UAE-based Gulf Petrochem Group has acquired Essar Petroleum East Africa Ltd., following which its name has been changed to ASPAM Energy (Kenya) Ltd
According to the companies, the deal is expected to enhance the newly-formed firm’s integrated services and products for the downstream supply chain in the oil and gas sector in East Africa.
“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 Gulf Petrochem Group managing director Sudhir Goyel.
A new study by Grand View Research has predicted that the global market for bitumen is expected to reach nearly US$96bn by 2020, making the new company’s formation of high relevance to East Africa. Moreover, Gulf Petrochem Group has a trading arm that sells fuel oil, gas oil, bitumen and base oil among other products. ASPAM Energy (Kenya) Ltd is expected to continue focusing on supplying these products to East Africa, and play an active role in enhancing the region’s economy.
To facilitate the deal smoothly, Gulf Petrochem Group has secured due approvals from the Energy Regulatory Commission (ERC), the Competition Commission and other regulatory bodies. ASPAM Energy (Kenya) will continue to cater to customers in East Africa, who were earlier serviced by Essar Petroleum East Africa Ltd in the fuel retailing segment.
Further on, ASPAM Energy (Kenya) will also have the license to market its petroleum products through outlets earlier serviced by Essar Petroleum East Africa Ltd. It also intends to develop storage and retail infrastructure as part of its long-term goals in East Africa, along with the expansion of retail networks through organic and inorganic routes of growth.
