Nock eyes cash from depot sale to finance operations
National Oil Corporation of Kenya said it is in talks with the Kenya Pipeline Company to dispose part of its Nairobi-based main supply source for fuels
National Oil Corporation of Kenya (Nock) expects to raise billions of shillings through assets sale this year, part of which would boost its operational efficiency, the state oil marketer has said. The company said it is in talks with the Kenya Pipeline Company to dispose part of its Nairobi-based main supply source for fuels.“The talks are being spearheaded by the Ministry of Energy and Petroleum,” it said in response to the Business Daily queries.It refuted claims the proceeds of the sale will be used to offset non-performing facilities at a local bank.The Nairobi National Terminal (NNT) situated on Nanyuki Road, in Industrial Area is Nock’s main supply source for fuels, liquefied petroleum gas (LPG) and lubricants for Nairobi and its environs including Mt Kenya region.Nock only recently advertised for a public tender to upgrade the depot facilities.Nock, incorporated in 1981, is involved in the marketing of petroleum products (downstream), development of petroleum infrastructure (midstream) and exploration of oil and gas (upstream activities).The firm began operations in 1984 and its strategic mandate is to play a price-stabilising role and arrest any cartel-like behaviour by private marketers.
The State oil marketer has been eyeing to scale up its specialty facilities for LPG and lubricants.”With LPG penetration currently standing at only 10 percent, this presents an opportunity for growth for the corporation. Our SupaGas LPG brand has been growing at an average of 40 percent year on year for the past two years,” said Nock chief executive MaryJane Mwangi early this year.Nock also earlier announced plans to open 185 new retail stations across the country over the next three years as part of its turnaround strategy.