Ethiopia: National Oil Considers International Downstream Expansion

  National Oil Ethiopia Plc (NOC) has had a significant impact in fuel distribution since it was founded in 2004. The company is now considering expanding its fuel distribution network in East African.  The first two regions are Southern Sudan and Djibouti.

 NOC intends to develop a fuel service station network backed up with fuel storage and handling facilities to provide fuel retailing and commercial fuel services in these countries. It is understood from local media that the company has sought operational licenses.

“We have only a plan and we are only exploring business opportunities in these countries. We are not sure whether we will be entering these markets or not” said Tadesse Tilahun, CEO and shareholder of NOC. The CEO explained that NOC is just investigating business opportunities in neighboring countries and has not made a final decision to enter the regional markets.

The National Oil Company currently operates a fuel retail network of more than 100 service stations across the country and has plans to expand the network in Addis Ababa as well as specific regions in Ethiopia. Other fuel distribution developments include an aviation fuel facility at the main airport operated by Ethiopian Airlines as well as
constructing a new fuel depot with storage capacity of 6 million litres in Dukem. NOC & Total Oil have 40% market share.

Staying in Ethiopia, tax issues have been raised by the Ethiopian Revenues and Customs Authority (ERCA) has recently been pursuing many big businesses for unpaid taxes. Amongst these are notices of 210 million to Libya Oil Ethiopia Ltd, 109 million Birr to BGI and 53 million to Bambis Supermarkets. BGI and Bambis have reached administrative settlements and have started paying in installments.  Libya Oil has contested the tax charges and it is anticipated that the case will go to court. Both Total Oil and National Oil

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