Chemchina (UK) Ltd has won the bid to buy Kenyan’s crude oil. The company is under an umbrella of ChemChina Petrochemical, which engages in the crude oil business.
The first crude oil barrels to be exported have been scheduled to start from next month. The barrel was sold at a cost of $61.
Chemchina is a multinational company that is conducting businesses in South Africa, West Africa, and the Mediterranean region.
According to the statement from Petroleum principal secretary Andrew Kamau, Chemchina won the bid on a competitive process and offer the best price among other competitors.
The winning of the Chemchina signifies a strong interest of China in Africa and Kenya in particular.
The business is expected to balance the trade deficit between the two countries. Kenya has been importing products worth 370 billion from China according to data from government agencies.
With the export going on, the benefits have not yet been clarified by the government. Despite the petroleum Act 2019, which state that the benefits will be share as 75%,20%,5% to National government, county government and local communities respectively.
The costs to be recovered from every export and share of benefit to the Joint Venture Partners has not been disclosed.