3 11th to 15th June 2012 5 days C 2 Supply, Planning and refining Mombasa

W4 21st to 22nd June 2012 2 days M 2 Middle Management Development Programme Nairobi

W5 25th to 27th June 2012 3 days C 14 Executive Introduction to the Oil Industry Nairobi

July 9th – 13th July 2012 C 3 Petroleum Depots and Operations and Distribution Management

Nairobi

19th to 20th July 2012 2 days M 3 Performance Management for Higher Productivity Nairobi

23rd – 27th July 2012 C 10 Petroleum Standards, Legal and Regulatory Framework Nairobi

30th Jul to 3rd Aug 2012 S 1 Driver Certification Western Kenya

August 6th – 10th August 2012 C 1 Introduction to the Oil Industry Nairobi

16th to 17th Aug 2012 2 days B 1 Finance Management skills for non-finance Manager Nairobi

20th – 24th August 2012 C 8 Petroleum Road Transportation Management Nairobi

27th Aug to 29th Aug 2012 3 days S 2 S2: Service Station Attendants Course Western Kenya

The School of Petroleum Studies is a subsidiary of the petroleum Institute of East Africa (PIEA).

The school of Petroleum Studies offers Specialized Certificate petroleum courses and Regular Diploma programmes for those with interest to build careers in the Oil industry with proficien-cy, skills, attitudes and com-petences that they will require to carry out in the Industry appropriately.

Environmental Impact Assessment Course for EIA LEAD expertsAdmission frequency :- Monthly, Duration :- Three weeks, Charges :- 50,000/=Mode of study : Evenings and weekends,Curriculum Approved by NEMA

Registered : DIT/TRN/414, MOHEST/PC/129/0

Charges: - Members : Kshs 49,000/= plus VAT, Non Members : Kshs 62,500/= plus VAT. Executive Introduction to The Oil industry (costs) Kshs 50,000/= plus VAT (for all)

REGULAR PROGRAMMESDiploma in Petroleum Management.Diploma in Petroleum Geoscience.Certificate in Petroleum Geoscience.

Minimum entry requirementsFor Diploma KCSE certificate with a mean grade of C plain.For certificate KCSE certificate mean grade of D plus. Intake: January and June/July Examining body: Kenya National Examinations council (KNEC) Mode of study: Day/Evening and Saturdays/E-learningCourse duration: Diploma 2 and half years (3 modules), Certificate 1 and half years (2 modules)Cost per module: Diploma –Kshs 80,000, Certificate –Kshs 65,000

Registration forms:Available from school of Petroleum Studies, 5th floor orPetroleum Institute of East Africa, 4th Floor, Bruce House.Forms can be downloaded from www.petroleum. co.ke.Email: [email protected] Tel:2249081 /313046/ 0722 221120

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A smile changes everything… Operation Smile marks 30 years of passionate mission

Seven-month-old Promise Akiru from Kenya is his parents’ first and only child, and they were devastated when he was born with a gaping cleft lip. When they heard that Operation Smile would be conducting a medical mission in Nyeri,

they travelled a great distance to give their son the chance for a new life. Promise is a beautiful child and he immediately captured the hearts of the medical volunteers. After his surgery, when his mother saw her son for the first time, not only did her eyes fill with tears of joy, but the volunteers were deeply impacted by the emotionally powerful moment.Every three minutes, a child like Promise is born with a cleft. In Kenya, more than 2,700 children a year are born with this tragic facial deformity. One in 10 of those chil-dren will not live to see their first birthday. It is estimated that that over 20,000 Kenyans are living with and suffering from cleft lips and cleft palates. Those who survive often can’t speak or eat properly. Many live in isolation, completely shunned by their com-munities. With a surgery that takes as little as 45 minutes, these children’s lives can be transformed forever.

Almost 30 years ago, Dr. Bill and Kathy Magee refused to look away from these children who desperately needed help. In 1982, their passion and determination led to them founding Operation Smile, a children’s medical charity that works in more than 60 countries. This year, Operation Smile will commemorate its 30th Anniversary of pro-viding free reconstructive surgery and related medical services for children and adults who suffer from facial deformities such as cleft lips and cleft palates, as well as burns.

Today, Operation Smile is one of the largest volunteer-based surgical charities in the world. The organization and its co-founders have received numerous prestigious awards, including the first $1 million Conrad N. Hilton Humanitarian Prize which recognizes outstanding contributions made to alleviate human suffering, and in 2007, the President’s Call to Service Award. Through the 30th Anniversary events, Operation Smile will continue to advocate for improving the health and lives of children in Kenya and worldwide, while also raising awareness of this potentially life-threatening and socially debilitating issue.

In the last three decades, Operation Smile has mobilized more than 5,000 volunteer medical professionals from over 80 countries. Through the support of generous donors

and dedicated medical volunteers, the organization has provided over 2 million comprehensive healthcare evaluations and over 200,000 free surgeries for our patients worldwide – giving them new smiles and hope for a better future.

In Kenya, the first Operation Smile medical mission took place in Nairobi, at the Kenyatta National Hospital, in September 1987. Operation Smile in Kenya has centers in Nairobi, Nyeri, Meru, Nakuru, Kisumu and Mombasa, and has provided free surgery and new smiles for almost 10,000 Kenyan patients.

After years of helping patients suffering from burn injuries, Operation Smile re-cently established an official Burns Divi-sion, and conducts medical missions to solely treat patients affected by burns. In Nairobi on 12th September 2011, a terrible fire was caused by a fuel leak from a pipeline in the Sinai slum. The tragedy claimed over 100 lives and 120 more people suffered acute burns. Operation Smile surgeons from Canada and India traveled to Kenya to volunteer their time and expertise. They worked tirelessly at Kenyatta National Hospital alongside Kenyan surgeons to provide free surgeries for over 37 burns patients – performing a variety of procedures including skin grafts and contracture releases – to relieve the human suffering left behind by the fire tragedy.

Operation Smile is committed to build-ing a self-sufficient global health net-work in each of its partner countries by training local doctors to empower them to treat their own local communities all year round. While helping the burn pa-tients, Operation Smile’s medical teams also trained local doctors on new skills and techniques. Based on the success of this project, the first inaugural burn mission in Kenya is scheduled for June 2012 in Nairobi, in conjunction with the celebration of Operation Smile’s 25th Anniversary in Kenya.

Today, thousands of children like Prom-ise have new smiles and are now a vi-brant part of their community. Operation Smile believes there is no greater gift than the smile of a child. But it is only possible through the support of dedi-cated medical volunteers, advocates and donors. For more information, please visit www.operationsmile.org.

CHARITY

Seven-month-old Promise Akiru from Nyeri is presented to his mother by Operation Smile Volunteers after undergoing reconstructive surgery. He was born with a gaping cleft lip. Operation Smile photo - Brooke Gordon.

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STATISTICS

Month/Year 2007 2008 2009 2010 2011January 54.85 92.25 45.85 77.50 95.55February 58.75 95.10 44.95 74.20 103.60March 62.10 102.20 47.55 78.30 112.55April 67.60 109.35 52.15 84.80 120.70May 68.40 125.75 60.15 77.85 113.60June 69.70 134.00 71.65 74.80 112.15July 73.70 137.35 66.20 73.00 113.95August 71.75 117.50 72.75 74.60 109.05September 78.55 98.05 69.10 75.90 110.90October 76.29 69.25 74.30 81.50 108.95November 91.75 51.40 78.60 85.65 114.35 December 90.60 42.10 76.10 91.85 111.80

Hydrocarbon Value at KPRL - 2011Month

Premium Gasoline

Dual Purpose Kerosene

Automotive Gas Oil

Murban Crude

Kshs/Litre Kshs/KgJan 57.38 60.77 60.30 64.64Feb 59.80 67.15 67.03 71.07March 67.00 76.24 75.71 78.77April 72.87 78.96 80.10 83.88May 71.20 73.98 74.58 80.56June 71.34 76.52 77.58 82.94July 75.69 79.09 79.73 84.75Aug 74.79 78.07 78.29 83.25Sept 76.78 80.85 81.52 88.07Oct 80.42 84.34 84.41 90.96Nov 70.10 80.99 82.16 88.02Dec 63.27 71.89 74.67 79.82

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The table below shows the actual monthly average FOB prices for Murban crude oil imported into Kenya from Abu Dhabi National Oil Company (ADNOC). The price applicable for each loading is the daily average for the month in which crude oil is loaded, which means this average is only known after month has ended.

Murban Crude Oil Monthly Average Prices

Kenya Petroleum Sales Y E A R

Products 2004 2005 2006 2007 2008 2009 2010 2011

Avgas 2,462 2,763 2,752 2,999 3,380 2,007 2,672 2,812

Jet A-1 675,930 710,670 751,927 808,363 705,705 740,211 747,841 889,251

Premium Gasoline 376,034 383,267 429,900 438,545 417,794 542,856 633,397 740,644

Regular Gasoline 86,453 81,258 79,056 73,241 61,033 55,158 56,953 40,388

Kerosene 305,825 389,607 364,234 329,853 285,003 374,945 323,441 340,603

Gas Oil 948,066 1,052,581 1,221,373 1,370,126 1,429,838 1,675,577 1,583,718 1,769,029

Industrial Diesel 30,787 29,623 45,292 47,007 30,344 23,897 26,570 32,291

Fuel Oils 472,107 586,661 713,702 674,809 600,999 590,944 570,232 637,417

LPG* 41,884 48,827 64,639 74,017 78,030 59,773 63,779 62,499

Bitumen* 8,262 11,650 14,634 16,677 17,733 12,405 7,761 10,521

Lubricants 36,508 30,965 39,336 33,074 32,675 26,514 30,970 43,292

Greases* 604 1,206 3,775 3,130 2,431 1,429 1,069 655

TOTAL 2,984,922 3,329,078 3,730,620 3,871,841 3,664,965 4,105,715 4,048,404 4,569,402

- Units in M³ - * Units in metric tonnes - Includes sales for power generation Source : Pipecor

Refinery Production 2011During the year 2011, the refinery processed a total of 1,742,146metric tons of crude oil.

The crude oil intake, products output and additives usage were as follows:

CRUDE OIL INTAKE % Murban 1,736,488 99.68Slops 5,658 0.32TOTAL 1,742,146 100.00

PRODUCTS YIELD % Liquefied Petroleum Gas 27,628 1.59Unleaded Regular Gasoline 36,887 2.12Unleaded Premium Gasoline 141,485 8.12Dual Purpose Kerosene 393,265 22.57Automotive Gas oil 402,845 23.12Industrial Diesel oil 26,576 1.53Fuel Oil 125 cst 32,006 1.84Fuel Oil 180 cst 312,871 17.96Low Sulphur Fuel Oil 180 cst 175,138 10.05Bitumen Feedstock (11,182) (0.64)Bitumen 5,894 0.34Tops* 113,862 6.54Naphtha* 1,303 0.07Additives (169) (0.01)Fuel & Loss 83,737 4.81TOTAL 1,742,146 100.00

Crude Oil Imports into KenyaDuring the year – 1,789,374metric tons of crude oil were im-ported by five oil marketing companies as given here below:

Importer M.Tons %KenolKobil 816,516 45.63Gulf Energy 492,789 8.74Addax Kenya 241,923 13.52Essar 81,822 27.54Galana Oil Kenya 156,323 4.57TOTAL 1,789,374 100.00

The quantity of crude oil imported was all from the United Arab Emirates (UAE). A total of 22 crude oil vessels were handled at Kipevu Oil Terminal. The largest quantity of crude oil delivered in one parcel was 83,561metric tones of Murban crude by MT Genie in July 2011 on account of Gulf Energy Limited.

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Maximum pump prices (15th February 2012 to 14th March 2012)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU

Super Petrol 108.07 111.32 111.92 113.03 113.09Regular Petrol 112.54 115.40 115.88 116.91 116.90Kerosene 80.95 83.74 84.51 85.53 85.53Automotive Diesel 102.05 105.29 106.09 107.20 107.26

Maximum pump prices (15th January 2012 to 14th February 2012)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th December 2011 to 14th January 2012)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th November to 14th December 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th October to 14th November 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th September to 14th October2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th August to 14th September 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


STATISTICS

Kenya Petroleum Sales January to December 2011Company Market Share %KENOLKOBIL 25.0 TOTAL 23.3 SHELL 17.8 LIBYAOIL 8.8 NATIONAL 5.6 BAKRI 3.1 GAPCO 2.8 GULF 1.9 HASHI 1.7 HASS 1.7 GALANA 1.4 ENGEN 0.7 OILCOM 0.6 RIVAPET 0.6 MGS 0.6 TROJAN 0.4 FOSSIL 0.4 ADDAX 0.3 BANODA 0.3 REGNOL 0.3 PETRO 0.3 MILLENIUM 0.2 E.A. GASOIL 0.2 AL-LEYL 0.2 GLOBAL 0.2 MULOIL 0.2 Others 1.4 Total 100.0

Overall Market Shares (including exports)January to December 2011Company Market Share %KENOLKOBIL 21.2TOTAL 19.5SHELL 14.4LIBYAOIL 7.9NATIONAL 4.5GAPCO 4.1HASS 3.2BAKRI 3.2GULF 3.2KOBIL 1.9FOSSIL 1.9ADDAX 1.4HASHI 1.4GALANA 1.4ENGEN 1.0MGS 0.9BANODA 0.9ROYAL 0.8AINUSHAMSI 0.6TOSHA 0.5ALBA 0.5OILCOM 0.5TROJAN 0.5RIVAPET 0.5JADE 0.5OLYMPIC 0.4REGNOL 0.4OILCITY 0.3Others 2.4Total 100.0

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Maximum pump prices (15th July to 14th August 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th June to 14th July 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th May to 14th June 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (Revised: 4th May to 14th May 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th April to 3rd May 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th March to 14th April 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th February to 14th March 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th January to 14th February 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Maximum pump prices (15th December to 14th January 2011)PRODUCT MOMBASA NAIROBI NAKURU ELDORET KISUMU


Site sampling and testing by SGS of products for kerosene adulteration and export dumping indicates that the mal-practices have been subdued by the stringent enforcement in place.

Some isolated cases have been reported as indicated in the tables below.

Kerosene Programme - January to December 2011 Sites Tested Sites Found Positive Province Independent Company Total Independent Company Central 23 18 41 1 0 0.02Nairobi 7 80 87 1 2 0.03Eastern 16 12 28 1 0 0.04Western 21 6 27 2 0 0.07Nyanza 21 22 43 0 0 0.00Rift Valley 47 47 94 1 1 0.02 135 185 320 6 3 0.03

Export Programme - January to December 2011 Sites Tested Sites Found Positive Province Independent Company Total Independent Company Central 23 18 41 0 0 0.00Nairobi 7 79 86 0 0 0.00Eastern 16 12 28 1 0 0.04Western 21 6 27 1 0 0.04Nyanza 25 21 46 5 0 0.11Rift Valley 47 47 94 1 0 0.01 139 183 322 8 0 0.02

STATISTICS

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LOCATIONS OF HIGHWAY EMERGENCY RESPONSE CENTRES EMERGENCY RESPONSE CENTRES

For Petroleum on land transportation

Response centres establishedCourtesy of the partnership between Petroleum Institute of East Africa (PIEA) and St. John Ambulance

RC-15

RC-12

RC-11

RC-10 RC-8

RC-7

RC-5

RC-14

RC-9

RC-6

RC-4

RC-3

RC-2

RC-13

RC-1

Location of Response Centre

Response Centre nameResponse Center No.

Location Name Company in-charge of the centre

1. RC - 1 Mombasa KPRL2. RC - 2 Voi Total (K) Ltd3. RC - 3 Mtito Andei Libya Oil4. RC - 4 Sultan Hamud Kenya Shell5. RC - 5 Nairobi National Oil6. RC - 6 Kinungi KenolKobil7. RC - 7 Naivasha Engen8. RC - 8 Nakuru Gulf energy9. RC - 9 Molo Total (K) Ltd10. RC - 10 Kericho Libya Oil11. RC - 11 Kisumu Total (K) Oil12. RC - 12 Busia Kenya Shell13. RC - 13 Eldoret KPC14. RC - 14 Webuye KenolKobil15. RC - 15 Malaba Hashi Energy

Location of Response Centre

Response Centre name

Legend

RC

By Joseph M. Panyako (EO - PIEA) Courtesy of PSECNot drawn to scale

PETROLEUM TAXES

Import Duty

Excise Duty

VAT Road

Mainten. Levy Petroleum Devel. Levy

Import Decl. Form

Remission Kshs/Litre

Motor Spirit (Gasoline) Regular - 19.505 - 9.00 0.40 2.25% 0.45 Motor Spirit (Gasoline) Premium - 19.895 - 9.00 0.40 2.25% 0.45 Aviation Spirit - 19.895 - - 0.40 2.25% 0.45 Spirit Type Jet Fuel - 19.895 - - 0.40 2.25% 0.45 Special Boiling Point & White Spirit - 8.500 - - - 2.25% 0.30 Other Light Oils and Preparations - 8.500 - - - 2.25% 0.30 Partly refined (including topped crudes) - 1.450 - - - 2.25% 0.30 Kerosene type Jet Fuel - 5.755 - - 0.40 2.25% 0.45

Illuminating Kerosene (IK) - - - - 0.40 2.25% 0.45 Other Medium oils and preparations - 5.300 - - 0.40 2.25% 0.30 Gas Oil (automotive,light,amber for high speed engines).

- 8.244 - 9.00 0.40 2.25% 0.30

Diesel Oil (ind heavy,black for low speed marine and stationery engines).

- 3.700 - - 0.40 2.25% 0.30

Other Gas Oils - 6.300 - - 0.40 2.25% 0.30

Residual Fuel oils 125 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 mixtures 10% - 16% - 0.40 2.25%

Source : Kenya Revenue Authority

LPG Market sharesJanuary - December 2011Company Market Share %SHELL 26.0TOTAL 24.1LIBYAOIL 21.7KENOLKOBIL 12.4HASHI 4.6ADDAX 3.8PREMIUM 1.5NOCK 1.0HASS 1.0GULF 0.8ENGEN 0.7FOSSIL 0.6GALANA 0.4MGS 0.2BAKRI 0.2RIVAPET 0.2AL-LEYL 0.1BANODA 0.1TROJAN 0.1KEROKA 0.1MULOIL 0.1Others 0.2Total 100.0

STATISTICS

PI Q1 2012

Documents

Transcript of PI Q1 2012