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Uganda:The Sly Mistress
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Obi 1 Kanobi
#11 Posted : Friday, April 29, 2016 10:18:17 AM
Rank: Elder

Joined: 7/23/2008
Posts: 3,017
What I don't understand is why we have to build a pipeline to export the oil. Its really not much right now. Why not process the crude somewhere in the rift.

We can't relocate the refinery from Mombasa to Turkana/Elgeyo Marakwet and just process the oil.

I especially don't like the idea of carrying crude on road/rail to Mombasa for export, by the way we are exporting to who?

Unless we can export upwards of 400,000 BPD, we should not bother.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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AceWesh
#12 Posted : Friday, April 29, 2016 10:50:30 AM
Rank: Hello

Joined: 4/21/2016
Posts: 2
Location: Nairobi
Although am not an oil expert the refinery at Changamwe is obsolete and so we would have to start from scratch to build a new refinery for which the costs are too high unlike Uganda which has a sponsor in the French giant Total.
Getting a customer for an occational tanker-full of crude oil cannot be that hard especial in the Asian markets of akina China and South Korea that have large and efficient refineries.
I am pretty sure if Uganda starts to refine its own crude oil we will not have to buy from them that much because GAPCO Kenya will still be able to import refined products from their owners in India at very low prices.
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  | | Edit by user: Friday, April 29, 2016 10:52 AM | Reason: typo
Obi 1 Kanobi
#13 Posted : Friday, April 29, 2016 12:20:24 PM
Rank: Elder

Joined: 7/23/2008
Posts: 3,017
AceWesh wrote:
Although am not an oil expert the refinery at Changamwe is obsolete and so we would have to start from scratch to build a new refinery for which the costs are too high unlike Uganda which has a sponsor in the French giant Total.
Getting a customer for an occational tanker-full of crude oil cannot be that hard especial in the Asian markets of akina China and South Korea that have large and efficient refineries.
I am pretty sure if Uganda starts to refine its own crude oil we will not have to buy from them that much because GAPCO Kenya will still be able to import refined products from their owners in India at very low prices.


Refineries built 100 years ago are still in use in parts of the world.

Also the fact that ESSAR bought the refinery less than 10 years ago suggests its still useable,

The issue was that the cost of landed refined petroleum was lower than that of buying crude, shipping it over here and refining it.

But as we have our own crude, surely the refining costs even if inefficient should still be lower than importing the finished stuff.

My 2 cents.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Swenani
#14 Posted : Friday, April 29, 2016 12:34:44 PM
Rank: User

Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
Obi 1 Kanobi wrote:
AceWesh wrote:
Although am not an oil expert the refinery at Changamwe is obsolete and so we would have to start from scratch to build a new refinery for which the costs are too high unlike Uganda which has a sponsor in the French giant Total.
Getting a customer for an occational tanker-full of crude oil cannot be that hard especial in the Asian markets of akina China and South Korea that have large and efficient refineries.
I am pretty sure if Uganda starts to refine its own crude oil we will not have to buy from them that much because GAPCO Kenya will still be able to import refined products from their owners in India at very low prices.


Refineries built 100 years ago are still in use in parts of the world.

Also the fact that ESSAR bought the refinery less than 10 years ago suggests its still useable,

The issue was that the cost of landed refined petroleum was lower than that of buying crude, shipping it over here and refining it.

But as we have our own crude, surely the refining costs even if inefficient should still be lower than importing the finished stuff.

My 2 cents.


True, Keter has claimed that we shall starting exporting 2,000 barrels(yes, a mere 2000 ) of crude oil by early next year by use of road(Lokichar-Eldoret) and Rail(Eldoret-MSa). Why can't we refine the oil for internal consumption if its 2000 barrels per day?
If Obiero did it, Who Am I?
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wanyee
#15 Posted : Friday, April 29, 2016 1:55:52 PM
Rank: Member

Joined: 7/17/2011
Posts: 627
Location: Mbui-Nzau, Kikumbulyu
AceWesh wrote:
Although am not an oil expert the refinery at Changamwe is obsolete and so we would have to start from scratch to build a new refinery for which the costs are too high unlike Uganda which has a sponsor in the French giant Total.
Getting a customer for an occational tanker-full of crude oil cannot be that hard especial in the Asian markets of akina China and South Korea that have large and efficient refineries.
I am pretty sure if Uganda starts to refine its own crude oil we will not have to buy from them that much because GAPCO Kenya will still be able to import refined products from their owners in India at very low prices.

A refinery would be a real coup on this even better if it's built in say Eldoret or Lodwar or Samburu but also Kenya can go rogue and create vuguvugu in tz ..lindi mtwara and Pemba have pirates block any oil ever leaving Tanga anyway..too many options
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Swenani
#16 Posted : Friday, April 29, 2016 2:13:11 PM
Rank: User

Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
wanyee wrote:
AceWesh wrote:
Although am not an oil expert the refinery at Changamwe is obsolete and so we would have to start from scratch to build a new refinery for which the costs are too high unlike Uganda which has a sponsor in the French giant Total.
Getting a customer for an occational tanker-full of crude oil cannot be that hard especial in the Asian markets of akina China and South Korea that have large and efficient refineries.
I am pretty sure if Uganda starts to refine its own crude oil we will not have to buy from them that much because GAPCO Kenya will still be able to import refined products from their owners in India at very low prices.

A refinery would be a real coup on this even better if it's built in say Eldoret or Lodwar or Samburu but also Kenya can go rogue and create vuguvugu in tz ..lindi mtwara and Pemba have pirates block any oil ever leaving Tanga anyway..too many options


Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly

Or sponsor alshabaab to blow the tanga pipelineSad Sad Sad
If Obiero did it, Who Am I?
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iris
#17 Posted : Friday, April 29, 2016 2:46:40 PM
Rank: Member

Joined: 9/11/2014
Posts: 228
Location: Nairobi
And now the true colours of Wanyee and Swenani..
Perhaps m7 is aware of this side of us and Maghufuli offered a breath of fresh air.
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geofreygachie
#18 Posted : Monday, May 16, 2016 9:39:06 PM
Rank: Member

Joined: 2/27/2014
Posts: 454
Location: Republic of Enchantment.
Rwanda dumps Kenya SGR route for Tanzania
Divers - can you laugh in scuba gear, or will you drown? I was wondering. - James May.
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sitaki.kujulikana
#19 Posted : Monday, May 16, 2016 10:08:19 PM
Rank: Veteran

Joined: 8/25/2012
Posts: 1,826
geofreygachie wrote:
Rwanda dumps Kenya SGR route for Tanzania

makes more sense for them, especially with Magufuli in power, he seems like the kind of guy who ensures efficiency.
One also has to give it to the tanzanians, politically they are stable, election are done with and dusted, hapa Kenya its politics 24/7.
If Magufuli pushes with the education reforms in tz, they will get what we beat them at, human resource, tutabaki na siasa zetu.
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Ericsson
#20 Posted : Tuesday, May 17, 2016 7:55:10 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,809
Location: NAIROBI
In Kenya banditry is the order of the day
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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