**Nairobi**: The National Oil Corporation of Kenya Ltd has formalised a vital partnership with Rubis Energy Kenya, aimed at enhancing capabilities and competitiveness in the oil and gas sector through strategic funding and expertise while stabilising fuel prices and improving service delivery.
The National Oil Corporation of Kenya Ltd (NOC), a government-owned entity, has formalised a strategic partnership with Rubis Energy Kenya aimed at fostering advancements in Kenya’s oil and gas sector. The announcement was made via a press release on Tuesday, March 18, detailing the partnership as a significant step towards the enhancement of NOC’s capabilities within the petroleum products market.
The initiative follows the successful completion of the Specially Permitted Procurement Procedure (SPPP) for the selection of a non-equity strategic partner, as outlined in the Public Procurement and Asset Disposal Act, 2015 (PPADA). The collaboration is integral to NOC’s overarching turnaround strategy, which seeks to bolster its downstream operations and secure a more competitive stance in the petroleum trading landscape.
Under the terms of this partnership, Rubis Energy Kenya will not take equity ownership in NOC but will provide essential financial support, including working capital, market development initiatives, and capital expenditure (CAPEX) financing. This funding will facilitate the rebranding, rehabilitation, and expansion of NOC’s retail network, making it more robust in a competitive market.
Moreover, the partnership is designed to include training programmes, capacity building, and skills transfer for NOC employees. A new Enterprise Resource Planning (ERP) system will also be deployed to enhance business processes and improve customer experience. An additional focus will be on developing a collaborative fuel card business aimed at improving customer engagement and overall service delivery.
The strategic partnership is expected to contribute significantly to stabilising fuel prices, ensuring a secure supply of petroleum, and consequently reducing the cost of living and operating a business in Kenya. It also aims to assist NOC in resolving outstanding debts and enhancing its financial sustainability.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi expressed optimism about the collaboration, describing it as a transformative step for the National Oil Corporation of Kenya. He remarked that this partnership would not only strengthen the corporation but also generate long-term value for Kenyan citizens. “With this renewed profitability, the Corporation will be well-positioned to generate returns and, in the future, begin paying dividends to its shareholders,” Wandayi noted.
Leparan Ole Morintat, the CEO of NOC, acknowledged the complexities and capital-intensive nature of the industry, highlighting the challenges NOC has faced. He stated that securing shareholder capital was unfeasible given the immense demand for government resources, leading to the decision to seek a non-equity partner to inject necessary financial support and expertise into the company. This pursuit began in 2019, culminating in the partnership with Rubis Energy Kenya.
Olivier Sabrié, CEO and Managing Director of Rubis Energy East Africa, reiterated the significance of strategic partnerships in today’s rapidly evolving market. He highlighted that by merging diverse expertise and resources, the partnership aims to create a competitive advantage and provide value to all stakeholders involved. “Rubis Energy Kenya is committed to supporting the Corporation through working capital financing, management and branding support, and transferring critical capabilities and skills to the National Oil team,” Sabrié affirmed.
The partnership between NOC and Rubis Energy is anticipated to play a pivotal role in redefining Kenya’s oil and gas sector by fostering growth and increasing competitiveness.
Source: Noah Wire Services
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