The online community has gotten a feaces smithen stories
done by few rent-seeking bloggers that were hired by the cartels fighting
transformation and automation of services by the management of the Kenya
Pipeline company (KPC). Responsibility of cross-checking has been lost in all
instances and stories brought by these bloggers. The moral question of who
supervises blogging activity needs a serious re-checking. Regretably our
constitution gives this right to write opinions and stories to every Kenyan, we
failed to introduce how far is far on misinformations and distortions thus
created by this right. Responsible online users feel bothered and need
protection. It is a matter of time when this may happen. The optimism is it
shall happen.
KPC has been upgrading and going towards complete automation
on all its services and system to improve on pumping capacity and product
evacuation facilities so as to match the rising petroleum demand locally and in
the East African region. The cartels and many brokers that the manual working
environment has created for the many years now feel redundant and hopeless by the
managements act of blocked the leakages and ransominous situations investors
were subjected to. Obviously a win for the investors and a loss for cartels.
Demonizations of the board to earn public sympathy by misinformation is now the
tact that the desperate cartels feel as a resort and stage number one to
pressure the government into submission and place their own rouged men to
continue with the looting spree. How far should Kenyans take this economical
subbotage? How much will the cartels milk the investors? How deepful fear can
the cartels make to a new investor? Simply how much more shall we lose as
Kenyans?
KPC's extensive piping in Kenya
Kenya and Kenyans is/are generally a hopeful Nation, this
was evident from the discovery that was made by Tullow Oil company in Turkana.
Our media covered this story from all angles in length. Responsible social
media activist/bloggers were to pick the topic and dissect it in the best way
possible to further the discussion and educate the masses on what potential and
possibilities this means to our nation. Unfortunately the cartels praying for
the collapse of our country at the expense of filling their oversee’s
account now by paying a handful of bloggers who introduce poisonous sentiments
to the discussions that were set by the media coverage. It is both a let down
and sickening to kill the base of hope in the pyramid of reaping benefits as
nation. New discoveries come with huge expectations and myrid of challenges but
the steps the government has taken so far through the board of KPC is encouraging
and as a country we are handling this big mine in a good way.
The government after realizing the big skill gap that may happen as a
result of these new mines, the universities now train students on specific
skills that are needed for the prosperity and maximum benefit from the same.
The University of Nairobi and Kenyatta University now have fully accredited courses
that will fill these future gaps. This was a suggestion that was raised after
KPC board successfully did a research and feasibility studies in Turkana. Such
pro-activeness is only possible when professionalism is set high and shreads of
tenderness is full in the hearts of the individuals that manage public
institutions. That is what KPC has and that is what we must ask for from all
the other boards managing our parastatals and public institutions. This pro-activeness
will enable us to prudently utilize the oil and gas resources in our midst
whilst planning for our future generation.
After completion of the research and feasibility studies KPC management
committed to address the challenges that were identified. The biggest of all
was setting up the Morendat Centre of Excellence for Oil & Gas Pipelines
with the aim of developing human resource capacity for partner states in oil
and gas pipelines management, operations and maintenance to reduce dependence
on expatriate workers.
The courses offered in this regional institution at Naivasha which is
the creation of the KPC board include;
- Pipeline
Mechanical Technician
- Pipeline
Operations Technician
- Pipeline
Instrumentation and Control (I&C) Technician
- Pipeline
Laboratory Technologist
- Pipeline Legal
Officer
- Pipeline Fire
Officer
KPC is the only white pipeline operator in
the region with over 1,300 kilometres of pipeline network but as the region
embarks on large scale oil and gas exploitation, experts estimate that over
2,700 kilometres of pipelines will be developed to coincide with this
significant growth. This will require over 2,500 technicians up from the 700
that the region has all of whom are working in KPC. These demand dynamics and
strategic institutional linkages in the sector is what the Centre of Excellence
will address and as the school opens
doors next month, a new dawn in oil and gas sector will be coming to
town.
As economic growth in Sub-Saharan Africa is slowing, the
Global Innovation Index (GII) 2016 shows that Sub-Saharan Africa must preserve
its current innovation momentum. This can only be encouraged by cheering and
encouraging the management at KPC not jeering and employing unhealthy bloggers
for narrower achievement to the many cartels.
Kenya Pipeline will in March 2017 begin compensating
residents of Thange valley in Kibwezi East Constituency who were affected by an
oil leak two years ago, making it the first government institution that has
done so. Kenya pipeline company has already spent over Ksh 22million in CSR
support in terms of clean water, food aid, and bursaries for needy students
from Thange area as an entry point into the community to foster more
understanding and closeness.
This blog can confirm that KPC has already received 278
claim forms and the verification process is planned to be complete by end of
February. Each of the claimants will receive payment through its insurer, CIC
Insurance Company. The insurance firm is also
engaging with Panafcon - the company that carried out the impact assessment
study in the area - with the aim of studying their report to establish if there
are matters that need further clarification.
Below is a standard story that covered the compensation promise from KPC
https://www.standardmedia.co.ke/article/2001227936/kenya-pipeline-to-compensate-278-kibwezi-residents-affected-by-oil-spill
Below is a standard story that covered the compensation promise from KPC
https://www.standardmedia.co.ke/article/2001227936/kenya-pipeline-to-compensate-278-kibwezi-residents-affected-by-oil-spill
KPC's logo
i)
KPC
is one of the largest companies in Kenya, public or private. Its asset base is
about Shs 74 billion; 2015 revenue stood at Shs 21.4 billion; 2015 profit
before tax was Shs 11.7 billion.
ii)
KPC
is a strategic parastatal in the absolutely vital and growing oil & gas
sector because it transports in an efficient and environmentally safe manner
the majority of fuel within Kenya. The parastata is also a major regional
player. Without its presence, doing Oil and gas business in Kenya and in East
Africa would be far more costly, and highly inefficient.
iii)
KPC
operates the most extensive pipeline-based petroleum distribution and storage
network in Sub-Sahara Africa. The network covered by KPC is 1,342 km whereas
the storage potential now stands at more than 612 million litres distributed
across the depots in Mombasa, Konza, Nairobi, Nakuru, Eldoret and Kisumu. In
2015 alone, 5.8 billion litres of fuel went through KPC’s system.
iv)
KPC
as a parastatal is not only one of the most profitable public institutions in
Kenya, but an institution that was consistently profitable over the years.
Worth mentioning is it is the only public institution that do not rely on the
Exchequer for funding. On the contrary, KPC is a positive contributor to the
Exchequer through tax and dividend payments. Over the last 5 years, KPC paid over
Kshs 22 billion in taxes and dividends.
v)
KPC
is running Disability Inuka Scholarships scheme that will and has benefited scores
of bright but needy disabled children from all 47 counties in Kenya, best boy
and best girl from each county. The scholarship covers tuition fees, learning materials
and personal effects to help the children realise their dreams.
KPC also runs the Inuka Economic
Empowerment Program that trains hundreds of Persons With Disability (PWDs) across
Kenya on how to access public procurement opportunities. The aim of this
intervention is to increase the participation of PWDs in public procurement and
help alleviate poverty and curb unemployment.
vi)
Unique
HR skills – Being the only white oil pipeline operator in Kenya, KPC’s 1700-strong
workforce has unique technical and professional skills in oil & gas pipelines management,
operations and maintenance. As the region embarks on large scale oil
and gas exploitation, experts estimate that over 2,700 kilometres of pipelines
will be developed to coincide with this significant growth. This will require
over 2,500 technicians up from the 700 that the region has all of whom are
working in KPC. In fact, Kenya has only three welders who can weld a live
pipeline (with fuel flowing) and all of them are in KPC!
vii) KPC has developed a ten (10) year
transformational Corporate Strategic Plan dubbed KPC Vision 2025 aimed at ensuring the company begins to play a more
significant and strategic role in the oil & gas sector in the region.
Through the plan, KPC targets to widen its business focus by entering into
upstream, midstream and downstream activities of the oil & gas industry in
East and Central Africa. The plan outlines the strategies, action plans and key
performance indicators that will enable the Company achieve its vision.
Major Projects KPC
is undertaking;
KPC has invested Ksh60 billion in massive
infrastructural projects designed to consolidate its position as a market
leader in oil & gas commerce in the region. The Company is
undertaking the following key capital projects:
Sinendet-Kisumu Pipeline (Line 6):
The now complete new Sinendet-Kisumu
pipeline (Line 6) is a 122km 10-inch diameter pipeline parallel to an existing
6-inch diameter pipeline from Sinendet to Kisumu (Line 3) expected to enhance
petroleum product availability in the Western Kenya and the export market of
Uganda, Eastern DRC, Rwanda, Burundi and Northern Tanzania. The
line has increased product flow to Kisumu depot by 350,000 litres per
hour from the previous 110,000 litres per hour thus increasing the country’s
competitive edge in the region as a leading petroleum products exporter. The
additional product has enhanced optimization of tank utilization in Kisumu
which stood at 30% for many years. The full tank capacity for the port town is
now 39 million litres. The annual demand for petroleum products in Western
Kenya is 1.1 billion litres whereas the regional demand stands at 3.3 billion
litres. The new line will therefore enable KPC serve not just Western Kenya
region, but also the neighbouring countries. It has also opened up development
of other projects such as the Kisumu Oil Jetty (KOJ) and the planned Kisumu –
Busia Pipeline. The oil jetty will facilitate transportation of petroleum
product via Lake Victoria to the neighbouring countries. The project cost 5.7
billion and its return in just a year is estimated to be 3.7 billion. This means
by the end of two years the project would have raised enough to make profits for
the country.
Replacement
of the Mombasa – Nairobi Pipeline:
The Company is in
the process of replacing the existing Mombasa-Nairobi pipeline that has been in
operation for 38 years. A
Vision 2030 flagship project, the construction of the 20 inch diameter
450km pipeline commenced in the year 2014 and is expected to be completed in
2017. Once complete the pipeline will ensure sustained, reliable and efficient
transportation of petroleum products in the region and meet demand in the next
30 years with an installed flow rate for phase one of 1
million litres per hour by 2017, 1.9 million litres per hour for phase two by
2023 and 2.6 million litres per hour for phase three by 2044. The pipeline will
also enhance safety and protect the environment since transportation of oil via
a pipeline is the safest, fastest and most environmentally friendly means which
will not only remove hundreds of trucks from our roads at maximum utilization,
but also lower our pipeline maintenance costs. The estimated cost for this
project is 48.4 billion.
Construction
of Additional Tanks at Nairobi:
Construction
of four additional storage tanks at Nairobi Terminal each with a gross capacity
of 33,366,000 litres is ongoing. The additional tanks will more than
double the storage capacity of diesel and super petrol from the current 100
million litres to 233 million litres effectively providing sufficient capacity
for receipt of higher volumes of product expected once the Mombasa–Nairobi
pipeline is replaced. This will maintain adequate stocks for petroleum products
in Nairobi to cushion the economy from product outages. Besides guaranteeing
security of supply of petroleum products, the new tanks will also enhance
operational flexibility and increase tank turnaround at KPC’s Kipevu Oil
Storage Facility (KOSF) in Mombasa resulting in more ullage creation at KOSF
and reduction of demurrage charges. This ongoing project is estimated to cost
5.3 billion.
Construction
of Additional Loading Arms in Eldoret:
Installation
of additional loading facilities is required to cope with the rising demand for
petroleum products uplifts at Eldoret depot which serves Western Kenya region
and the neighbouring countries namely Uganda, Eastern DRC, Rwanda, Burundi,
Northern Tanzania and South Sudan. The project will enhance the existing
facilities to meet the anticipated increase in product uplifts by up to 2
million litres per day achieving the full benefits of Line 4
(Nairobi – Eldoret parallel line). The works entail installation of two
bottom loading facilities with three loading arms each to load diesel, super
petrol, and kerosene to increase the service delivery efficiency.
Once complete, the loading arms will enhance operational flexibility creating
more ullage in Eldoret to feed western Kenya and the neighbouring countries.
This ongoing project will cost the company Ksh 335 million.
