Kenya shops for new Mombasa refinery partner
The Government is considering inviting bids for a new investor for region’s only oil refinery, or converting it into a storage plant, after co-owner India’s Essar Energy said it plans to exit, officials revealed Friday. Essar said in October it would sell its 50 per cent stake in the Mombasa plant after its plans for a $1.2 billion upgrade were abandoned on the advice of consultants who said it was not economically viable. Linus Gitonga, the director of petroleum at the Energy Regulatory Commission, Kenya’s energy regulator, said once Essar’s exit is finalised by November 26, the government would take full ownership of the refinery and weigh its options.
Kenya fuel imports to grow a third over next two years
Kenya's diesel and gasoline imports are set to rise by a third over the next two years, driven by a growing auto fleet and rising industrial activity amid a lack of refining capacity, the head of the country's state oil company said Thursday.
Operations at East Africa's only refinery, in Mombasa on Kenya's southeast coast, were halted this year after co-owner India's Essar Energy and the government disagreed on expansion plans for the plant.
Africa's overall refining capacity has also failed to keep up with the continent's rapidly growing appetite for fuel products, prompting trading houses such as Trafigura, Vitol and Gunvor to invest heavily in expanding their operations on the continent in recent years.
Africa Oil announces fifth oil discovery in Kenya
Africa Oil announced that the Agete-1 exploration well in Block 13T, onshore Northern Kenya, has discovered and sampled moveable oil with an estimated 100m of net oil pay in good quality sandstone reservoirs.
The Agete-1 wildcat well is part of a major exploration campaign and has made the fifth consecutive oil discovery in the first of a chain of multiple rift basins across Africa Oil's acreage in the region.
This discovery de-risks several follow-on prospects located to the north and on trend with the Twiga South, Ekales, and Ngamia oil discoveries and adds to the significant resource base already discovered.
Recent discoveries in Kenya highlight oil and gas potential
Kenya’s run of geologic luck continues, following the announcement of the country’s fourth consecutive discovery of oil by the UK's Tullow Oil and Canada's Africa Oil. Similarly, while activity in the natural gas sector is proceeding at a slower pace, following the recent departure
