Page 13 - AfrOil Week 03 2022

AfrOil POLICY AfrOil

Irregularly imported gasoline

cargo causes dispute in Kenya

KENYA FUEL marketers have asked Kenya’s energy decisions made by a few oil marketing com-
regulator to exclude a cargo of 30,000 tonnes of panies (OMCs),” Salaad said in a letter sent to
gasoline privately imported from the schedule EPRA’s director-general Daniel Kiptoo.
of monthly pricing. The OMAK head sent a copy of the letter
The Oil Marketers Association of Kenya dated January 13, 2022 to Petroleum Cabinet
(OMAK), representing the firms, said Gulf Secretary John Munyees, Petroleum Principal
Energy’s cargo was privately imported and Secretary Andrew Kamau and to the CEOs of
should not be included in the price computa- the fuel marketing companies.
tion by the Energy and Petroleum Regulatory On the 14th day of every month, EPRA
Authority (EPRA). “The subject remains a pri- releases the prices of gasoline, diesel and kero-
vate cargo [that] was irregularly imported into sene that will prevail for the next 30 days. When
the country in total disregard of [the] law, and international costs rise above the level that Ken-
without documented approval by Vessel Sched- yans can afford, fuel marketers are compensated
uling Committee,” said OMAK chairman Abdi using proceeds from the stabilisation fund to
Salaad. cover the difference between the prices EPRA
The disputed cargo of gasoline , which was sets and the global cost.
imported in December 2021 by Gulf Energy “As per OTS agreement clause 14.3 (b),
aboard MT. Jag Prearana and allowed to dis- demurrage caused by a vessel that is not deliv-
charge at the port of Mombasa, led to delays with ering OTS cargo cannot be considered. The
offloading fuel tankers that had been scheduled importer of this cargo and the beneficiaries
for earlier emptying. should therefore be held responsible for result-
Refined gasoline, diesel and dual-purpose ant demurrage on the affected OTS cargoes,”
kerosene are imported to Kenya under the cen- said Salaad. ™
tralised open tender system (OTS) overseen by
the Petroleum Ministry. A firm that has made
the lowest bid undertakes importation of one
product or all fuel grades on behalf other mar-
keters. The importer is paid by other firms.
Salaad said Gulf’s cargo of gasoline should
not be considered in pump price setting by the
regulator and for subsequent compensation by
the stabilisation fund, as it will not only set a bad
precedence but also promote illegal acts.
“The Kenyan public should not be forced The dispute concerns the cargo’s inclusion in EPRA’s regular monthly
to bear costs arising from commercial petroleum product price calculations (Image: EPRA website screenshot)

PROJECTS & COMPANIES
UOG brings Al-Jahraa 13 well on stream

EGYPT UNITED Oil and Gas (UOG) has announced choke. the AJ-13 well was tested with flow rates
the commencement of production from the Al of 897 bpd and 0.95mn standard cubic feet per
Jahraa-13 (AJ-13) development well in the Abu day of gas on a 64/64-inch choke; and 623 bpd
Sennan licence, located onshore Egypt, oper- and 0.47mmcf per day gas on a 32/64-inch
ated by Kuwait Energy Egypt. AIM-listed UOG choke.
holds a 22% working interest in the Abu Sennan The AJ-13 well is the fifth and final well in
licence. the Abu Sennan 2021 drilling programme. The
The AJ-13 well has now been tied into the ECDC-6 rig, used to drill the AJ-13 well, will
existing facilities and brought into production now move to commence the 2022 drilling pro-
at an initial rate of approximately 600 barrels per gramme, starting with the ASD-2 development
day (bpd) of oil per day gross on a 48/64-inch well, the company announced.

Week 03 19•January•2022 www. NEWSBASE .com P13