WE’VE NO CAPACITY TO BUILD OUR OWN CRUDE OIL REFINERY.
1)Our crude Oil deposits are insufficient to justify construction of a refinery.
(A) Tullow Oil estimates contains an estimated 560M barrels. Tullow says that this translates to 60,000 to 100,000 barrels per day.
(B)According to experts,a refinery would make money when it has a refining capacity of of at least 400,000 barrels per day.
2)We used to have an oil refinery at Mombasa. To be upgraded for our Tullow Oil, the refinery needed over 200B. That was in 2013. Plans were abandoned on the advice of consultants who said it wasn’t economically viable. The government converted it into a storage facility.
If Kenya was to construct a modern OIL REFINERY in 2020,it would cost us over 350B! Devolution alone eats just 330B per year!
Today, we exported our first consignment of of over 200,00 barrels of low sulphur petroleum worth 1.2B!
Constructing a refinery for over 350B to refine oil worth 1.2B is like constructing a godown worth 10M to store a packet of salt which is worth 5 Bob.
As President Uhuru said, this is a milestone for Kenya. We’re not there. But one day, we’ll be there.
#First Country to export Oil in East Africa.