In a move aimed to rescue the struggling state-owned National Oil Corporation of Kenya (NOC), the government has handed over more than 99 fuel stations to French energy firm RUBiS Energy Kenya.
- •The non-equity strategic partnership is part of a broader restructuring plan aimed at revitalizing the state-owned entity and preventing its collapse.
- •The partnership comes as NOC faces severe financial challenges, with debts amounting to Sh8.3 billion and a negative balance sheet.
- •The restructuring plan involves splitting NOC into three subsidiaries under a single holding company.
The government will retain control of strategic assets through two subsidiaries, while the downstream market entity, which includes the fuel stations, will be managed by RUBiS Energy. This arrangement aims to make the downstream operations profitable, with profits being shared between the government and RUBiS Energy Kenya.
The Cabinet has approved the conversion of NOC into a group holding company with three distinct subsidiaries:
- •NOC Upstream Limited: Focused on exploration and upstream production activities.
- •NOC Trading Limited: Specializing in holding strategic stocks of petroleum products for import and export.
- •NOC Downstream Limited: Concentrating on the marketing and distribution of petroleum products.
Previous media reports indicate that RUBiS Energy will inject KES 3 billion for working capital and an additional KES 3 billion for the revamp of NOC’s fuel stations. In return, RUBiS Energy will earn 30% of the profits from fuel sales.
“By leveraging diverse expertise, resources, and networks, we can create a competitive edge and generate value for all stakeholders involved,” Olivier Sabrié, CEO of RUBiS Energie East Africa and Managing Director of RUBiS Energy Kenya.
READ;
Rubis Energie Revenues Doubled after Acquiring KenolKobil
Ola Energy to Declare Staff Redundancies in Restructuring Move
