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kenolkobil returns to profit in Q1 2013
Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
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Jamani wrote:By CONSTANT MUNDA
ESSAR Oil has indicated it will not allow Kenya Petroleum Refineries Ltd (KPRL) closed before it fully recovers its investment in the facility. KPRL chief executive Brij Bansal said the firm has yet to recover its “huge” investment. When it bought the 50 per cent stake from Shell, Chevron and BP in July 2009, Essar did not disclose the transaction amount.
The firm, however, disclosed the deal included a plan to pump in between $400 and 450 million(Sh3.4 to Sh3.83 billion) to upgrade the facility. The other partner – the government – has been largely mum over the push to close the 53-year old refinery although the regulator, Energy Regulatory Commission (ERC), has said the facility was a burden to consumers. These Indian firms are making HUGE blunders in Kenya nowadays. Is it becoz Moi left with the collection bag. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Member Joined: 2/8/2007 Posts: 808
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But Seriously @vvs do you see KPRL paying up 7B? If you know the forensic audit agreement you will be in bigger LMAO. KPRL bound themselves and that is why they are throwing tantrums because they know for once their goose is cooked. MoE was Difreee so I am sure they are not amused by the state of affairs. You surely can't sign a processing agreement when you keep getting conned with each round of refining. Look Essar should just take their losses like men and walk home. This one I see it ending up with a fuel shortage end month. With mutual agreements in place, KPRL is cooked! They should just rent out storage and spare the country an unnecessary 14 bob a litre because they are not adding any value. Plus by now GoK has recouped it's investment, they can sell the scrap to Devki!
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Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
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NAIROBI, Kenya, Jun 11 – The Kenya Oil Refineries Limited (KPRL) has denied claims that the over Sh1 billion tussle between the company and oil marketer KenolKobil threatens financial stability of the refinery. KenolKobil early this year took products worth Sh1.17billion on credit from KPRL, and put the latter in a tight financial position. The oil marketer is alleged to have taken products without a valid letter of credit, against the sector regulations, and refused to pay in an effort to compensate itself close to Sh3billion it claimed to be owed by KPRL, despite a court ruling in favour of KPRL. “Business is as usual and those are just rumours. KPRL operations are going on as usual but as you know challenges will always be there and differences too. This matter is already with the Energy Ministry and the Energy Regulatory Commission,” KPRL CEO Brij Bansal told Capital FM Business. In what looked like a reprimand, KenolKobil was last month suspended from the Open Tender System (OTS) by the Ministry of Energy and Petroleum both as a buyer and a seller for four months until it clears all the debt to the Mombasa based refinery. Bansal has also denied claims that Standard Chartered Bank has threatened to pull out from a Sh30billion agreement with KPRL signed in June last year, following its financial challenges. The funds aimed at helping the refinery to switch from a toll system to a merchant system in July last year, where it now imports its own crude oil, processes it and sells to oil marketers at a profit. “We are in continued discussions with the all the stakeholders and the bank is one of them. These are our partners and remember we signed the agreement while we were in a worse financial situation,” Bansal said. The bank is said to have wanted to cancel the agreement after the oil marketers threatened to boycott from uplifting the refined products from the refinery from July this year hence further hurt KPRL’s operations. In a letter to the Office of the President dated April 19 this year, the oil marketers had complained that inefficiencies at the refinery had made processed oil products more costly than those imported directly. “The oil industry is however ready in all respects and committed to put in place the necessary measures for refined product importation into the country after June 30, to guarantee security of fuel supply for the country and the region’s requirements,” the letter read. Oil companies are currently lifting about 65,000 tonnes of products from KPRL of its monthly refining capacity of 130,000 tonnes. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Member Joined: 7/20/2012 Posts: 141
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Kausha wrote:But Seriously @vvs do you see KPRL paying up 7B? If you know the forensic audit agreement you will be in bigger LMAO. KPRL bound themselves and that is why they are throwing tantrums because they know for once their goose is cooked. MoE was Difreee so I am sure they are not amused by the state of affairs. You surely can't sign a processing agreement when you keep getting conned with each round of refining. Look Essar should just take their losses like men and walk home. This one I see it ending up with a fuel shortage end month. With mutual agreements in place, KPRL is cooked! They should just rent out storage and spare the country an unnecessary 14 bob a litre because they are not adding any value. Plus by now GoK has recouped it's investment, they can sell the scrap to Devki! Well summarized and to the point.
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Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi
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dunkang wrote:Jamani wrote:By CONSTANT MUNDA
ESSAR Oil has indicated it will not allow Kenya Petroleum Refineries Ltd (KPRL) closed before it fully recovers its investment in the facility. KPRL chief executive Brij Bansal said the firm has yet to recover its “huge” investment. When it bought the 50 per cent stake from Shell, Chevron and BP in July 2009, Essar did not disclose the transaction amount.
The firm, however, disclosed the deal included a plan to pump in between $400 and 450 million(Sh3.4 to Sh3.83 billion) to upgrade the facility. The other partner – the government – has been largely mum over the push to close the 53-year old refinery although the regulator, Energy Regulatory Commission (ERC), has said the facility was a burden to consumers. These Indian firms are making HUGE blunders in Kenya nowadays. Is it becoz Moi left with the collection bag. Essar came in 2009. Was moi still president in 2009? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi
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Kausha wrote:But Seriously @vvs do you see KPRL paying up 7B? If you know the forensic audit agreement you will be in bigger LMAO. KPRL bound themselves and that is why they are throwing tantrums because they know for once their goose is cooked. MoE was Difreee so I am sure they are not amused by the state of affairs. You surely can't sign a processing agreement when you keep getting conned with each round of refining. Look Essar should just take their losses like men and walk home. This one I see it ending up with a fuel shortage end month. With mutual agreements in place, KPRL is cooked! They should just rent out storage and spare the country an unnecessary 14 bob a litre because they are not adding any value. Plus by now GoK has recouped it's investment, they can sell the scrap to Devki! 1) I agree with you BUT... 2) KPRL has huge assets including storage tanks coveted by many OMCs. See how fast the Triton tanks were snapped up by Vitol. I am sure Essar loves the idea of getting residual assets. 3) Land. Land. Land. I think KPRL is the largest landowner in Changamwe. Residual assets. 4) Scrap metal  Sumra will move to Mombasa! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi
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Workers protest over plans to close Mombasa refinery http://www.businessdaily.../-/k71layz/-/index.html
So what does it matter if KK is suspended from OTS? Even other OMCs can't collect stocks from KPRL while the workers are on strike & the refinery is closed for business?  Workers at east Africa's only oil refinery on Kenya's Indian Ocean coast protested on Wednesday and blocked the entrance to the plant over reports the facility may be closed."We are not going back to work until we receive assurance from the government that this plant will not be closed," said Raphael Olala, the coast branch secretary of the Kenya Petroleum Oil Workers Union. Give them the rope to hang themselves. Then fire them for not working. "The government is taking the refinery issue for granted, not knowing the consequences of what a shutdown could do to the economy," he added. Make it better by saving Kenyans Shs 5bn/year. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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This is becoming an ugly show with a bad economical outcome if it spins out of hand. Meanwhile the essar stock out there looks poised for a large selloff based on the 1yr chart pattern. http://economictimes.ind...tocks/companyid-9179.cms$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote:mwekez@ji wrote:Reading KK was suspended end of last month from Open Tender System. @VVS, et al, ni-nini Not sure of the genesis but it seems that KK suing KPRL for Shs 3.1bn has pissed them off. Anyway, let's see what happens in 19 days. The other OMCs have refused to sign off-take agreements for the next year. Without customers, KPRL is as good as dead. As a dying horse's last kicks, nyoike is trying to bother KK (as a gnat does) by using the MoE & ERC to suspend KK from the OTS. KK probably claims the products it took from KPRL are those it is owed per the Deloitte audit. As a shareholder, I support KK's claim Now KenolKobil seeks ERC’s help in oil supply row According to a letter directed to ERC director general Kaburu Mwirichia, dated May 30, KenolKobil terms the decision by the Ministry of Energy to lock it out of the open tender system (OTS) for procurement of fuel products as “unjust” treatment. It questions the ministry’s mandate to carry out the directive. http://www.nation.co.ke/busines...10/-/t6nbeg/-/index.html
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Quote:Kenya may face a “spike” in gasoline costs and a shortage next month because of a dispute between fuel retailers and the country’s only refinery, said Vivo Energy Kenya Ltd. Managing Director Polycarp Igathe. Ten fuel-marketing companies have refused to adhere to a rule that they purchase 40 percent of their fuel needs from the refinery, the Oil Industry Supply Coordination Committee said in a letter sent to Kenya Petroleum Refineries Ltd., or KPRL. The April 19 letter from the committee, which represents companies including KenolKobil Ltd., Total Kenya Ltd. and Nairobi-based Vivo Energy, the three biggest fuel suppliers by market share, was forwarded to Bloomberg by two of its members. From July 1, “fuel supply into Kenya is at risk and perhaps supply costs will spike due to an increase in demurrage costs as all players import their product needs,” Igathe said in an interview on June 14 in Nairobi, the capital. Offloading at the port in Mombasa may be delayed as multiple companies import instead of only KPRL, he said. http://www.businessweek.com/new...rise-from-july-vivo-says Bloody thieves these OMCs. They said its more expensive to get fuel via KPRL and now when their wish of bypassing KPRL is about to be granted they start saying that its going to cost us more if they dont import via KPRL
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kenolkobil returns to profit in Q1 2013
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