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KENOL/KOBIL
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cnn
#431 Posted : Saturday, July 24, 2010 5:47:25 PM
Rank: Veteran

Joined: 6/17/2009
Posts: 1,627
Talks between KPRL-KK hit a dead end yesterday.Apparently KPRL was ready to go on processing KKs crude if the latter agreed to accept any future increments in the processing fee by KPRL,KK declined .Worrying for KPRL is other players seem to be silently backing KK raising the possibility of counter claims from the other marketers.The stand off continues.
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VituVingiSana
#432 Posted : Saturday, July 24, 2010 6:16:15 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,366
Location: Nairobi
@cnn - Apparently, KK asked for KPRL for an 'increase' in White Oil production for the increased fee... KPRL declined to guarantee the production of certain % of White Oils...

I understand KK's point... Why would KK pay 'extra' without getting extra?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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winston
#433 Posted : Monday, July 26, 2010 3:05:57 PM
Rank: Member

Joined: 4/14/2010
Posts: 806
Location: Nairobi
From KPRL's response there is an allegation , though not criminal, that KK is paying lower crude processing rates, but charging customers the same prices at its stations as other oil marketers who are paying higher crude processing fees. it then follows that part of the EPS includes the margin between what KK is paying and what other marketers are paying. Were this margin to be removed (by KPRL winning the case), would the EPS fall significantly?

On merits of the case against higher crude processing rates with respect to contract law: Can a buyer determine/force the price at which the seller should sell to him?
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Gordon Gekko
#434 Posted : Monday, July 26, 2010 3:35:46 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
I really fail to understand what the noise is about. What I understand is that KK have NEVER paid the new rates. They have always paid based on the 1999 rates? If so, the amount claimed by KPRL, Ksh 460M spread over when the new rates kicked in (1999?) is 460 /(2010 - 1999). Surely this is loose change to KK and will hardly cause a dent in the EPS. My reading is that KK is standing firm on a matter or principle.
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winston
#435 Posted : Monday, July 26, 2010 4:06:34 PM
Rank: Member

Joined: 4/14/2010
Posts: 806
Location: Nairobi
If KK has been paying lower crude processing rates, shouldnt their pump prices be proportionately lower?
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selah
#436 Posted : Monday, July 26, 2010 4:53:02 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
winston wrote:
From KPRL's response there is an allegation , though not criminal, that KK is paying lower crude processing rates, but charging customers the same prices at its stations as other oil marketers who are paying higher crude processing fees. it then follows that part of the EPS includes the margin between what KK is paying and what other marketers are paying. Were this margin to be removed (by KPRL winning the case), would the EPS fall significantly?

On merits of the case against higher crude processing rates with respect to contract law: Can a buyer determine/force the price at which the seller should sell to him?


If KK was to sell Lower than other marketers wont that bring another upheaval?
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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VituVingiSana
#437 Posted : Monday, July 26, 2010 5:47:39 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,366
Location: Nairobi
KK is (apparently) following the contract - I wish I could read it - which must stipulate some conditions which KPRL does not fulfil.

BTW, KPRL has a 'monopoly' i.e. Oil Marketers are FORCED to use inefficient KPRL... and we pay the price in higher fuel costs...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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youcan'tstopusnow
#438 Posted : Monday, July 26, 2010 10:00:30 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
KK enters Mozambique. www.businessdailyafrica....6/-/e2gkamz/-/index.html
GOD BLESS YOUR LIFE
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the deal
#439 Posted : Monday, July 26, 2010 10:48:42 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Bad Bad Bad news....
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muganda
#440 Posted : Monday, July 26, 2010 10:49:13 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
KenolKobil suspended until they agree with KPRL - nothing in, no ullage space, etc.

KTN News at 9
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