Total sells some Kenya assets to NOCK

September 14, 2010
Shares

, NAIROBI, Kenya, Sep 14 – The National Oil Corporation of Kenya has concluded an Asset Purchase Agreement with Total Kenya, in part of plans to expand its market share to 15 percent by 2030.

NOCK Acting Managing Director Sumayya Athmani said that although the two parties are still working on the legal and administrative requirements of the take over, the arrangement which increases their retail outlets by five will enable them to adequately distribute the allocated petroleum market quota of 30 percent.

National Oil will acquire the following assets from Total Kenya Ltd;   a retail petrol station located along Waiyaki Way in Nairobi, another along Ngong Road; one in Mtito Andei along the Nairobi Mombasa Highway and two others in Thika and Garissa towns.

“All the retail petrol stations are located in areas where National Oil has not had a presence before. The two retail filling stations located in Nairobi and the one at Mtito Andei are located along busy highways and will be instrumental in fulfilling the role of stabilising the pricing of petroleum products across the country,” said the MD.

The outlet in Thika town, she said, was strategically placed in a high potential growth area while the one in Garissa was motivated by the company’s desire to have a footprint in the North Eastern region.

The deal will also see it acquire a Liquefied Petroleum Gas filling plant located along Nanyuki Road in Nairobi which in the long run will enable it to stabilise cooking gas prices.

This is because with the acquisition of the plant, NOCK will no longer require the services of third party installations to refill gas cylinders and this is expected to cut costs for the end consumer.

“The facility will also provide enhanced safe, efficient and affordable hospitality to other companies selling cooking gas, especially the smaller players,” Ms Athmani said.

The acquisition brings to 70 NOCK’s branch network with plans to acquire, lease and construct more retail outlets being at an advanced stage.

The takeover of various outlets by the corporation which seeks to grow its distribution network from to 165 stations in the next three years, is meant to enable it achieve its mandate of influencing petroleum products in the market, which is currently controlled by multinationals.

Shares

Latest Articles

Stock Market

Most Viewed