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Kenya resolves refinery dispute with KenolKobil

Published 09/24/2010, 04:18 AM
Updated 09/24/2010, 04:20 AM
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NAIROBI, Sept 24 (Reuters) - Kenyan fuel marketer KenolKobil has ended its row with the country's sole refinery and expects its crude oil import licence to be re-instated, the company said on Friday.

Under a deal brokered by the top official at the east African nation's ministry of energy, Patrick Nyoike, KenolKobil will pay the refinery 600 million shillings ($7.39 million) in processing arrears and will drop all legal suits against the refinery.

In early Friday trading, KenolKobil was the bourse's biggest gainer, jumping 9.5 percent to 10.35 shillings.

The long-running dispute hurt its share price, which at the height of the row fell almost 20 percent from a July high of 11 shillings.

Pump prices had also gone up as a result of the dispute as marketers anticipated a supply squeeze after the energy regulator revoked the licence of the group, which supplies about a fifth of the Kenyan market.

KenolKobil has operations in seven African countries. (Reporting by Duncan Miriri; Editing by Michael Shields)

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