The Kenyan government has directed state-owned Kenya Pipeline Company (KPC) to acquire and revive operations in an obsolete petroleum refinery owned by Kenya Petroleum Refinery Limited (KPRL). KPC is currently seeking a transaction advisor to guide the company during the takeover, Engineering News reported.
As the government plans to use the refinery to store crude oil expected from South Lokichar in northwest Kenya, KPC carried out technical diligence on the Mombasa-based plant’s storage tanks and loading facilities. KPC’s Corporate Communications Manager, Jason Nyantino, said: “KPRL storage tanks and refined fuel loading facilities were found to be in good condition,” according to All Africa.
The Kenyan refinery, which is over five decades old, has been lying idle since Indian company Essar Energy decided to sell its 50% shareholding to its equal partner, the Kenya government. Essar Energy announced it was quitting the joint venture on the basis that the facility was not economically viable in the current environment.