The National Oil Corporation of Kenya Ltd (NOC) has entered into a strategic partnership with RUBiS Energy Kenya, marking a significant milestone in strengthening Kenya’s oil and gas sector. This collaboration follows the successful completion of the Specially Permitted Procurement Procedure (SPPP) for a non-equity strategic partner, in compliance with the Public Procurement and Asset Disposal Act, 2015 (PPADA).
Hon. Opiyo Wandayi, Cabinet Secretary for Energy and Petroleum, expressed enthusiasm about the partnership, stating, “This collaboration marks a transformative step in strengthening the National Oil Corporation of Kenya, enhancing its capacity and creating long-term value for the citizens of this great republic. With this renewed profitability, the Corporation will be well-positioned to generate returns and, in the future, begin paying dividends to its shareholder.”
Leparan Ole Morintat, CEO & Managing Director of NOC, emphasized the complexities of the oil and gas industry, noting, “This sector is highly complex and capital-intensive, requiring substantial investment and operational flexibility to stay competitive. Given the significant demand for government resources, securing shareholder capital injection was not feasible. As a result, NOC sought a non-equity strategic partner to provide the financial support and technical expertise needed to revitalize the company and restore profitability. This process, initiated in 2019, has now culminated in the selection of RUBiS Energy Kenya as our non-equity strategic partner.”
The partnership is a crucial component of NOC’s broader turnaround strategy, designed to:
- Scale up downstream operations and strengthen NOC’s presence in petroleum product trading and marketing.
- Ensure security of petroleum supply, stabilize fuel prices, and reduce the cost of living and doing business in Kenya.
- Address and clear legacy debts while improving financial sustainability.
As a non-equity strategic partner, RUBiS Energy Kenya will provide:
- Financial Support: Working capital financing to enhance NOC’s liquidity and market expansion efforts.
- Market Development Initiatives: Support in increasing the market reach of NOC’s products.
- Capital Expenditure (CAPEX) Financing: Funding for rebranding, rehabilitation, and expansion of NOC’s retail network.
- Training and Capacity Building: Skills transfer and development initiatives to empower NOC’s workforce.
- Enterprise Resource Planning (ERP) System Deployment: Modernizing business processes to enhance operational efficiency and customer experience.
- Collaboration in the Fuel Card Business: Enhancing customer engagement and service delivery.
Olivier Sabrié, CEO of RUBiS Energie East Africa and Managing Director of RUBiS Energy Kenya, emphasized the importance of strategic collaborations in driving business success. “In today’s dynamic market environment, collaborations are key to driving growth and success. By leveraging diverse expertise, resources, and networks, we can create a competitive edge and generate value for all stakeholders involved. RUBiS Energy Kenya is committed to supporting the Corporation through working capital financing, management and branding support, and transferring critical capabilities and skills to the National Oil team.”
