BUSINESS and FINANCE, POLITICS and GOVERNMENT

Mombasa Refinery to Be Converted To a Storage Facility

Kenya oil refinery plant is Mombasa is set to be converted into a storage facility as Kenya steps up its plan for commercial production of oil. According to reports from inter-ministerial committee, the Kenya government has decided o use the facility to enhance its production process.

Kenya oil refinery plant in Mombasa will be converted to a storage facility as Kenya moves to increase the production of oil in the country. According to reports earlier this week by energy ministry Charles Keter, the committee from national treasury and energy ministries has come up with a strategic plan to convert the plant into a storage facility to increase the production of oil in the country. The team is coming up with a model that will help in the conversion of the plant to be one of the best storage facilities in the country. The Kenyan government is considering changing the facility’s capacity into a storage facility as Kenya gear up for its first oil production.

Kenya is need of a strategic oil reserve with the current reserve lasting the country only one week. This indicates that the production process will be affected if the country does not seek alternative storage facilities. The minister energy minister indicated that the government is looking at all options concerning the refinery as the government steps up its plan to commercialize oil production in the country. The Kenya government had set September as the first date that crude oil will be exported from the country. The first phase of the production process will be implemented using existing rail and road networks with the production starting at two thousand barrels a day before moving to ten thousand barrels per day.

However, recent reports indicate that the date has been pushed further as the government seeks to understand the oil exploration company strategies towards the production of oil in the country. Tullow plc a company vested with the oil exploration activities in Kenya said it will make its last investment in the year 2017. Market evaluation and other logistics will be analyzed before the country decides on the right platform.

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