Macharia Irungu – Managing Director, Kenya Pipeline Company
The Kenya Pipeline has been a revolving door and cash-cow for a few individuals and the fact that senior government officials, oil tenderpreneurs are behind the Gulf Energy gasoline smuggling is not shocking especially now that the demand for campaign funds is very high.
As Kenyans retreated for the Christmas break, some oil industry executives may have taken advantage of the lull and the possibility of relaxed scrutiny to side-step processes used in the importation of petroleum products in the country, according to a section of the industry. The result is the alleged non-procedural berthing of a ship tanker at the Port of Mombasa and the discharge of some 30,000 metric tonnes of super petrol.
The vessel – MT Jag Prarena – arrived on December 24 and started discharging fuel ahead of another ship – MT Sloane Square that had arrived in Mombasa on December 13.
Impeccable sources have informed the chief editor of this site that the Directorate of Criminal Investigations(DCI), Ethics and Anti-corruption Commission (EACC), Kenya Revenue Authority (KRA) and other accountability institutions have all been warned not to investigate the case revealing how powerful the individuals behind the heist are.
Up to now, the officials at the Ministry of Petroleum and Mining who offered a safe veil of shield to invisible but well-connected team code-named “elite group” to facilitate the clearance of the consignment at the Port of Mombasa are free.
The discharge schedule is deliberated and firmed up during the vessel scheduling committee meeting attended by OMCs, Supply coordinator, KPC, KRA, KPA and MOP&M. This meeting is usually held at least monthly and the schedule can only be amended by the committee.
The schedule is based on the demand for petroleum products determined on a 3-month average throughput. Once the schedule is established by the committee , it is circulated to stakeholders and it is on this basis that the Supply Logistics team prepares an Ullage creation schedule that synchronizes the import plan and the pipeline pumping schedule.
MSP Vessel MT. Clio whose revised date range was 12-14/12/2021, wass alongside discharging 120,934m3 of MSP Between 26th Dec to 30th Dec 021. Upon completion, the next scheduled vessel was Mt Sloane Square Laden with a nominated volume of 106,74ZM3 of AGO.
However, instructions were given by James Karanja that MT Jag Pzerana whose importer is Gulf Energy, be allowed to discharge despite not having been in the vessel schedule. The vessel was laden with 42,874m3 of PMS. SBO involved queried why this should be allowed without prior committee approval but were told to discharge the vessel based on instructions/approval by MD. Mr Macharia.
The vessel commenced discharge but suspended discharge at 0600hrs on 1st January 2022 following an industry uproar. The vessel remained idle at the port until 3rd January when further instructions were issued for resumption of vessel discharge. The vessel completed discharging on 4“ January 2022 when the petroleum stock situation had already been put in disarray.
It is worth noting the below;-
The vessel discharge caused disruption of not only the import plan but also the mainline pumping schedule as there was a pending transfer of AO from KPRL which could not happen as Mt Jag Prerana was already discharging PMS at KOSF and the two could not happen simultaneously. There was a low volume of AGO to be moved to the line. This resulted in a Line stoppage totalling 17.9hours between 1st and 3rdas AGO receipt had not been done earlier and the tanks needed more time to be settled, drained and cleared for movement into mainline.
Due to the Line stoppage above. The JET A-1 in Line 5 could not be displaced in time and PS09 stocks fell dangerously below the earlier planned 4days stock to a record low of 1-day stocks. This was a very risky situation with the potential of exposing the country to an international crisis
Western Kenya depots were staring at a stock out situation of MS products. There was approximately 20,000m3 of PMS Line 4 which could not be displaced to be received in the depots in good time as the AGO awaited in Line 5 was still held in the pipeline awaiting AGO from KOSF to displace DPK and AGO into Nairobi Terminal and Embakasi Depots.
The Kenya pipeline has refused to tell Kenyans who authorized the change of the schedule e agreed with the ministry and the CMCs.
Tomorrow, we profile James Karanja- The mastermind of the heist.
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