NAIROBI, Kenya, Oct 17 – Regional fuel marketer KenolKobil has expanded its business in the Democratic Republic of Congo (DRC), announcing the acquisition of a 4,000 cubic meter (m3) terminal.
Having signed an agreement with World Oil Congo SPRL for the terminal located in Lubumbashi, KenolKobil will begin its downstream operations into the country.
The Group’s Managing Director Jacob Segman revealed that a demand for petroleum products in the Lubumbashi market has increased in the recent past.
“DRC and Lubumbashi in particular, is an exciting market rich in large scale mining activities that require huge quantities of petroleum products both refined and lubricants,” he said in a statement.
He added that the acquisition is strategic as it plays a complementary role to KenolKobil’s existing subsidiaries in Zambia, Mozambique and Tanzania.
“The acquisition of the Terminal in Lubumbashi plays an important role in covering the Katanga Province, Southern Congo region and will provide a stepping stone for the company to eventually venture into the bigger retail and mining markets of DRC,” Segman explained.
The DRC terminal becomes that ninth subsidiary to join the KenolKobil Group.
However, the oil marketer has had a presence in the DRC market, serving as one of the largest exporters to Eastern part of the county for several years.
Earlier this year KenolKobil acquired a depot in Burundi, a terminal in Uganda and storage facilities in Dar-es-Salam, Tanzania and Beira, Mozambique in efforts to boost its storage capacity.
The oil group announced plans of the development of a 6,000m3 terminal in Lusaka, Zambia that will see its storage capacity increase to 70,000m3 for the year.
KenolKobil posted an 83 percent jump in first-half pre-tax profit to Sh2.16 billion primarily driven by a 38 percent rise in sales and lower distribution costs.