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The National Oil Corporation of Kenya (NOC) has reached out to the top three oil multinationals in the country as it steps up efforts to strike a deal with a strategic partner to boost its turnaround plan. NOC wrote to Vivo Energy, TotalEnergies Marketing Kenya and Rubis last week as the search for a non-equity strategic partner enters the homestretch.
The National Oil Corporation of Kenya (NOC) has reached out to the top three oil multinationals in the country as it steps up efforts to strike a deal with a strategic partner to boost its turnaround plan. NOC wrote to Vivo Energy, TotalEnergies Marketing Kenya and Rubis last week as the search for a non-equity strategic partner enters the homestretch.
The responses will set the stage for talks with any of the firms and a possible deal to be struck by the end of this month. The oil marketer who clinches the deal is expected to inject at least Sh5 billion into NOC, helping it revamp the downstream business of the State-owned firm in a bid to end its overreliance on the Treasury.
The market-sounding exercise is aimed at establishing if the top three marketers are keen to enter into a non-equity partnership with NOC. This follows the Cabinet’s approval for the revival and commercialisation of the firms, with the partner expected to inject working capital and cash to upgrade the stations.
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NOC had been given up until the end of last month to onboard an oil marketer who would pump billions of shillings into the firm, but the deadline was pushed to the end of October amid delays from the Treasury to give the corporation a go-ahead for the deal. Vivo Energy is the market leader in Kenya with a share of 22% as at December last year, followed by TotalEnergies Marketing at 16.39% and Rubis (10%).
