KPC seals Ksh93.7B crude oil deal as Kenya moves to cash in on Kipevu terminal

Kenya Pipeline Company (KPC) has inked a significant 25-year crude oil storage and handling agreement, projecting a gross revenue of approximately Sh93.68 billion. The deal, struck by Kenya Petroleum Refineries Limited (KPRL) - a wholly-owned subsidiary of KPC - with Gulf Energy E&P B.V., will see KPRL manage the receipt, storage, handling, and delivery of crude oil for export via Kipevu Oil Terminal II (KOT II).

KPC views the deal as a strategic move to unlock the commercial potential of its existing and upgraded infrastructure. The long-term contract is expected to bolster KPRL's revenue outlook through fixed service fees and recovery of qualifying variable costs, although KPC notes that the projected revenue is a projection and not a guaranteed income.