The National Oil Corporation of Kenya (Nock) is in fresh quest for a KSh13 billion bailout from the National Treasury to pay bank loans and meet operating costs.
According to Nock Chief executive Gideon Morintat, KSh6.6 billion will be used to pay bank loans, KSh3 billion for operating costs and a further KSh3 billion for oil exploration on Block 14T in the Rift Valley basin.
Nock owes KCB Group KSh4.82 billion and Stanbic Bank KSh1.8 billion in defaults.
The Ministry of Petroleum estimates Nock’s monthly operating costs at KSh70 million, which have been compounded by growing losses as the State-owned firm struggles to cope with stiff competition from international oil firms.
The National Oil Corporation of Kenya (NOCK), is a state corporation of Kenya founded by Act of Parliament in 1981, with a mandate of participating in all aspects of the Kenyan petroleum industry.
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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