Technically insolvent National Oil Corporation of Kenya (NOCK) requires a cash injection of KSh 7.5 Billion to keep running for another year.
According to a report by Leadwood Energy and Kurrent Technology consultants, the state can either pump in more cash into the corporation or seek an investor to take over the fuel stations, cooking gas outlets, and other downstream operations.
The two consultants, hired to review the business by KCB Group and Stanbic Bank, pointed out that the oil marketer must be restructured before any cash injection.
The consultants point out mismanagement, overstaffing, and operational efficiencies for the troubles at National Oil Corporation.
Technically insolvent with a debt of KSh 5 Billion, National Oil Corporation is said to have weak management and financial controls, which needs fixing.
The National Oil Corporation of Kenya does all aspects of the petroleum supply chain, including upstream oil and gas exploration. It is also in the midstream petroleum infrastructure development as well as downstream marketing of petroleum products.
In the upstream, National Oil facilitates and directly participates in oil and gas exploration activities in Kenya.
National Oil is on the list of African national oil companies directly involved in searching for oil and gas in Kenya.
It operates its exploration acreage in Block 14T, located within the Tertiary Rift Basin, and runs from Lake Bogoria down to Lake Magadi Basin in Kenya and Tanzania.
The state oil firm has a growing retail network of over 99 service stations spread throughout Kenya.
In addition to its fuels business, National Oil has developed and deployed several products and services, including its SupaGas brand of Liquefied Petroleum Gas (LPG), the Supa range of motor and industrial lubricants.
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