African and Kenya Oil and Gas News

Updates from July, 2013

• Uganda Builds New Refinery, Kenya Upgrades. VENTURES AFRICA – Plans to construct a new refinery in Uganda and upgrade an existing one in Kenya are already afoot, according to an oil and gas analyst.
• Demand was seen from east Africa, with Tanzania’s Petroleum Importation Coordinator (PIC) likely to buy August-delivery products through tender from trading firm Augusta Energy.
submitted the lowest weighted average differentials among five offers for gasoline, gasoil and jet-kerosine, at a $44.874/t premium to a combination of Mopag and Mediterranean spot quotes. PIC’s tender called for a 100,590t cargo of 91R gasoline for delivery to Dar es Salaam. The gasoline component in Augusta’s weighed average quote was at a premium of $46.88/t to Meditteranean quotes, the second lowest behind trading firm Vitol’s $42.50/t. Trading firms Swiss Singapore, Glencore and Gapco Tanzania also participated in the tender.
• Six consultancies shortlisted for Algerian oil field development – Sonatrach to tender front-end engineering and design of Hassi Messaoud peripheral fields.
• Wood Group Wins Subsea Gig at BP Offshore Projects in Angola.

• Kenya is expected to soon issue a tender for August and September gasoline. The country’s energy ministry last bought a 362,000 bl cargo of gasoline from trading firm Gulf Energy at a discount of $11.70/t to Mediterranean quotes for 13-15 July arrival, and another 362,000 bl cargo at a discount of $8.70/t for delivery on 23-26 July.
• Oil & Gas Africa – The Gateway to the East African Oil & Gas Industry – Kenya has attracted oil & gas companies not only because of its ports and strategic location but also because the government is keen not to be left out of the exploration.
• Tullow Oil has confirmed commercial viability of Kenya’s oil and announced that it will start negotiations with the Government on development and production.