Off-shore Company Primefuels Holdings Gets Lion’s Share In Turkana Oil Transportation Deal

Primefuels Holdings Limited, a Guernsey Channel Islands-based haulier company is one of the companies that will reap big in the Turkana oil transportation deal.

Through its subsidiary in Kenya, Primefuels Kenya Ltd, the company will net in the biggest chunk of the Ksh1.5 billion budgeted to pay transporters who include a number of Kenyan firms.

According to sources privy to the deal, the giant firm has started leasing trucks that will be used to transport crude oil from Turkana for exportation.

The government intends to use at least 110 insulated tankers to transport oil from Turkana. Each of the insulated containers has the capacity to carry 150 barrels, which is equivalent to about 24,000 litres of crude oil.

Read: Kenya will export crude oil at least three times in year

Initial projections indicate that 2,000 barrels will be transported daily. This will double up upon full implementation of the project, according to experts.

Oil in the poorest county in Kenya was discovered in 2012, taking the state six years to have the first batch of crude oil exported. President Uhuru Kenyatta flagged of the first four of 110 tankers.

Of the revenue received, the National Government will take 75%, the County Government of Turkana 20% while the local community gets 5%.

Parliament passed a draft bill in 2016 allocating 20% of any state oil revenue to local government and 10% to communities living where the crude was discovered, leaving 70% for the central government. However, President Kenyatta did not sign the bill and instead asked Parliament to review county and community allocations downwards.

Owing to the closure of the Kenya Petroleum Refineries in September 2013, Kenya will have to export her oil in crude form. Kenya Pipeline Company leased the Kenya Petroleum Refineries facilities to store crude oil before exportation.

Consequently, the discovery of oil in Kenya might not cure the problem of ever rising petroleum products’ prices.

Do you have a story you want told? Do you know of a sensitive story you would like us to get our hands on? Email your news TIPS to news@kahawatungu.com