National Oil boss says refinery should be closed

By Allan Kisia

Nairobi, Kenya: A Parliamentary committee has been told that the country stands to gain significantly by closing down the troubled Mombasa Oil Refinery rather than upgrading the facility.

The Public Investments Committee was told the country will save substantial amounts of money by closing the refinery and turning it into a petroleum storage facility.

The Managing Director of National Oil Corporation Sumayya Hassan-Athmani told the committee that upgrading the facility will not be economically viable as compared to turning it into a storage facility.

She noted that it is much cheaper to directly import already refined oil other than bring crude oil into the country.

“The refinery is old and is not able to produce products that meet the required international standards,” he pointed out.

The National Oil Corporation is a State corporation founded by Act of Parliament in 1981, with a mandate of participating in all aspects of the Kenyan petroleum industry.

Thursday, Hassan-Athmani lamented that sometimes, the refinery gives them fuel oil instead of the specific product they requested. Fuel oil is a fraction obtained from petroleum distillation, either as a distillate or a residue.

“The loss arising from difference between the product you wanted and fuel oil is absorbed by us. We are not given the right to ask any questions. It is not sustainable because we are losing too much,” she stated.

Leader of Minority Francis Nyenze, who is a member of the committee, had asked Hassan-Athmani to give her views regarding possible closure of the facility. Eldas MP Adan Keynan chaired the meeting.