Press Center | Freight Shipping Logistics News
Mar 1, 2011
General
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The Ministry of Energy has awarded Galana Oil Kenya a tender to import 45,490 metric tonnes (MT) of emergency diesel to avert a fuel shortage in the country.
The Ministry of Energy has awarded Galana Oil Kenya a tender to import 45,490 metric tonnes (MT) of emergency diesel to avert a fuel shortage in the country.
Energy permanent secretary Patrick Nyoike said they awarded the bid on Monday after National Oil Corporation of Kenya delayed to deliver its first cargo of 56,500 MT between February 17 and 19 this year.
Galana won the tender with a bid of $34.49 (Sh2,759.20) as freight and premium, which was the lowest, even as National Oil blamed Kenya Shell for its decision to decline supplying its share of fuel cargo.
Mr Nyoike said a contingency plan was due to uncertainty over the State-owned firm’s second industry cargo of diesel from March 1-3 under open tender system (OTS).
“National Oil made alternative supply arrangements of ship-to-ship transfer offshore Zanzibar but it is still liable to a penalty of $10 (Sh800) per MT. The issue is to be dealt with by corporation’s board of directors,” the PS said of the tender awarded to National Oil on January 25.
OTS rules stipulate that an importer is liable to pay for late delivery or failing to deliver $10 per MT to prorata quantity of fuel a marketer had booked for inconvenience and facilitating making of alternative supply arrangement.
National Oil acting managing director Sumayya Athmani defended the firm saying the second cargo was reduced to 45,000 MT – a 27.4 per cent cut - after Kenya Shell decided to withdraw its portion of consignment.
“Naturally, this meant that economies of scale would not apply,” she said in a statement.
“We would like to make clear our intention to soon lodge a complaint with government on the behaviour by Kenya Shell that has placed diesel supply in the country in jeopardy,” said Ms Athmani.
She accused Shell of attempting to create panic that a nationwide shortage was imminent, an action she termed as sabotage.
But Kenya Shell said it made arrangements to import a private cargo of 25,000 MT of diesel to ensure continuous supply because of the National Oil cargo delays.
Energy permanent secretary Patrick Nyoike said they awarded the bid on Monday after National Oil Corporation of Kenya delayed to deliver its first cargo of 56,500 MT between February 17 and 19 this year.
Galana won the tender with a bid of $34.49 (Sh2,759.20) as freight and premium, which was the lowest, even as National Oil blamed Kenya Shell for its decision to decline supplying its share of fuel cargo.
Mr Nyoike said a contingency plan was due to uncertainty over the State-owned firm’s second industry cargo of diesel from March 1-3 under open tender system (OTS).
“National Oil made alternative supply arrangements of ship-to-ship transfer offshore Zanzibar but it is still liable to a penalty of $10 (Sh800) per MT. The issue is to be dealt with by corporation’s board of directors,” the PS said of the tender awarded to National Oil on January 25.
OTS rules stipulate that an importer is liable to pay for late delivery or failing to deliver $10 per MT to prorata quantity of fuel a marketer had booked for inconvenience and facilitating making of alternative supply arrangement.
National Oil acting managing director Sumayya Athmani defended the firm saying the second cargo was reduced to 45,000 MT – a 27.4 per cent cut - after Kenya Shell decided to withdraw its portion of consignment.
“Naturally, this meant that economies of scale would not apply,” she said in a statement.
“We would like to make clear our intention to soon lodge a complaint with government on the behaviour by Kenya Shell that has placed diesel supply in the country in jeopardy,” said Ms Athmani.
She accused Shell of attempting to create panic that a nationwide shortage was imminent, an action she termed as sabotage.
But Kenya Shell said it made arrangements to import a private cargo of 25,000 MT of diesel to ensure continuous supply because of the National Oil cargo delays.
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