Prime Fuels, Multiple Hauliers, Oilfield Movers Land Early Oil Programme Contract

Three logistics companies namely Prime Fuels, Multiple Hauliers, Oilfield Movers have been awarded the early oil pilot scheme logistics contract that will see them truck 2000 barrels a day of crude oil to the Kenya Petroleum Refineries based in Mombasa.

The three companies will each be involved in the EOPS programme with Prime Fuels leasing out insulated containers/tanktainers each having a minimum fluid capacity of 25,000 litres while Multiple Hauliers and Oilfield Movers will transport the crude oil to Mombasa starting June making Kenya the first oil exporter in East Africa.

The programme is under the Kenya Pipeline Company (KPC) which in March signed a 3 year lease agreement with Kenya Petroleum Refineries Limited (KPRL allowing Kenya Pipeline to use the facilities of KPRL for the Early Oil Pilot Scheme Project.

The project has been criticized as a mere public relation exercise by pundits due to its loss making status although the government has defended the decision saying it will provide much needed technical well data  ahead of the full field development stage.

The award also follows the signing of an agreement between the Kenyan government and the joint venture partners namely Tullow Oil, Africa Oil and Maersk Oil and Gas in March.

The three firms will over a three year period transport over two million barrels of oil from Lokichar via road with the three year contracts valued at an estimated 1.5 billion shillings.

Trucking is expected to commence later this month with the first offloading for export expected in Mid June.