Kenya Pipeline Company (KPC) and Kenya Petroleum Refineries Limited (KPRL) today signed a 3 year lease agreement allowing Kenya Pipeline to use the facilities of KPRL for the Early Oil Pilot Scheme Project.
The Early Oil Pilot Scheme Project is a government initiative aimed at exploration and marketing of crude oil that will place Kenya as an oil exporter.
Witnessing the signing of the agreement, Energy Cabinet Secretary Charles Keter praised both parties for agreeing to work together in order to elevate Kenya’s economic status.
He asked the KPC and KPRL parties to work together to ensure the Early Oil Pilot Scheme begins as scheduled.
Mr Keter also asked the Kenya Pipeline management team to take care of the KPRL staff as the lease states that no staff from KPRL should have their employment terminated.
He said: “I want to remind you that we are one. We serve the same government, we serve the same institution. I am happy that we are able to begin the Early Oil Pilot programme. I want to ask the Chairman of KPC to take care of the KPRL staff.”
Mr Keter asked both parties to take their work seriously or they will face the sack. He also said that the government will monitor their work progress to everything runs smoothly.
He added: “The time of writing letter has lapsed, I want us to begin working. I take my work seriously and whoever does not do the same will be dismissed. I may accompany the President on his tour of the Coast and check in to see if you are working.”
Mr Keter pointed out that the facilities of KPRL are beneficial for the country’s oil stock level and its strategic placing enables Kenya serve a number of countries in Eastern Africa.
He said: “The KPRL is beneficial in that it will boost Kenya’s oil stock levels. Initially our stock level was 3 days. Now we have 12 days and we need to increase it to 30 days; since we rely heavily on oil importation. This will enable us plan ahead for the open tender system which will make oil prices cheap.”
He added: “Kenya is also strategically place and we serve counties like Rwanda, Burundi, Democratic Republic of Congo, Uganda, South Sudan through the Port of Mombasa.
Dismissing reports that Kenya Pipeline is taking over KPRL, Kenya Pipeline Managing Director Joe Sang, said that the leasing of the KPRL facilities is set to support the Government efforts in Early Oil Pilot project, taking oil from Lake Turkana and rehabilitating the facilities to enable KPRL receive the oil and ready it for shipping.
Managing Director, KPRL Charles Nguyai said that the lease agreement ensures that their facilities are properly utilized and that all employees of KPRL will be seconded to Kenya Pipeline and it will also create more employment.