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KenolKobil Ltd on Friday maintained that it is operating normally and accused the Energy Regulatory Commission of disobeying a court order by continuing to suspend its oil import licence.
KenolKobil Ltd on Friday maintained that it is operating normally and accused the Energy Regulatory Commission of disobeying a court order by continuing to suspend its oil import licence.

“We assure all stakeholders, and in particular our shareholders, that our operations across all countries we operates in, remain solid, running well, and meeting all customer expectations,” said the company’s general manager, Mr David Ohana.

The company was reacting to ERC director general Kaburu Mwirichia’s assertion on Wednesday that the suspension of the oil marketer’s import licences for petrol, diesel, kerosene and jet fuel remained because it had obtained the court order after its grace period had elapsed.

In a statement, KenoKobil said the ministry of Energy was coercing it to submit to the demands of the Kenya Petroleum Refineries Ltd (KPRL). The company’s lawyers have also sent a complaint letter to Mr Mwirichia.

“This public announcement clearly shows that despite the court order restraining you against taking steps cited in your notice issued on August 17, 2010, you intend to continue taking these steps and enforcing them,” the letter by law firm Shapley Barret & Company, says.

The oil marketer sort court protection after the regulator gave it a 14-day notice to act on accusations of breaching oil industry rules on processing some of its crude oil at the refinery.

While the lawyers simply said “the law will take its course” Mr Ohana was categorical that they would return to court.

“Any action against the stay of order shall be in contempt of court, and KenolKobil shall file proceedings accordingly,” he said.

The oil marketer seems determined to go on with its long-running battles with the refinery.

“The management of KenolKobil will act to protect its shareholders interests and protect its commercial rights as stipulated in the various agreements it has entered into with service providers,” said Mr Ohana.

Mr Ohana accused the Kenya Petroleum Refineries Ltd of opting to “arm twist KenolKobil using crude and illegal methods to achieve its financial objectives.”

The saga, which has sucked in the regulator and ministry of Energy, begun in 2006 over the oil marketer’s dispute with KPRL over inefficiencies and fuel processing charges.

KPRL raised its fees but Kenol refused to pay the company, which raised the figure to Sh456 million through accumulation, since then revised to Sh600 million.

Instead, KenolKobil lodged a Sh2 billion counter-claim that it now says is in excess of Sh5.3 billion for loss of business.