Monday, Jul 13, 2020
HomeBusinessChinese firm to buy Kenya’s first Ksh.1.2 billion crude oil

Chinese firm to buy Kenya’s first Ksh.1.2 billion crude oil

Chinese firm ChemChina UK Limited has been selected as the buyer of Kenya’s first crude oil export.

In an announcement, the government, together with Tullow Oil and its joint venture partners said the firm beat other bidders to the oil.

“ChemChina UK LTd was selected following a competitive tender process… an invitation to bid was issued to prospective buyers on 26th July 2019,” said the statement.

Two weeks ago, President Uhuru Kenyatta made the announcement of the sale revealed that the government sold the 200,000 barrels at a cost of Ksh.1.2 billion.

“I think we have started the journey and it is up to us to ensure that those resources are put to the best use to make our country both prosperous and to ensure we eliminate poverty,” said Mr. Kenyatta.

ChemChina UK beat seven other bidders said to be international firms representing European and Asian refineries..

The sale completes the first leg of Kenya’s prospects in crude oil production. In July 2018, Kenyatta flagged off the first consignment of crude oil from the Lokichar oil fields in Turkana County.

Tullow Oil would then truck 240,000 barrels of the product for storage at the Kenya Petroleum Refineries in Changamwe Mombasa County.

ChemChina UK Ltd is expected to begin shipping out the crude out of Mombasa next week.

POST TAGS:
FOLLOW US ON:
Keroche bosses to be
“Revise Interest c

Digital Desk, Metropol TV

Rate This Article: