In Kenya a bid to take over a fugitives shilling oil terminal has been lost by the state-owned oil company, and awarded to Switzerland-based storage player Vitol Oil.
National Oil Company of Kenya (Nock) was in talks to take over the terminal owned by a former oil magnate turned fugitive, but the major creditors of Triton-Kenya Commercial Bank, Fortis Bank Nederland NV and PTA Bank, awarded the incomplete oil stores at Kipevu near Mombasa to Vitol Oil.
Sources says Nocks bid at $9.4 million (6.5 million) was $100,000 less than Vitols but the banks did not approve of Nocks conditions for acquiring the assets which included an undertaking that the ongoing cases arising from the closure of Triton Petroleum would not expose it to new liabilities.
The government wants ownership of the facility to enhance Kenyas strategic fuel storage capacity.
Uganda, Rwanda and Tanzania currently are building strategic fuel storage tanks, and Kenya says it risks losing its hub status in the regional oil market if it does not expand its strategic fuel storage capacity.
The facilities provide a sound investment opportunity for those looking to secure independent tank capacity to serve East African countries.
The close proximity of the Triton facilities to the national storage tanks at the Kipevu Oil Storage Facility (Kosf) is also a plus, with truck loading facilities currently offered at a storage facility near Shimanzi, jointly owned by OiLibya, Total and KenolKobil.