This archive report was first published on 28 August 2019.
On August 28, 2019, Kenya's government revealed that ChemChina UK Limited had evacuated 240,000 barrels of crude oil from the country, contradicting initial claims of 200,000 barrels sold to the UK-based Chinese firm.
According to Petroleum Principal Secretary Andrew Kamau, the crude oil purchasing agreement allows buyers to evacuate more or less sales volume than initially contracted.
‘The crude oil purchasing agreement allows a buyer can evacuate more or less sales volume than contained in the initial contract,’ said Kamau in a statement.
At the initial sale price of USD60 per barrel, the 40,000 barrels could have netted the Kenyan government an additional Ksh.247 million.
However, the earnings from the first sale of crude remain at the earlier pronounced Ksh.1.2 billion ($12 million), which will be channeled towards footing oil exploration costs estimated at Ksh.309 billion ($3 billion).
ChemChina UK Ltd shipped the crude oil to Malaysia for refining, sparking concerns about the revenue sharing contract between the government and its oil exploring partners in Turkana.
