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The planned sale of Chevron (Caltex brand in Kenya) distribution and
network in Kenya is apparently developing into an interesting stage
that will build up to December of this year.
It is understood that a number of local and regional oil companies are
interested in the acquisition. These include the stateowned
National Oil Corporation, Gulf Africa Petroleum Corporation (Gapco),
Oil Libya, and Essar.
Gapco in which Reliance has a large strategic stake, owns and operates
large storage terminal facilities and a retail distribution network in
several key capitals in East and Central Africa. They include Dar es
Salaam (Tanzania), Mombasa (Kenya) and Kampala (Uganda), with a large
network covering retail and industrial segments.
A source at National Oil confirmed that it was interested in buying
Chevron’s business, but said it was not willing to discuss the subject,
and instead referred FJ to the Ministry of Energy, which is doing the
bidding on behalf of Treasury, the sole shareholder in National Oil.
The law, as spelt out under the Energy Act, requires Chevron to notify
the Energy Regulatory Commission (ERC) of its intention to divest or
transfer the licence to another oil marketer. ERC has yet to receive
any official notification from Chevron, giving credence to speculation
by local media that a suitable buyer has yet to be identified.
"If the sale of Chevron will be through competitive bidding, this
process may take some time to be concluded," said Mr Peter Nduru, Head
of Petroleum at ERC.
Treasury is reportedly pushing for Chevron to sell off only its Kenyan
business unit to National Oil, despite plans by Chevron to sell its
Kenya and Uganda operations as one bundle.
With the Caltex brand departure expected in 2009 , it will be the
fourth largest oil operator to leave the Kenyan market after Agip,
Mobil and BP in recent years. Chevron, Shell and BP are the three oil
marketers, holding more than 50 per cent share at the Kenya Petroleum
Refineries Ltd, while the Government controls the rest.
Indications from the Ministry of Energy are that private shareholding
at the refinery is likely to end up with Tamoil of Libya (25 per cent)
and Essar of India (25 per cent). "An upgraded refinery will add
value to crude oil, by yielding 18 per cent more high value products,
which would otherwise be left as low value fuel oil", says Mr George
Wachira, General Manager, and PIEA.
Market share figures based on inland petroleum sales, as at June2008,
place Shell as the leading oil marketer, controlling 21.31 per cent
share of the retail market. Total has 20.07 per cent, Kobil 18.06 per
cent, Chevron 12.10 per cent, Libya Oil 7.88 per cent, Kenol 5.20 per
cent, National Oil 3.65 per cent and Gapco 2.62 per cent.
PetrolWorld 081008 Press Here for Summary of exit of Major Oil Companies
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