Gulf Petrochem Group buys Essar Petroleum East Africa
The deal is expected to enhance the group’s integrated services and products for the downstream supply chain in the oil and gas sector in East Africa. It is also expected to boost the firm’s market share in Kenya currently estimated at 1.1 percent.
Gulf Petrochem Group is keen on the Kenyan market with hopes of using it as springboard for its East African operations.
“Our group has recognized the potential for business growth within the African continent. Through this acquisition, ASPAM Energy (Kenya) will allow us to efficiently cater to East African customers and capitalise on a market which we plan to make our East African Hub”, said Sudhir Goyel, managing director of Gulf Petrochem Group.
Goyel said the transaction had secured the due approvals from the Energy Regulatory Commission (ERC), the Competition Authority of Kenya (CAK) and other regulatory bodies.
Aspam Energy Kenya will continue with the commitment to cater to customers in East Africa who were earlier serviced by Essar Petroleum East Africa Ltd in the fuel retailing segment. The company will now have license to market petroleum products through outlets earlier serviced by Essar Petroleum East Africa ltd.
It also intends to develop storage and retail infrastructures as part of its long term goals in East Africa along with the expansion of retail networks through organic and inorganic routes of growth.
Aspam Energy Kenya is part of Gulf Petrochem Group, which has a trading arm active in trading Fuel Oil, Gas Oil, Bitumen and Base Oil.
Essar Petroleum East Africa is owned by Essar Energy Overseas Limited with 99.7 percent and Essar Energy Holdings Limited with 0.3 percent. ■