The Kenya National Oil Corporation (NOC) has signed a landmark Memorandum of Understanding (MoU) with Algeria’s Sonatrach SPA, Africa’s largest energy company, in a move set to strengthen Kenya’s position in the regional oil and gas market and attract fresh investment into the sector.
The agreement, signed at Sonatrach’s headquarters in Algiers, opens up opportunities across the petroleum value chain and cooperation between the two companies will span upstream exploration and production, the supply of petroleum products, the import of liquefied petroleum gas (LPG), the development of storage and distribution infrastructure, and the creation of strategic reserves.
The MoU also includes knowledge transfer and staff training, as well as the establishment of a trading platform to support regional energy flows.
Sonatrach, founded in 1963, is the seventh-largest oil and gas company glob-ally and Africa’s first oil “major”.
The MOU was signed by National Gil Corporation of Kenya (NOK partnership with Rubis Energy Kenya in the oil and gas sector is key to unlocking the conti-nent’s potential.” he said.
NOC CEO Mr Leparan ole Morintat and Sonatrach CEO Mr. Rachid Hachichi in Algiers, Algeria.
With 154 subsidiaries, it dominates Algeria’s econ-omy, contributing more than 90 per cent of government export revenue.
Rachid Hachichi, Sonatrach’s President and CEO, said the partnership reflects the firm’s commitment to building stronger African alliances.
“Sonatrach remains un-wavering in building fruitful partnerships and pursuing Africa’s Sustainable Development Goals.
This new partnership could help NOC secure reliable and competitively priced fuel imports, particularly LPG, which is increasingly in demand among Kenyan households and businesses.
Access to Sonatrach’s trading platforms and sup-ply networks could also reduce Kenya’s exposure to global price shocks and cut import costs over time.
This deal also signals Nairobi’s intention to deepen energy-sector reforms and position Kenya as a regional
The agreement, Mr Morintat said comes at a pivotal time for NOC, which is un-der-going a restructuring process to become a holding company comprised of three subsidiaries dedicated to exploration, trading and infrastructure.