The government has entered a deal with Saudi Aramco and Emirates National Oil to supply petroleum products to Kenya.
In a presser on Monday, March 23, Energy and Petroleum CS Davis Chirchir confirmed the same, noting that the move is in a bid to nationalize oil imports.
The CS disclosed that the tender advertised by his ministry attracted seven companies, with the company settling on Saudi Aramco and Emirates National Oil.
The government signed a six-month credit-based deal with the companies, meaning the government will pay for the products at a later date.
Saudi Aramco will supply monthly consignments while Emirates National Oil will supply three cargo consignments of Super every month for the next six months.
“There will be a price adjustment due to the freight charges. Also, IOC’s (International Oil Companies) will be free to pay using the Kenyan Shilling to ease spot pressure on the dollar,” Chirchir said.
Abbreviated as Aramco, Arabian American Oil Company was established in 1933 following a concession agreement between Saudi Arabia and the Standard Oil Company of California (SOCAL).
Drilling began in 1935 after the company surveyed the Saudi desert for oil. In 1938, they finally reach the oil and the production began immediately after.
As of 1949, the company’s production of crude oil hit 500,000 barrels per day, and by 1971, shipments of crude oil and petroleum products had surpassed one billion barrels per year for the first time.
In 1989, Aramco began its transformation from an oil-producing and exporting company to an integrated petroleum enterprise with the formation of Star Enterprises.
By the 2000s, the company was investing in technological solutions to achieve cleaner and more efficient production and consumption of oil.
This included enhancing the efficiency and sustainability of transportation with new high-performance engines and fuels.
Emirates National Oil
Established in 1993, Emirates National Oil Company Limited (ENOC) is a leading integrated global oil and gas player operating across the energy sector value chain.
The ENOC Group comprises more than 30 related subsidiaries involved in refining, lubricant blending, storage, aviation and retail.
With over 60 markets, the company employs over 9,000 employees and it uses world-class customer service, latest innovations and technologies and best practices.