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Kenya: Gulf Petrochem Group acquire Essar Petroleum East Africa
NAIROBI, Kenya (Capital Markets in Africa) — Gulf Petrochem Group today announced the official acquisition and name change of Essar Petroleum East Africa Ltd to ASPAM Energy (Kenya) Ltd. The deal will enhance the group’s integrated services and products for the downstream supply chain in the oil and gas sector in East Africa.
Gulf Petrochem Group secured the due approvals from the Energy Regulatory Commission (ERC), the Competition Commission 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.
ASPAM Energy (Kenya) 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, Base Oil, etc. and will now naturally focus on these products in East Africa. This will contribute in the growth of the East African economy.
“With the global market for bitumen expected to reach $95.77 bn by 2020 according to a new study by Grand View Research, Inc. 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 capitalize on a market which we plan to make our East African Hub”, said Gulf Petrochem Group Managing Director, Mr. Sudhir Goyel.
He went on to add, “Prior to our acquisition of Essar (Kenya) Ltd, the company enjoyed roughly a 1.1% market share. With our experience, market knowledge, portfolio and global reach we hope to significantly increase that market share and consolidate the group’s offering in East Africa.”