East African Petroleum Outlook Magazine by VISIONMEDIA

East African

PETROLEUM OUTLOOK Special Edition for EAPCE’15

East African Community:

Proven Destination for Investment in Petroleum Resources

Focus on Rwanda Petroleum and Gas Industry

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Contents Massege from EAC Secretary General 4

Publishing Credits East African Petroleum Outlook Issue 001

Conference Overview

Petroleum Exploration Status in EAC

Published by VISION MEDIA LTD For the 7th East African Petroleum Conference and Exhibition.

Tel: (+250) 788 581 321 E-mail: info1.visionmedia@gmail.com

Focus on Rwanda Petroleum and Gas industry

11 Regional Oil Pipeline

Disclaimer

The views expressed in this Publication are not neccessarily shared by the publisher. Vision Media Ltd cannot warrant that all information in this Publication is complete and accurate. Copyright © 2015 by VISION MEDIA LTD. All Rights Reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system without the prior written consent of the publisher.

East African Petroleum Outlook

Message from EAC Secretary General

t is a great honour, on behalf of the East African Community (EAC) to extend to you an invitation to the 7th East African Petroleum Conference and Exhibition 2015 (EAPCE’15) which will be held at the Kigali Serena Hotel, Kigali, Rwanda, from 4th to 6th March 2015.

The East African Petroleum Conference and Exhibition is held every two years. EAPCE’15 will provide a unique forum for dialogue for all players in the oil and Petroleum industry regionally and internationally. Technical papers, paper posters, e-posters and exhibitions aligned to the conference theme are lined up to produce stimulating interactions among conference delegates. Field excursions to selected sites of geological and touristic importance in the region are being planned to give the delegates an unforgettable experience. The EAC Partner States will showcase the potential for oil and gas that exists in the region and report on ongoing activities in exploration, development and production, further, they will share their policy, legal and regulatory frameworks and other initiatives aimed at continually improving the enabling and facilitative environment for the sector. Furthermore, EAPCE’15 will offer participants opportunity to promote their products, activities, technological advancements and hold business-to-business meetings in addition to sampling the East African cultural and touristic diversity. I therefore, hereby invite you to participate in the Conference and Exhibition. You may participate as a delegate, exhibitor or a sponsor. I look forward to welcome you at the EAPCE’15. Amb. Dr. Richard Sezibera. EAC Secretary General. 4 East African Petroleum Outlook

very two years, the East African Community Partner States organize a Conference and Exhibition on the Petroleum Potential and Investment Opportunities in East Africa. The East African Petroleum Conference and Exhibition (EAPCE) is recognized globally as a premier international forum for those working in the upstream petroleum sector.

CONFERENCE OVERVIEW aggressive exploration programmes in the region. Each of the previous six Conferences has been more than just an international conference for it has integrated cultural and touristic dimensions unique to East Africa. EAPCE’15 will, like the previous conferences, provide participants with not only the opportunity to assess the developments in the petroleum upstream sector in East Africa, but also to explore the many and varied attractions of this large region that is known in Africa for its unique and diverse beauty.

Participants include oil companies, researchers, investors, service providers, academia and financiers among others. Participants exchange ideas and information about recent developments in the region, learn about new investment opportunities EAPCE’15 will feature an exceptional program and share lessons learnt. of technical papers, research posters with an impressive lineup of invited speakers and The East African Partner States will host the panel participants together with innovative 7th East African Petroleum Conference and exhibitions. Immediately before and after Exhibition 2015 (EAPCE‘15) on the Petroleum the Conference there will be a diverse range Potential and Investment Opportunities in of opportunities for delegates to enjoy East Africa in Kigali, Rwanda, from 4th to 6th geological field excursions and tours of March 2015. For the three days, Kigali will wildlife conservation areas. become the place for the oil and gas industry players to gather, collaborate, conduct business and experience the showcasing of achievements in the sector under the theme: EAST AFRICA REGION. “Proven Destination for Investment in Petroleum Resources for Regional Energy Sufficiency and Lasting Socio-Economic Development” The East African Region has a total of 28 prospective sedimentary basins with over 37 International Oil and Gas Companies licensed in the region to date. The petroleum resources discovered in the East African region is estimated at 2 billion barrels of oil in place and 3tcf of natural gas. Additional resources continue to be discovered by

“Proven Destination for Investment in Petroleum Resources for Regional Energy Sufficiency and Lasting Socio-Economic Development.” East African Petroleum Outlook

PETROLEUM EXPLORATION STATUS IN EAST AFRICA thorough data coverage through phased and public competitive bidding process during UGANDA 2015. Announcement of the bidding round here are six sedimentary basins in will be November-December 2014. Uganda, out of which the Albertine Graben is the most investigated A total of about 6,000 line kilometers of and henceforth prospective for 2D seismic data and about 2,000km2of petroleum exploration, development and 3D seismic data have been acquired in the production. The Graben forms the northern Albertine Graben. In addition, since 2002, most part of the western arm of the East One hundred Twenty seven (127) wells have African Rift System, stretching from the been drilled in the Graben and One hundred border with Sudan in the north to Lake Fifteen (115) wells have encountered oil in Edward in the south, a distance of over multiple reservoir intervals in the subsurface, 500km. The Graben is shared with the representing a remarkable drilling success. Democratic Republic of Congo and averages 45km in width, with a total area in excess of To-date, twenty one (21) discoveries of oil and gas have been made in the country in 22,000km2on the Uganda part. excellent quality reservoir sands and many of Currently, approximately 20% of the Graben the wells drilled have intersected significant is licensed to three oil companies. The net oil pay sometimes in excess of 30m. The companies operating in Uganda include oil is generally light to medium gravity (API Tullow Uganda Operations Pty Limited, ~30oto 33o) and sweet, with low Gas-Oil Total Exploration & Production Uganda B.V Ratio (GOR) and some associated wax.

and CNOOC Uganda Limited. Each of the three companies holds 33.333% equity in the 4 licenses. CNOOC has been issued with a Production license for Kingfisher; Tullow has submitted application for production licenses for over nine discoveries in Buliisa and KaisoTonya areas. Total has submitted application for Production Licenses for two discoveries Jobi-Rii and Ngiri which are being discussed with Government. The other discoveries that have recently been appraised by Total Exploration & Production Uganda B.V will have their Field Development Plans (FDP) submitted to Government by December 2014.

With the recent appraisal work and evaluations carried out in Exploration Area 1 by Total Exploration & Production Uganda B.V and partners, the discovered resources in the Albertine Graben are currently estimated at a STOIIP of 6.5 billion barrels of oil and about 500 billion cubic feet of gas resources. This resource is the planning base (P50) on which Government of Uganda and the partners are basing the development phase for commercialization.

Government of Uganda signed a Memorandum of Understanding (MoU) with its upstream partners (Total Exploration & Following the upgrade of the upstream Production Uganda B.V, CNOOC Uganda Ltd petroleum law, Government is planning to and Tullow Uganda Operations Pty Ltd). This undertake licensing of a few areas that have MoU provides a plan for commercialization 6 East African Petroleum Outlook

PETROLEUM EXPLORATION STATUS IN EAST AFRICA of the discovered resources, which includes development of a 60,000bbl/day modular refinery starting at a processing capacity of 30,000bbl/day, use of crude oil to generate electricity in short term and development of an export pipeline.

tendering and licensing rounds. The current policy aims into obtaining financially and technically capable partners in a transparent manner.

The refinery development has progressed well and the process of identifying a lead investor from the two preferred bidders; SK Group led Consortium (Republic of South Korea) and RT Global Resources – led Consortium (Russia) is expected to be concluded by December 2014. The EAC Partner States have been invited to participate equitably in the 40% public shares refinery project.

Onshore Basins of Tanzania continued to attract petroleum exploration companies. Currently, twelve IOCs are conducting exploration in the inland rift basins, coastal basins and shallow offshore basins. The exploration activities in these basins are in different stages of exploration. Tanzania is taking stock of available open acreages in the onshore area with anticipation of organizing onshore licensing round in 2015. As of March 2014 discovered gas initially in place in the onshore basins was approximated to 8tcf. The onshore gas reserves are allocated mostly for local use for power generation, industrial use, households and motor vehicles.

On the export pipeline, studies for the optimum route to the sea are underway. There are also several pipeline investigations being carried out by both the licensed companies and Government of Uganda including field development pipelines to Central Processing Facilities and the crude oil collection hub in Hoima, products pipeline from the refinery to the central market area around Kampala and pipeline studies from Uganda to the other parts of East Africa.

TANZANIA

s in the other EAC Partner States, Tanzanian Basins continued to attract multinational companies both Independent Oil Companies (IOCs) and National Oil Companies (NOCs). Several companies have been approaching Tanzania to seek for available exploration and production opportunities. However, Tanzania has now shifted its policy of 1990s and early 2000s of issuing acreage on “first come first serve” basis to competitive

Onshore Exploration

Offshore Exploration Deep Offshore Basins also continued to attract petroleum exploration companies. Currently, four (4) Operators in which 2 are major integrated oil companies are conducting exploration in the deep offshore basins with great success. As of March 2014 discovered gas initially in place in the deep offshore basins was estimated at 38.5 tcf. The government plan is to export part of this gas through LNG project and part will be utilized locally. Deep offshore blocks are offered through licensing rounds. Currently, the Government is offering seven deep sea offshore blocks and Lake Tanganyika North Block through the 4th Licensing Round which closed on 15th May 2014.

East African Petroleum Outlook

PETROLEUM EXPLORATION STATUS IN EAST AFRICA Gas Production

total basin surface area of approximately 490,000km2. The Songo Songo and the Mnazi Bay gas Map of Kenya showing the major sedimentary fields continue with production. The current basins (Source: Ministry of Energy & infrastructure and wells deliverability for the Petroleum) Songo Songo field allows production and transportation of up to 100 mmscfd and that Current Status of Mnazi Bay field allows production and transportation of up to 10 mmscfd. Twenty three oil companies have been Gas Infrastructure Development licensed to undertake exploration activities within the sedimentary basins in the country. The Government is expanding gas These exploration activities have led to nine infrastructure by constructing processing discovery wells being drilled, seven of which plants in Songo Songo and Mnazi Bay and a are onshore in the Tertiary Rift basin and 36 inch 487 km gas pipeline from Mnazi Bay two offshore in the Lamu basin. Oil has been Mtwara to Dar es Salaam. The project will discovered within the Tertiary Rift Basin, also include construction of a 24 inch 25 km in blocks 10BB and 13T, while gas has been of a marine portion connecting the Songo discovered offshore in block L8, with an oil Songo gas field and the main 36 inch pipeline and gas discovery made offshore in block at Somangafungu. The new infrastructure L10A, within the Lamu basin. A total of 45 will increase capacity of gas deliverability to wells have been drilled so far although further customers by 784 mmscfd. The present total exploration activities are still ongoing. capacity is approximately 115 mmscfd. Current Activities LNG Various activities are being undertaken by The LNG project aims at liquefying and the oil companies within the various blocks. exporting gas to generate revenue. The project These include: 3D seismic in thirteen blocks; will also serve to deliver local component - eleven are offshore while two are onshore, of the natural gas from the offshore fields Full Tensor Gradiometry (FTG) and additional for domestic use to meet domestic market seismic in various blocks, Multi-client 2D obligation. Four international oil companies seismic in deep water blocks operated by which committed to invest in the project are ENI, Total and CAMAC plus the two open working with the Government of Tanzania to deep water blocks L25 and L26. Twelve new ensure that this project is successful. exploration wells have been drilled between March 2012 to date :-Four offshore (Mbawa 1, Kubwa 1, Kiboko 1 & Sunbird 1); and eight KENYA onshore (Ngamia 1, Twiga South 1, Paipai enya is subdivided into four (4) 1, Etuko 1, Ekales 1 , Agete 1, Amosing 1 and major sedimentary basins where Bahasi 1). Nine of the twelve (12) wells drilled exploration activities are being currently are discoveries:- seven crude oil, undertaken. These basins have a one natural gas and one with both oil & gas.

8 East African Petroleum Outlook

PETROLEUM EXPLORATION STATUS IN EAST AFRICA planned in 2014. Comprehensive FTG-Gravity OIL DISCOVERY IN BLOCKS 10BB AND 13T & Magnetics coverage over Kenyan Tertiary Current Petroleum Exploration Blocks rift (Source: Tullow Oil Plc). in Kenya (Source: Ministry of Energy & Petroleum) DISCOVERIES OFFSHORE So far seven wells have been drilled within these two blocks and have proven successful. These are Ngamia-1, Twiga South-1, Etuko-1, Ekales-1, Ewoi-1, Agete-1 and Amosing-1. The first oil discovery was made in Ngamia 1 well in block 10BB, in March 2012, with a subsequent discovery in Twiga South- 1 well in block 13T, both within the Tertiary Rift basin. These discoveries have been made by Tullow Oil Plc and its joint venture partners. Ngamia-1 well was the thirty first well to be drilled in the country and was drilled to a total depth of 2340m. Oil was discovered in three zones between 800 and 1960m, with a net pay column of more than 100m. The crude oil discovered in the well has an API of 29-35o. Twiga South-1 well was drilled to a total depth of 3250m and oil was discovered in three zones between 1550 and 3068m. A net oil pay column of at least 30m was confirmed. Twiga-1 is the 35th exploration well to be drilled in Kenya. Other discovery wells that have been drilled by Tullow include: Etuko-1 well (TD 3100m NP 40-90m), Ekales-1(TD2954m NP 60-100m) and Agete-1(TD 1930m NP 100m) among others. Tullow Oil Plc is going on with exploration and appraisal activities within the two blocks and expects to drill a total of 35 wells within the next two years.

Natural gas has been discovered in the Mbawa- 1 well off-shore Block L8 in Lamu Basin. This discovery was made by Apache Energy Ltd in 2012. The well was drilled to a total depth of 3275m and natural gas of net pay of 52m was discovered. Due to the water depth of more than 800m the economics dictated that commercial exploitation of the resource was not viable at the moment. Similarly, oil and gas has been discovered in block L10A, from the Sunbird well drilled early 2014 by BG. Several exploration activities are ongoing, both onshore and offshore, with oil companies at various stages of their work program obligations. WAY FORWARD The onset of oil and natural gas discoveries was a major turning point in the petroleum sector in Kenya. The discoveries show that there is strong evidence of a working petroleum system and has led to heightened investor interest and increased exploration activities. The identification of additional hydrocarbon leads and prospects is ongoing and there is a very high probability of more discoveries being made. Planned activities within the sector include: • More than 40 onshore wells • At least 2 offshore wells • 7 blocks to be gazetted and licensed. • Tullow have started development studies in blocks 10BB and 13T.

From appraisal and testing of the seven successful wells drilled so far, the company confirms over 600 million barrels of oil in The Petroleum sector is also undergoing place. At least six further appraisal wells are sector reforms with three key areas identified. East African Petroleum Outlook

PETROLEUM EXPLORATION STATUS IN EAST AFRICA These are: • Review of the Legal and Regulatory framework for Petroleum Exploration and Production; • Development of Fiscal and Contractual Terms for Natural Gas; and • Capacity Building - To increase inadequate local capacity for development and management of the country’s upstream petroleum sub-sector.

BURUNDI

arious studies have been conducted since 1959 for petroleum exploration on two basins: the Rusizi Basin onshore and the Lake Tanganyika basin offshore. These basins are part of the East African Rift System and are situated between Burundi, Democratic Republic of Congo, United Republic of Tanzania and Zambia. The Rift System is dated from Cenozoic (Tertiary) and is divided into two branches: the Eastern arm and the Western arm. The Lake Tanganyika and the Rusizi River plain belong to the Western branch which consists of series of sedimentary basins marked by deep Lakes (Albert, Kivu, Tanganyika, and Nyasa). In Burundi those basins cover an area of 2,968.1Km2. Geological studies, gravimetric, aeromagnetic and seismic surveys have been conducted in the two basins and the average sediments thickness is estimated to be more than 3,000 meters. Despite the volume of studies already completed, oil research in the two zones is still at its inception stage and no conclusion can be made on the hydro-carbon prospective; however, the oil seepage both onshore and in the Lake Tanganyika proves 10 East African Petroleum Outlook

an imminent presence of hydrocarbons. That is the reason why the whole Rift Valley, in particular the Lake Tanganyika and the Rusizi river basins, is of great interest for hydrocarbons exploration. The exploration area of Rusizi and Lake Tanganyika basins has been divided into four blocks: • A (793.1 km2), • B (697.1 km2), • C ( 664 km2) and • D (813.4 km2). Block A onshore is in the Rusizi plain and Blocks B, C and D are in the Lake Tanganyika basin from North to South respectively. The Government of Burundi has continued to encourage oil companies to invest in petroleum exploration. To Tanganyika Explorer Vessel date, all the four blocks have been granted exploration permits. • A-Z Petroleum Products was granted Block A in 2011; • Minergy RE Ltd. which is owned at 87.5 % by Signet Petroleum was granted Block C in 2011; • Surestream Petroleum Ltd. was granted Blocks B and D respectively in 2009 and 2008. • Signet Petroleum and Surestream Petroleum Ltd signed a MoU to conduct a 2D seismic survey on Lake Tanganyika. The survey was initially planned for 2013, but the renovations to be made on the “Tanganyika Explorer Vessel is taking longer than expected.

FOCUS ON RWANDA PETROLEUM AND GAS INDUSTRY

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Avenue des poids lourds. P.O. Box 1576 Kigali – Rwanda. Tel:+250 788 306 238

Email : info@petrocom.rw www.petrocom.rw

FOCUS ONRWANDA

RWANDA

etroleum Exploration in Rwanda is in its fetal phase. Exploration activities started in 2007. The potential area for exploration is located in the western part of the country specifically under Lake Kivu. The whole exploration area covers about 1,600 km2. Up to date, the following activities have been covered: Satellite images analysis, aero magnetic and gravity survey, geochemical analysis and genetic characterization of gases in Lake Kivu, EIA for 2D seismic survey, and reconnaissance 2D Seismic Survey. The Government of Rwanda has been working hard on legal and regulatory tools. The Upstream Petroleum Policy and Production Sharing Contract (PSC) model are now in place. The draft Petroleum law is also ready for consideration by parliament. Way forward The Government of Rwanda is currently evaluating some requests, from several companies, to award exploration license for the Kivu block. Upon signature of the PSC

14 East African Petroleum Outlook

in the near future, the company will resume the exploration activities. The next stage of exploration is deep and detailed 2D seismic reflection survey. The Geology and Mines Department, charged with implementation and supervision of petroleum exploration projects, is planning to carry some ground gravity and magnetic survey on the Bugarama basin (South West) to raise the knowledge on its potential for petroleum exploration. Methane gas to power As part of the Western Branch of the African rift valley, Lake Kivu was formed in the course of the Volcano chain. This lake contains an enormous quantity of dissolved gas: an estimated 250 billion cubic meters of carbon dioxide (CO2) and 55 billion cubic meters of Methane gas (CH4). The Government of Rwanda is further engaged in the development of a modern gas production facility which is currently supplying 2 MW to the national grid. This successful pilot project has attracted many other developers not only for power generation but also for fertilizers and liquid fuel.

Inside Downstream Petroleum Sub-sector in Rwanda

East African Petroleum Outlook

DOWNSTREAM PETROLEUM IN RWANDA

wanda is a net importer of all petroleum products consumed locally. Diesel, Super, Kerosene, Liquefied Petroleum Gas (LPG) and lubricants for vehicles and machinery make up the popular list of petroleum products commonly imported and highly consumed in Rwanda. Most of the imports of petroleum products to Rwanda come via the Northern Corridor (via Kenya and Uganda) or the Central Corridor (via Tanzania). They are all transported on trucks by road. Rwanda’s appetite for petroleum has been on the steady increase since the 1994 genocide against the Tutsi, reflecting the recovery in the economy. This has increased oil imports, mainly diesel and super which are the most consumed petroleum products. Oil consumption has increased consistently and is currently estimated to be in the range between 25-30 million litres monthly and it is set to further increase at an annual rate of 10 percent, according to Rwanda Utilities Regulatory Authority (RURA). On the other side, as a net importer of petroleum products, Rwanda’s national oil storage capacity, especially for diesel and super needed to fuel the increasing number of vehicles and industrial machinery, has not changed much for the past two decades. It is now 30 million litres although the government has set an ambitious target to increase national oil storage capacity by five times the current capacity to 150 million litres by 2017. The increase of national oil storage capacity, says permanent secretary in the Ministry of Trade and Industry (MINICOM) Mr. Emmanuel Hategeka, will put Rwandan oil importers in 16 East African Petroleum Outlook

a favourable position to negotiate better wholesale prices since they will be buying in bulk. Already the strategy to increase oil storage capacity seems to be winning. Local and foreign investors have already started building oil storage facilities to service the growing demand. Societe Petroliere (SP) Ltd, one of the largest oil retailers in Rwanda, has taken the lead among local oil companies to construct a 21 million litre oil depot facility in Kigali. Located in Rusororo Sector in Gasabo District, in the capital city Kigali, the depot is set for launch in mid-2015. Other investors in oil storage facilities in Rwanda include foreign companies such as OilCom, Abbarci, Oryx Petroleum, Protek and Mount Meru Petroleum Rwanda. Regulation of Petroleum Business The sale of petroleum products in Rwanda is heavily regulated. Oil prices are to minimize the harm the demand driven prices would have on the consumers and the economy as a whole. Rwanda’s downstream petroleum sub-sector is in the control of Ministry of Trade and Industry (MINICOM) which is practically responsible for policy development to steer the growth and functioning of the sub-sector. The business is also regulated by RURA, which is entrusted with the regulation of the downstream petroleum infrastructure, i.e., oil storage depots, petrol service stations and the importation, transmission, distribution, trade of LPG as well as construction and operation of LPG storage and filling plants. Rwanda Standards Board (RSB), another government agency, is responsible for developing standards applicable on the petroleum products that should be traded in

DOWNSTREAM PETROLEUM IN RWANDA Rwanda. These standards aim at protecting MINICOM says the main purpose of the the consumers of petroleum products from petroleum special unit is to streamline the using unauthorized petroleum products. downstream petroleum sector so as to align the Government and the sector players Petroleum Special Unit over oil industry policy issues, promote best industry standards and the creation of a The Government of Rwanda treats petroleum competitive market environment. products with special importance due to their impact on the consumers and the economy as Objectives and Responsibilities of the Unit a whole. That’s why Government established The Unit’s objectives and responsibilities a Petroleum Special Unit in the Ministry of include: Trade and Industry to follow-up on the daily • To ensure that petroleum supply in activities of the downstream petroleum Rwanda is adequate, reliable, efficient business in the country. The special unit was and economical for the country and to the established in 2007. According to the Ministry, consumers according to the prevailing the Petroleum Special Unit established by the petroleum market conditions; Cabinet has three staff members, including • To strengthen the institutional capacity a Coordinator, who doubles as the Unit’s of the government in order to better Director, one staff in charge of Petroleum formulate and implement petroleum Management System and an expert in charge supply policies; of Infrastructure and Regulation. • To ensure public safety and protection

l e W o G

e. r t n e c s l, Go Di

DISCENTRE PETROLEUM COMPANY LTD is a Petroleum Marketing Company based in Kigali, Rwanda. The company specializes in importation and selling of petroleum products in Rwanda and other Partner States of the East African Community (EAC). The company has a strong and growing presence in Rwanda, with petrol stations and service bays in Kigali City, Northern Province, Eastern and Western Provinces respectively. Contact us: African Union Road (KN 3). P.O. Box 6646 Kigali, Rwanda. East African Petroleum Outlook 17 Tel: (+250) 788 301 263 / (+250) 788 316 344 E-mail: s_distribution@yahoo.fr

DOWNSTREAM PETROLEUM IN RWANDA

•

• • •

of public health and the environment in all petroleum supply operations and installations; To ensure access and effective delivery of petroleum products and services of adequate quality at competitive prices for all consumers; To encourage and promote fair competition within the petroleum supply market, to eliminate any preferential treatment of any participant and to prevent monopolistic control of any segment of the supply chain; To create favourable conditions for operators and investors in order to increase the diversification of the sources of supply, and to expand the infrastructure of the supply chain; To ensure a sustainable supply of petroleum products through storage, management and maintenance of national strategic stocks; Ensure standards compliance by the marketers; Analyze and examine international and national petroleum markets and advice accordingly; Advice to all stakeholders on matters related to the downstream petroleum industry in general.

The Role of Private Sector Rwanda’s downstream petroleum sub-sector is dominated by importation, transportation, distribution, wholesale and retail of petroleum products. Currently there are no refining and processing activities since Rwanda doesn’t produce petroleum products. The sub-sector continues to witness an increase in the number of petroleum companies, attracting both local investors and foreign oil companies. Over 30 petroleum companies 18 East African Petroleum Outlook

currently operate in Rwanda, supplying petroleum companies to the private sector, government, NGOs and donor organisations. The increase of the number of oil companies has also seen the number of petrol service stations rise across the country although the number remains small compared to other countries like Kenya and Uganda. Large oil companies such as Societe Petroliere Ltd, Kobil Rwanda and Engen Rwanda, the top three market giants, have a string of petrol stations and car service bays across the City of Kigali and other major towns in Rwanda. They have embarked on construction of new petrol stations to boost their network but they also rent out some of their petrol stations to other users. Emerging oil companies like Merez Petroleum, Gulf Energy and Mount Meru Petroleum Rwanda are also opening new petrol service stations to boost their network of petrol stations in Rwanda. With regard to lubricants, Rwanda’s market continues to witness tough competition of new lubricants. Total lubricants, Engen Lubricants and others such as Rymco, Star and Enoc are also in the battle to win the Rwandan market. Caltex brands, which were previously in the Rwandan market, are also trying to make a comeback although they have not been re-launched. With LPG, some of local and foreign oil companies operating in Rwanda have their own branded LPG. SP, Merez Petroleum, Kobil and Oryx are the dominant suppliers and retailers of branded LPGs. Rwanda is however yet to witness the consumption of LPG on a large scale due to a small number of middle and upper classes who have enough disposable incomes to spend on LPG.

MEREZ PETROLEUM

Transportation

LPG

erez Petroleum Ltd is a privately owned company incorporated under the laws of the Republic of Rwanda.

The company sources, stores, distributes and markets petroleum products in Rwanda and the entire Great Lakes region, bridging the gap between countries like Kenya and Tanzania, with presence of seaport and refineries, and markets with rising demand like Congo, Rwanda and Burundi. Merez Petroleum Ltd has strong partners in the oil industry, competent and experienced staff and vast distribution network. It entered into agreements with major oil marketing companies to provide product handling services to ensure efficiency in product delivery to its clients. The company is based in Rwanda. The central location is important for the company to offer services across East and Central Africa. Rwanda being a member of the East African Community (EAC) offers the company many opportunities to carry out business in the region with less customs and other legal charges. Products & Services Merez Petroleum Ltd offers various petroleum products, including Premium Petrol (PMS), Automotive Diesel (AGO), Kerosene (IK), Fuel Oil (HFO) and Industrial Diesel Oil (IDO), Lubricants and Liquefied Petroleum Gas (LPG). The company also offers services such as transport for transit and local goods and distribution and marketing of fuel products.

Our growing network of Petrol Stations Merez Petroleum Ltd operates ten petrol stations in Rwanda; four in Kigali city and six upcountry in the towns of Huye, Ruhango, Rwamagana, Kibungo, Rubavu, and Karongi. Our target is to increase petrol stations from the current 10 to 17 in the next two years. New petrol stations to be developed will be located in Remera, Kicukiro, Gacuriro, Musanze, Cyanika, Nyagatare, and Rusizi. Clients Merez Petroleum is the market leader in the supply of petroleum products and that’s why our client base keeps expanding. We are proud to be serving Telecommunications providers, oil marketing companies, petroleum retailers, other private companies, Government Ministries and Parastatals, and Non-Governmental Organisations (NGOs). MEREZ INTERNATIONAL The owners of Merez have also the biggest international transport company in the great lakes region called Merez International. It is the leading transport company in the great lakes region with a fleet of 100 trucks. The company offers Transportation of goods in the great lakes region. It bridges the gap between countries like Kenya and Tanzania, with presence of seaport and refineries, and markets with rising demand like Congo, Rwanda and Burundi. Services Merez International provides transport for transit and local goods as well as logistics solutions to our clients within Rwanda and the Great lakes region.

Fuel for journey

CONTACT US: P.O. Box 3425 Kigali-Rwanda Tel: (+250) 252 571150 /Fax: (+250) 252 571164 /Mobile: (+250) 788300830 Email: infor@merezpetroleum.com

www.merezpetroleum.com

SOCIETE PETROLIERE (SP) Ltd

SP Fuel terminal under construction in Rusororo Sector and very soon operational

SOCIETE PETROLIERE (SP) Ltd is a limited a liability company incorporated in the Republic of Rwanda with business interests in petroleum products. With experience of 47 years in the petroleum business, SP has also expanded to the wider East African market, opening two operational subsidiaries, one in Kenya and another in Tanzania. Our core business is importation and distribution of petroleum products which include Diesel, petrol, Kerosene, JET A1, Lubricating Oils and Liquefied Petroleum Gas (LPG). SP Gas The company has a Liquefied Petroleum Gas Filling Plant and has the largest gas market share in Rwanda. SP Gas is available in cylinders of 3kg, 6kg, 2kg, 15kg, 20kg and 38kg all available at our petrol stations. SP Lubricants The company distributes RYMCO lubricating oils in Rwanda. Once used in the car engine, the car moves 10,000km before changing the oil. SP Fuel depot SP Ltd is constructing a fuel storage depot at Rusoro Sector; Gasabo district in Kigali City with the storage capacity of 21 million litres of fuel. SP Aviation SP Ltd participated in the creation and registration of SP Aviation Ltd, an independent company that operates Jet A1 fuel depot at Kigali International Airport since 2010. 20 East African Petroleum Outlook

HIGH QUALITY

Petroleum Products

Liquefied Petroleum Gaz, available at SP Filling plant in Gikondo Industrial area Quality Lubricants for Heavy Trucks & all types of engines. Get the SP Electronic Fuel Card now! Manage your fuel, new product to rely on. Poids Lourds Avenue, P.O. Box 144 Kigali - Rwanda, Tel: +250 788 30 62 32, +250 788 30 62 33, Email: info@sp.co.rw Website: www.petrocom.rw

REGIONAL OIL PIPELINE

Regional oil pipeline in the offing

overnments of Kenya, Uganda and Rwanda have picked Japanese engineering firm Toyota Tsusho as the single consultant to carry out the feasibility study, design and supervision of construction of the oil pipeline that will see Kenya and Uganda start exporting crude oil.

the commitment made by the two implementing governments—the HoimaLokichar-Lamu crude oil pipeline will be completed in 2017/2018 so that crude exports from the two countries can start flowing.

Kenya and Uganda have both found huge deposits of commercially viable crude oil and Toyota Tsusho beat off competition from they are taking steps to commercially exploit other eight firms that had been shortlisted them through exports when production for the job, which will see the project that is begins in less than five years ahead. expected to cost an estimated USD4billion take off. Uganda estimates that its crude oil deposits at 6.5 billion barrels while Kenya estimates The crude oil pipeline, with a distance of oil discoveries in the south of Lokishar basin 1,500km from Hoima in Western Uganda to at 600 million barrels. Kenya’s port of Lamu, connecting to South Sudan at Lochikar basin, is one of the key Refined Petroleum Products Pipeline to Kigali northern corridor integration projects, Whereas the Hoima-Lokichar-Lamu crude bringing together the governments of Kenya, oil pipeline is making progress, the three Uganda and Rwanda. governments are equally paying attention to another pipeline that will transport Toyota Tsusho is expected to complete the refined petroleum products within the three study by April 2015. countries. The awarding of the consultancy contract to Toyota Tsusho comes after the International Refined petroleum products will flow Finance Corporation (IFC), a member of the between the Kenyan city of Eldoret, to World Bank Group, pledged financing worth Uganda’s capital Kampala and then Kigali. USD600million to the oil pipeline. The three governments through their Joint The funding is part of USD1.8 billion loan for Coordinating Commission (JCC) have already projects in the Horn of Africa. invited bids for Expression of Interest for an engineering, procurement and construction The Principal Secretary for Energy in Kenya of the proposed refined petroleum products Joseph Njoroge said the Hoima-Lokichar- pipeline running all the way from Edoret Lamu crude oil pipeline will be developed as through Kampala to Kigali. a single project but then split into two lots The Eldoret-Kampala-Kigali refined for each country—Kenya and Uganda—to petroleum products pipeline is one of the implement the part that is in their jurisdiction. Northern Corridor Integration Projects that It is expected that—and this is aims to accelerate regional development. 22 East African Petroleum Outlook

MAXI STATION

e h t On together y e n r u Jo

MAXI STATION is a petroleum marketing company based in Rwanda. It imports and retails petroleum products including super and diesel. It has two petrol stations; one in Kigali city which operates 24hours and another one in Cyangugu.Both petrol stations have service bays.

East African Petroleum Outlook