Kenya forgoes Ksh.247 million in first-oil sale discount

ChemChina UK Limited evacuated 240,000 barrels of crude oil from Kenya.

The new figure emerging even though government officials initially indicated that only 200,000 barrels had been sold to the UK based Chinese firm.

The move putting into questions the fate of the 40,000 barrels and if Kenya received any money for it

Speaking to Citizen Digital, Petroleum Principle Secretary Andrew Kamau acknowledged the shipment of the 240,000 barrels.

“The crude oil purchasing agreement allows a buyer can evacuate more or less sales volume than contained in the initial contract,” said Kamau.

Factoring the cost of the crude at the initial sale, the 40,000 barrels could have netted the exchequer an additional Ksh.247 million. Each barrel was sold at USD60 or an equivalent of Ksh.6180.

Earnings from the first sale of crude therefore substantially remain at the earlier pronounced Ksh.1.2 billion ($12 million).

The funds, the government said will be channeled towards the footing of oil exploration costs which are currently estimated at Ksh.309 billion ($3 billion).

The discount on Kenya’s first oil exports sits in the shadow of a tight-lided revenue sharing contract between the government and its oil exploring partners in Turkana.

ChemChina UK Ltd shipped the crude oil to Malaysia for refining.