Page 14 - Downstream Monitor - MEA Week 34

DMEA
neWs in brief
DMEA
in court – with accusations making and implementing critical decisions without the board’s approval.
Based on unceremonial exits of former MDs at the giant corporation, it is clear on
the major hurdle ahead for the board which is required to hire a competent individual with su cient experience in management and high integrity to be able to steer the organization from the corner o ce.
e current acting MD at Kenya Pipeline is Hudson Andambi, who took over from Sang when he was arrested and charged. ngumi is a state witness in the case.
“ e managing director’s term expired
in April and we have an acting MD to be in place until October. At the same time we have been putting together the terms for the new CEO and they are ready,” said John ngumi, KPC’s board chairman, at an interview with e Standard newspaper in July before the advertisement was placed, “We will be going to the market shortly for an MD. We want to advertise in July and conclude the process in October,”
Sang had taken over from Flora Akoth who led the organization in a one-year short stint before she was sent on compulsory leave. She had taken over from Charles Tanui in 2015 who was sacked by the board over the irregular award of a Sh29 million tender for the installation of auto-transformers, having taken over from Selest Kilinda in May 2013.
Tanui would later end up in court charged with abuse of o ce, including the irregular award of Sh647 million for the supply of Hydrant pit valves used in aircra fueling at Jomo Kenyatta International Airport.
Others are george Okungu in 2009, Dr Shem Ochuodho in 2005, Dr Linus Cheruiyot in 2004 and Ezekiel Komen.
In 2013, Kilinda was red a er an internal audit report showed that he had employed family members, in contravention to government regulations.
It was Okungu who took over from him, but was sacked too in 2009 for accusations of in ating a contract for the upgrade of a pipeline from nairobi to Mombasa. CaPitaL fm
Iraq to construct new oil
pipeline from Kirkuk to
Turkey
Iraq plans to build a new pipeline to transport crude oil from the disputed province of Kirkuk to Turkey, Iraq’s oil minister said on Wednesday.
Iraqi Oil Minister amer al-ghadhban made the remarks in a press conference following meetings between Fatih Dönmez, Turkey’s Minister of Energy and natural Resources, his Iraqi counterpart, and several other o cials.
ghadhban said Wednesday’s meeting was a follow-up to Iraqi Prime Minister Adil Abdul Mahdi’s meeting and agreement with Turkish President Recep Tayyip Erdogan in Turkey earlier this year.
“ e meeting focused on strengthening ties between the two countries and developing economic and trade connections, especially in the energy sector with gas, oil, and electricity,” he added.
In his announcement, the oil minister also mentioned Iraq’s intention to build a new pipeline to transfer crude oil from Kirkuk to the borders of Turkey.
e main pipeline the Iraqi government used to transport some 600,000 barrels
per day (bpd) from Kirkuk to Ceyhan was rendered inoperable in 2014 a er the so- called Islamic State targeted it.
“We discussed many areas of cooperation including a possible electricity connection between the two countries,” ghadhban stated.
e minister also emphasized the strategic importance of the pipeline, which could become an alternative a er “regional developments threatened the current oil transportation path through the gulf.”
e new pipeline is set to go through the Kurdistan Region parallel with the Kurdistan Regional government’s (KRg) pipeline that is currently being used to transport oil from Kirkuk to Turkey’s Ceyhan port.
On nov. 16, 2018, the Federal government of Iraq restarted exports of Kirkuk oil to
Turkey through the Kurdistan Region’s oil pipeline at a rate of around 50,000 bpd.
Iraq is the Organization of the Petroleum Exporting Countries’ (OPEC) second-largest producer just a er Saudi Arabia and currently has an output below its maximum capacity of nearly ve million bpd.
KUrdistan24
terminaLs & shiPPing
DP World partners with CCC to develop ‘traders market’
DP World PLC has announced a partnership with Zhejiang China Commodity City group Company LTD (CCC) to develop the ‘Traders Market’ in Jebel Ali Freezone (JAFZA). DP World will hold a majority share in the 70/30 joint venture. e Traders Market project will span approximately 800,000 square metres, with Phase 1 development covering about 220,000 square metres. Phase 1 Capex is estimated at $150 million, with construction expected to start in 4Q2019 and take 24 months to complete.
e Traders Market will create the rst smart Freezone market place in the Middle- East for the retail and wholesale industries and aims to serve the wider region with a population base of over 2 billion. e market will allow traders to bene t from lower supply chain costs by using the world-class multi- modal infrastructure available in Jebel Ali and Dubai. International traders will be able to procure bulk products in Dubai at wholesale prices with the shortest delivery times and will be able to service demand more e ciently.
Established in 1993, Zhejiang China Commodity City group, based in Yiwu, in the Zhejiang district of China, is a leading developer and operator of merchandise trading platforms. CCC’s operations include the Yiwu Permanent Fair, China Yiwu International Commodities Fair and Yiwu Imported Commodities Fair. ese marketplaces span an area of some 5 miles with approximately 75,000 traders and
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Week 34 29•August•2019