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Why Is Kenya Rejecting The Oil Deal With Iran?

Discussion in 'Kenyan News and Politics' started by Ab-Titchaz, Mar 3, 2009.

  1. Ab-Titchaz

    Ab-Titchaz Content Manager Staff Member

    Mar 3, 2009
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    Row as Sh106 billion Iran oil deal rejected


    Iran’s President Mahmoud Ahmadinejad with President Kibaki at Jomo Kenyatta International Airport, Nairobi, last Tuesday when he arrived for a two-day state visit in Kenya

    Posted Monday, March 2 2009 at 21:41

    In Summary
    A dispute has broken out after the government appeared to reject Sh106 billion worth of crude oil said to have been offered by Iranian President Mahmoud Ahmadinejad to Kenya.

    Allegations were flying around on Monday that the government had rejected discounted Iranian oil, which could have saved the economy hundreds of millions of shillings.

    But Energy permanent secretary Patrick Nyoike said Iranian oil was no good because after refining, half of it is useless residue.

    During negotiations, Kenya had requested Iran for oil on soft terms — 120-day credit on government-to-government concessionary prices.

    A memorandum of agreement was signed granting 90-day credit, but mysteriously said nothing about cheaper prices, according to an industry source, who declined to be named for fear of antagonising the government.

    “We signed a deal that allows National Oil Corporation or any other company to get in touch with the Iranian Oil Corporation to get oil. We agreed on a figure of four million metric tonnes a year,” Mr Nyoike said.

    According to a usually reliable government source, some Energy ministry officials did not appear to favour the deal.

    But another government source, who did not wish to be named discussing the controversial agreement, claimed price negotiations were going on.

    Mr Ahmadinejad came visiting bearing goodies: A Sh400 million development grant, Sh400 million credit line, and an offer to build a factory to package Kenyan tea for re-export into Asia, among others.

    “That is what we (government) have been trying to strike for a long time because it could ease problems related with oil,” said the government source, who accused two officials of the Energy ministry of turning down cheap oil.

    “There were two officials from the Ministry of Energy who made it clear that oil from Iran is bad. They were supported by a representative from the National Oil Corporation,” he said.

    The source claimed Mr Ahmadinejad had offered to supply two million barrels of oil a month at 10 per cent discount on the going market rate.

    The Iranians had also offered to help build reservoirs to store up to a year of oil supply, the source said.

    Stabilise market

    But an oil expert who refused to be named for fear of endangering his position at work said Iranian oil was “good” and can be processed at the refinery in Mombasa.

    “Iran has two types of crude oil — heavy and light — which we process at the refinery,” said the official. Already, 30 per cent of oil products used in the country originate from Iran.

    Going by the current crude oil price of Sh3,552 ($44.40) a barrel, the government could have saved Sh8.8 million a month.

    Such a deal also had the potential to stabilise the markets, where shortages and price increases have become frequent.

    DAILY NATION - Row as Sh106 billion Iran oil deal rejected
  2. Mwana wa Mungu

    Mwana wa Mungu JF-Expert Member

    Mar 3, 2009
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    tis because Iran is not a friend with Ubama(Obama). so they won't betray their son.
  3. M

    Mnairobi JF-Expert Member

    Mar 3, 2009
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    Hail OBAMA
  4. Mwana wa Mungu

    Mwana wa Mungu JF-Expert Member

    Mar 4, 2009
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    tehehetehetehe...kumbe sababu ndo hiyo..basi mmekwisha. mimi nilifikiri sababu ni ingine. sasa obama ni rais wa kenya au wa america? obama ana contribute nini kwenye bajeti yenu? msilale usingizi mkategemea magunia ya pesa toka US. hayata kuja. unganeni na nchi zingine, fanyeni kazi, msimtukuze Obama(anayefagilia ushoga/usagaji na kutoa mimba). huyu ndiye mkenya halisi.
  5. Mpita Njia

    Mpita Njia JF-Expert Member

    Mar 4, 2009
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    Sasa kwa nini walimkaribisha????
  6. M

    Mnairobi JF-Expert Member

    Mar 4, 2009
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    Wee dont be an idiot. Obama is proud of his kenyan roots. Hes been here many times. Kenyans have followed his carrer for long , even before any of you knew he existed. And yes he is bringing to kenya sacks of money through tourism money. Educate yourself. HAIL OBAMA.
  7. J

    Janejo Member

    Mar 4, 2009
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    I do support Obama personally but would also like to know if that's the case with the "Mungiki".....There are rumours that the "mungiki" despise the "Luo" as to why you killed each other after the elections in 2007 since Odinga could not be accepted as a president by the "Mungiki". I remember they once called him a "junior senator" when he visited Kenya and criticised the government on corruption. From your experience "Mnairobi", and this is just out of curiosity...do you think all Kenyans support Obama?
  8. R

    Rodelite JF-Expert Member

    Mar 4, 2009
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    Kenya has been a good friend of the United States....the US Naval ships dock at Mombasa port every now and the.
    Iran has not been a friend of the United States.....so Kenya just didn't want to betray
    their friendship with US.....It has nothing to do with President Obama.

    ***And please...give the man his respect by addressing him as President Obama and
    not just Obama....Thanks.
  9. B

    Bull JF-Expert Member

    Mar 5, 2009
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    Atleast wa-Kenya walionyesha independent minded, walikua free ku discuss deals na President Ahmed Najad japokua haikufanikiwa,

    Kama Ahmed NAJAD angekaribishwa Tanzania kwa maslai ya nchi, naamini kabisa ndugu zetu fulani hapa TZ wangeanza kujinyea
  10. Ishmael

    Ishmael JF-Expert Member

    Apr 19, 2014
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    Mwai Kibaki:)