Tullow Oil seeks services of registered logistics firms

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By Ronald Owili

KBC Radio_KICD Timetable

Plans to start crude oil production from March next year is well on course with Tullow Oil seeking the services of logistics companies to transport the oil by road from Lokichar in Turkana County to Kenya Petroleum Refineries facilities in Changamwe, Mombasa County.

In the document, Tullow Oil indicates that it would target to produce at least 2,000 barrels per day under the Early Oil Pilot Scheme that was recently endorsed by the government.

Kenya’s entrance in the league of oil producing countries comes at a period when global crude oil prices have taken a beating from a high of 110 in mid 2014 to the current 52 dollars a barrel.

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It is only recently that prices begun firming up from a low of 27 dollars a barrel recorded early this year.

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While this has been good for net importers such as Kenya which has enjoyed low fuel prices and a drop in the import bill, beginning production in Mach next year might not be all merry after all for a country eyeing revenue from crude oil exports.

Under the Early Oil Pilot Scheme, Kenya is set to produce 2,000 barrels of oil per day which in turn will be transported by road to Kenya Petroleum Refineries Limited storage facilities in Changamwe, Mombasa County.

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Here the crude oil would be accumulated before being shipped out starting June next year.

To facilitate this, Tullow Oil is seeking specialized containers and trucks to be used to transport the crude oil to Changamwe.

This will be under a leasing deal to be signed between the British firm and two companies offering the specialized containers as well as trucks to transport the oil.

Firms seeking the logistics tender are required to have at least three years of transportation experience in Kenya, two of which be of transporting hazardous and high value freight in Kenya or East Africa.

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They are also required to have the financial muscle or ability to secure funding to meet the requirement of the deal.

Tullow Oil is seeking to lease on a two year deal, 100 insulated containers with a capacity of 25,000 liters.

Companies interested in supplying this service must be committed to delivering a high level of local content through subcontracting in the area of operation as well as support capacity building through provision of a driver training programme.

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