Turkana Kenya . Without fiscal metering or custody transfer regulations in place, the transport of oil from Lokichar to Mombassa is illegal and tantamount to fraud.
The measurement of oil transfer is an international legal requirement and must be in place before any transfer of oil takes place. I challenge the Kenyan government and Tullow oil to present evidence that this transfer of oil and its measurement has taken place according to international regulations.
Why you will ask. Well without regulations and strict measurement the amount of oil transported can be manipulated to suit the producers and owners …
More fraud if they cannot prove the exact quantities of oil transported. This will impact economics.
What should happen is the oil transfer from Lokichar storage tanks to containers should be measured by international sanctioned meter and witnessed by government trade officials. Then when it reaches the final tanks at Mombassa the same should occur. Says Dennis Morton on Facebook