Page 12 - AfrOil Week 12 2023

AfrOil POLICY AfrOil

In exchange for these bribes, Alison-Madueke and to shell companies he controlled.
made certain that oil contracts worth more than As part of the forfeiture process, the lien
$100mn were awarded to companies owned by holders were paid.
Aluko and Omokore. In its statement, the DOJ noted that the case
Subsequently, the proceeds of these illicitly had been investigated by the International Cor-
awarded contracts were laundered through US ruption Squad of the Federal Bureau of Inves-
financial institutions and utilised to purchase tigation, as well as a division of the Internal
various assets through shell companies. These Revenue Service (IRS).
assets included the Galactica Star, a 65-metre The Justice Department’s Office of Interna-
yacht, and luxury real estate in California and tional Affairs and the US Attorney’s Office for
New York. In turn, the real estate also served as the Southern District of Texas also provided
collateral for loans that were granted to Aluko substantial assistance, it reported. ™

Kenya to pay for fuel with shillings

KENYA KENYA has signed an agreement with Saudi expiration of the term.
Aramco, Abu Dhabi National Oil Co. (ADNOC) It is hoped that the credit will decrease
and Emirates National Oil Co. (ENOC) to allow demand for the US dollar and ease pressure on
for the purchase of petroleum products in Ken- foreign exchange reserves, which have been at
yan shillings owing to a shortage of foreign their lowest levels in more than a decade. With
exchange. the help of the agreement, Kenya aims to import
As the Kenyan government struggles with 3.87-4.23mn tonnes of diesel, 3.06-3.42mn
dollar shortages, businesses importing goods tonnes of gasoline and 810,000-900,000 tonnes
– such as fuel marketers and manufacturers – of jet fuel before the end of the year.
have had to pay more US dollars than the official The Kenyan fuel sector had previously
exchange rate set by the Central Bank of Kenya needed around $500mn per month to purchase
(CBK). 740,000 tonnes of products, which now equates
Nairobi has addressed this by signing for to around KSH64bn ($484mn) after the shilling
the supply of petroleum products from the hit a new low on March 27.
three Gulf majors on credit for a period of nine Energy and Petroleum Cabinet Secretary
months, with an extra six-month extension. Davies Chirchir was quoted last week as say-
Under the deal, monthly deliveries of fuels ing: “The product will now be paid for in Ken-
from each company will commence, with Ara- yan shillings and this will ensure the dollar is
mco and ADNOC providing diesel, ADNOC available for other sectors of the economy.” He
importing kerosene and ENOC supplying gas- added: “The proposed transaction is expected to
oline. The deal stipulates that local fuel suppli- alleviate the demand for dollars driven by petro-
ers, known as oil marketing companies (OMCs), leum imports by extending the time required to
will be placed in charge of managing the collec- source for the dollars from the current five days
tion of funds, which will then be paid after the to 180 days.” ™

PROJECTS & COMPANIES
Cheiron launches early production

facility at GNN oilfield in Gulf of Suez

EGYPT CHEIRON Energy, Egypt’s largest independ- a mobile offshore production unit, as well as a
ent upstream oil and gas company, reported on 10-inch (254mm) crude oil export pipeline that
March 27 that it had launched an early produc- is connected to the existing Geisum Star pro-
tion facility (EPF) at its GNN oilfield in the Gulf duction complex via tie-backs.
of Suez. GNN is located in the Geisum and Tawila
According to a company statement, the EPF West Concession. Cheiron owns a 60% working
has been installed in the central area of the field. interest in this asset via its PICO GOS affiliate
It includes a conductor support platform and and also serves as operator.

P12 www. NEWSBASE .com Week 13 30•March•2023