This archive report was first published on 1 October 2019.
On September 30, 2019, the Celsius Riga left the Mombasa port with 240,000 barrels of oil worth Ksh1.2 billion ($12 million), destined for refining in Malaysia. However, the details surrounding Kenya's first oil sale remain unclear, with the government choosing to keep important information under wraps.
The government's reluctance to disclose details about the sale has raised eyebrows, particularly given the significant amount involved. Just a day before the news broke, the government had failed to name the buyer, citing a 'non-disclosure agreement.'
Tullow Oil, the firm responsible for discovering commercial oil reserves in the Lokichar basin, Turkana, has insisted that a bidding process took place, with seven bidders expressing interest. However, the company has declined to provide further details on the bidders or their respective bids.
Contradicting Tullow Oil's claims, the Ministry of Mining and Petroleum later stated that eight bidders had participated in the process. Petroleum Principal Secretary Andrew Kamau, who had initially promised to disclose the oil companies involved, later dismissed queries, stating, 'There is no opaqueness. You know the winning bid and you know the volume. What else is important?'
ChemChina UK Limited emerged as the winner of the crude oil bid, with the company evacuating 240,000 barrels of crude oil from Kenya. This figure contradicts the initial announcement of 200,000 barrels, further fueling speculation and concern.
A coalition of 16 civil society organizations, under the Kenya Civil Society Platform on Oil and Gas (KCSPOG), has condemned the government for its lack of transparency in the oil sale. KCSPOG coordinator Charles Wanguhu stated, 'Can you imagine if it was any other government asset that has been disposed without following transparent procurement and disposal procedures? It would cause an uproar.'
