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    The Petroleum Industry in Kenya 2021

    Carole Veitch | Kenya | 30 June 2021

    The Petroleum Industry in Kenya 2019

    Louise Mitchell | Kenya | 25 March 2019

    The Petroleum Industry in Kenya 2017

    Louise Mitchell | Kenya | 17 July 2017

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    Report Summary Table of Contents
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    Report Coverage

    This report focuses on Kenya’s petroleum industry, which encompasses upstream oil and natural gas exploration and development activities, midstream bulk storage and transportation of fuel and petroleum products, and downstream activities, including manufacturing and the wholesale and retail trade in refined fuels and petroleum products. It includes information on the size and state of the sector, consumption and production statistics and developments in the upstream and downstream markets. There are profiles of 26 companies including Rubis Energy Kenya, the largest player in the Kenyan downstream petroleum market and other major players such as Total Kenya, Vivo Energy, OLA Energy and the National Oil Corporation of Kenya.

    Introduction

    Kenya’s petroleum industry encompasses upstream oil and natural gas exploration and development activities, midstream bulk storage and transportation of fuel and petroleum products, and downstream activities, including manufacturing and the wholesale and retail trade in refined fuels and petroleum products. Following Tullow Oil’s discovery in 2012 of crude oil reserves in northern Kenya’s Lokichar sub-basin, estimated at over 4 billion barrels, the East African country has been touted as Africa’s next major oil producer. Results from an early oil pilot project indicate that the reserves in Turkana’s Amosing and Ngamia fields are commercially viable, however, the coronavirus pandemic and other setbacks have delayed the development of the oilfields for commercial production. The Kenyan government remains committed to the advancement of the country’s oil and gas sector and is hoping to secure KSh500bn (Kenyan shillings) (US$4.55bn) in investment to construct crude oil processing and storage facilities, along with an oil pipeline to connect the Lokichar oilfields to the Indian Ocean island port of Lamu.

    Strengths

    • Economic growth of more than 5% per annum over the past decade has seen Kenya become one of the largest economies in sub-Saharan Africa.
    • Kenya is a strategically located economic hub, which is well-positioned to serve its land-locked neighbours.
    • Major international players have a presence in the domestic petroleum sector.
    • The Kenyan government supports the development of the petroleum sector and has incentivised foreign investment.

    Weaknesses

    • Corruption is endemic, particularly in the public sector.
    • Enforcement of regulations is inadequate and malpractices such as fuel adulteration and illegal gas cylinder refilling are common.
    • Experienced professionals are in short supply.
    • Kenya’s only crude oil refinery is no longer operational and the country has to import refined petroleum.

    Opportunities

    • Opportunities in the midstream oil industry centre around the construction of storage facilities and an oil pipeline connecting the northern Turkana oil fields to the port of Lamu.
    • Seismic surveying in 2021 will help to identify opportunities in the offshore Lamu Basin.
    • The creation of a single African trade bloc provides for the expansion of intra-African trade.
    • The discovery of crude oil in northern Kenya presents opportunities for local processing of petroleum products.
    • The liquified petroleum gas market offers high growth potential.
    • The production of cleaner fuels and sustainable biofuels, including biodiesel.
    • The provision of hydrogen-filling services and electric vehicle charging points at service station forecourts.

    Threats

    • Domestic economic pressures resulting in lower levels of government expenditure and weaker private sector investment.
    • Funding shortfalls leading to the delayed implementation of projects.
    • Geopolitical events, regional instability and the escalation of terrorist activity.
    • Global recessionary pressures, resulting in weaker foreign direct investment inflows.
    • The coronavirus pandemic poses an ongoing threat to lives and livelihoods. An increase in infections is likely to cause further work stoppages and supply chain disruptions.
    • The potential for political protests to escalate into violence in the run-up to Kenya’s 2022 elections.

    Outlook

    Although green energy features prominently in Kenya’s energy mix, the country still relies heavily on petroleum products. Despite the impact of the coronavirus pandemic and concerns about further supply chain disruptions, role players say there are opportunities across all subsectors of the petroleum value chain. Products offering high growth potential include liquified petroleum gas and biofuels. With the Kenyan economy projected to grow by 6.9% in 2021, analysts anticipate that demand for oil and gas will strengthen to power Kenya’s economic recovery.

    Read More..
    The Petroleum Industry in Kenya
    The Petroleum Industry in Kenya 2021

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    R 1 900.00(ZAR) estimated $104.52 (USD)*

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.16 (USD)*

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    Historical Reports

    The Petroleum Industry in Kenya 2019-03-25

    R 1 900.00(ZAR) estimated $104.52 (USD)*

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    The Petroleum Industry in Kenya 2017-07-17

    R 1 900.00(ZAR) estimated $104.52 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 4
    2. COUNTRY PROFILE 4
    2.1. Geographic Position 6
    3. DESCRIPTION OF THE INDUSTRY 9
    3.1. Industry Value Chain 12
    4. SIZE OF THE INDUSTRY 13
    5. STATE OF THE INDUSTRY 17
    5.1. Local 17
    5.1.1. Corporate Actions 23
    5.1.2. Regulations 23
    5.1.3. Enterprise Development and Social Economic Development 25
    5.2. Continental 26
    5.3. International 30
    6. INFLUENCING FACTORS 34
    6.1. Coronavirus 34
    6.2. Economic Environment 35
    6.3. Government Interventions 36
    6.4. Energy Demand 37
    6.5. Corruption 38
    6.6. Technology, Research and Development (R&D) and Innovation 38
    6.7. Labour 40
    6.8. Environment, Health and Safety Concerns 41
    7. COMPETITION 43
    7.1. Barriers to Entry 44
    8. SWOT ANALYSIS 45
    9. OUTLOOK 46
    10. INDUSTRY ASSOCIATIONS 46
    11. REFERENCES 47
    11.1. Publications 47
    11.2. Websites 47
    COMPANY PROFILES 52
    AFRICA FUELS & LUBRICANTS LTD 52
    BRENNTAG KENYA LTD 54
    CANON CHEMICALS LTD 56
    COLT PETROLEUM LTD 58
    DALBIT PETROLEUM LTD 59
    ECOFIX (K) LTD 61
    GALANA OIL KENYA LTD 63
    GAPCO KENYA LTD 65
    GULF ENERGY HOLDINGS LTD 67
    HASS PETROLEUM (KENYA) LTD 69
    KENYA PETROLEUM REFINERIES LTD 71
    LUBESOL KENYA LTD 73
    MIDLAND ENERGY LTD 75
    MOGAS KENYA LTD 76
    NATIONAL OIL CORPORATION OF KENYA LTD 78
    OLA ENERGY KENYA LTD 81
    ONE PETROLEUM LTD 82
    ORYX ENERGIES KENYA LTD 84
    PETROKENYA OIL COMPANY LTD 86
    PREMIUM ENERGY KENYA LTD 87
    RUBIS ENERGY KENYA PLC 88
    SEPYANA OIL EAST AFRICA LTD 91
    THIKA WAX WORKS LTD 93
    TOSHA PETROLEUM LTD 94
    TOTAL KENYA PLC 95
    VIVO ENERGY KENYA LTD 99

    Report Coverage

    This report focuses on the manufacture of petroleum products from crude oil and natural gas in Kenya, and the wholesale and retail trade of these products. Information on the manufacture of lubricating oils and greases, primarily from other organic products, as well as the manufacture of other petroleum/synthesised products is also included. There are comprehensive profiles of 27 companies including KenolKobil, which has accepted a takeover offer by Rubis and will delist from the Nairobi Stock Exchange and Vivo Energy, which took over Engen Kenya.

    Introduction

    This report focuses on the manufacture of petroleum products from crude oil and natural gas in Kenya, and the wholesale and retail trade of these products. Information on the manufacture of lubricating oils and greases, primarily from other organic products, as well as the manufacture of other petroleum/synthesised products is also included. The sector is dominated by foreign-owned companies, holding a combined market share of just over 40%. Kenya is a net importer of petroleum products. Exports of petroleum fuels decreased by 1.3% from 2016 to 2017, while imports increased by 1.6% over the same period. Foreign investors are developing the country’s oilfields for crude oil production and exports by 2021 pending their final investment decision.

    Strengths

    • Government initiatives to increase LPG usage.
    • Major international players have a presence in the marketing of all petroleum products.
    • Stable macroeconomic indicators support economic growth.

    Weaknesses

    • The selling of adulterated fuel is a cause for reduced exports to neighbouring countries and unfair market competition.
    • The strong presence of international oil majors inhibits competition.
    • Weak regulatory environment leads to gaps in implementation of policies.

    Opportunities

    • Increasing demand for petroleum products from different economic sectors.
    • Renewable energy demands are opening doors for production of biofuels and clean fuels like LPG.
    • The discovery and drilling of crude oil presents major opportunities for local processing of petroleum products.

    Threats

    • Fears that land use for cultivating biofuel crops could lead to food insecurity.
    • Terrorist attacks could deter investors.
    • US sanctions against Iran hold a threat for Kenya’s security of supply as Kenya had to stop importing fuel from Iran.

    Outlook

    Government’s efforts to consolidate legislation for the sector would give industry participants the opportunity to become more competitive and potentially raise profit margins, which would contribute to economic growth. If government’s Vision 2030 is realised, analysts project that consumption of petroleum products will grow from the current 5.2 million metric tons to 12 million metric tons by 2030. Commentators see a stable macroeconomic environment supported by improved political stability creating an environment conducive to growth for the petroleum sector.

    Read More..
    The Petroleum Industry in Kenya
    The Petroleum Industry in Kenya 2019

    Full Report

    R 1 900.00(ZAR) estimated $104.52 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.16 (USD)*

    Buy Now +

    Historical Reports

    The Petroleum Industry in Kenya 2021-06-30

    R 1 900.00(ZAR) estimated $104.52 (USD)*

    View Report Add to Cart

    The Petroleum Industry in Kenya 2017-07-17

    R 1 900.00(ZAR) estimated $104.52 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. COUNTRY INFORMATION 1
    3. DESCRIPTION OF THE INDUSTRY 2
    3.1. Geographic Position 6
    3.2. Industry Value Chain 7
    4. SIZE OF THE INDUSTRY 9
    5. STATE OF THE INDUSTRY 12
    5.1. Local 12
    5.1.1. Corporate Actions 16
    5.2. Regulations 16
    5.2.1. Enterprise Development and Social Economic Development 19
    5.3. Continental 20
    5.4. International 24
    6. INFLUENCING FACTORS 25
    6.1. Economic Environment 25
    6.2. Government Initiatives 26
    6.3. Energy Demand 27
    6.4. Corruption 28
    6.5. Environment, Health and Safety 29
    6.6. Information Technology, Research and Development (R&D) and Innovation 31
    6.7. Labour 33
    7. COMPETITION 33
    7.1. Barriers to Entry 34
    8. SWOT ANALYSIS 35
    9. OUTLOOK 36
    10. INDUSTRY ASSOCIATIONS 36
    11. REFERENCES 37
    11.1. Publications 37
    11.2. Websites 37
    APPENDIX 1 39
    Summary of Notable Players 39
    COMPANY PROFILES 41
    AFRICA FUELS & LUBRICANTS LTD 41
    CANON CHEMICALS LTD 43
    COLT PETROLEUM LTD 45
    DALBIT PETROLEUM LTD 46
    DESBRO KENYA LTD 48
    ECO FUELS KENYA LTD 50
    GALANA OIL KENYA LTD 51
    GAPCO KENYA LTD 53
    GULF ENERGY LTD 55
    HASS PETROLEUM (KENYA) LTD 57
    KENOLKOBIL PLC 59
    KENYA PETROLEUM REFINERIES LTD 62
    LUBESOL KENYA LTD 64
    MIDLAND ENERGY LTD 65
    MOGAS KENYA LTD 66
    NATIONAL OIL COMPANY OF KENYA LTD 67
    OLA ENERGY KENYA LTD 70
    ONE PETROLEUM LTD 72
    ORYX ENERGIES KENYA LTD 74
    PETROKENYA OIL COMPANY LTD 76
    PREMIUM ENERGY KENYA LTD 78
    SEPYANA OIL EAST AFRICA LTD 79
    STABEX INTERNATIONAL LTD 81
    THIKA WAX WORKS LTD 83
    TOSHA PETROLEUM LTD 84
    TOTAL KENYA PLC 85
    VIVO ENERGY KENYA LTD 89

    Report Coverage

    The report on the Kenyan Petroleum Industry focuses on the manufacture and wholesale trade of petroleum products from crude oil and natural gas as well as the manufacture of lubricating oils and greases, primarily from other organic products. Profiles for 25 companies are provided, including oil importing and marketing companies such as international majors, Shell and Engen, as well as small enterprise Eco Fuels Kenya Ltd which produces 25,000 litres of biofuel per annum. Also profiled is Total Kenya which in 2017 received approval from the Competition Authority of Kenya to acquire the entire stake of Gulf African Petroleum Corporation (GAPCO), majority-owned by Indian billionaire Mukesh Ambani through Reliance Industries. The transaction is estimated to be worth US$400m and means that Total’s share of the market could increase to as much as 38%, up from its current 20%.

    Introduction

    This report focuses on the manufacture and wholesale trade of petroleum products from crude oil and natural gas in Kenya. The manufacture of lubricating oils and greases, primarily from other organic products, as well as the manufacture of other petroleum/synthesised products is included. The sector contributed an estimated 2.8% to GDP in 2016 with net domestic sales of petroleum products increasing by 6.5% to 5,044.2 thousand tonnes. Sales of petroleum products in the rail transport sector saw the biggest increase of 16.5%, driven by the construction of the Standard Gauge Railway line that will be commissioned at the end of 2017. With Kenyans headed for the polls on 8 August 2017, a mood of uncertainty is setting in across the country. The economy’s pace has slowed, as investors cautiously await the outcome of a general election that is widely expected to be closely contested.

    Strengths

    • Government support for LPG usage.
    • Major international players have a presence in the production of all petroleum products.

    Weaknesses

    • Cross-border corruption impacts negatively on local business.
    • The perception that international oil majors operating in Kenya are fixing the prices of oil and petroleum products.
    • The strong presence of international oil majors inhibits competition.
    • Weak regulatory environment leads to gaps in implementation of policies.

    Opportunities

    • Increasing demand for petroleum products from different economic sectors.
    • Renewable energy demands are opening doors for production of biofuels and clean fuels like LPG.
    • The discovery and drilling of crude oil presents major opportunities for local processing of petroleum products.

    Threats

    • Fears that land use for cultivating biofuel crops could lead to food insecurity.
    • Increasing number of terrorist attacks that will further deter investors.
    • Increasing pressure on the economy which could result in an increase in inflation and a weakening currency.
    • Upcoming elections might lead to unrest.

    Outlook

    Industry commentators believe that the petroleum products sector has a chance to flourish and become more competitive if government creates an environment that is supported by clear regulations and policies. The development of the country’s crude oil industry, the construction of associated infrastructure and the production of petroleum products could all contribute to the country achieving an economic growth rate of 10%. If Government’s Vision 2030 is realised, analysts project that consumption of petroleum products will grow from the current 4.5 million metric tonnes to 12 million metric tonnes by 2030.

    Read More..
    The Petroleum Industry in Kenya
    The Petroleum Industry in Kenya 2017

    Full Report

    R 1 900.00(ZAR) estimated $104.52 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.16 (USD)*

    Buy Now +

    Historical Reports

    The Petroleum Industry in Kenya 2021-06-30

    R 1 900.00(ZAR) estimated $104.52 (USD)*

    View Report Add to Cart

    The Petroleum Industry in Kenya 2019-03-25

    R 1 900.00(ZAR) estimated $104.52 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 11
    4.1. Local 11
    4.1.1. Corporate Actions 14
    4.1.2. Regulations 15
    4.1.3. Enterprise Development and Social Economic Development 17
    4.2. Continental 18
    4.3. International 20
    5. INFLUENCING FACTORS 20
    5.1. Economic Environment 20
    5.2. Socio-Political Environment and Terrorism 21
    5.3. Government Infrastructure Programme Spend 22
    5.4. Information Technology, Research and Development (R&D) and Innovation 23
    5.5. Labour 23
    5.6. Corruption 25
    5.7. Environment, Health and Safety 25
    6. COMPETITION 27
    6.1. Barriers to Entry 27
    7. SWOT ANALYSIS 28
    8. OUTLOOK 28
    9. INDUSTRY ASSOCIATIONS 29
    10. REFERENCES 29
    10.1. Publications 29
    10.2. Websites 30
    APPENDIX 1 31
    KPC DEPOTS IN KENYA 31
    COMPANY PROFILES 32
    AFRICA FUELS & LUBRICANTS LTD 32
    CANON CHEMICALS LTD 34
    DALBIT PETROLEUM LTD 36
    DESBRO KENYA LTD 38
    ECO FUELS KENYA LTD 40
    ENGEN KENYA LTD 41
    GALANA OIL KENYA LTD 42
    GAPCO KENYA LTD 43
    HASS PETROLEUM (KENYA) LTD 45
    KENOLKOBIL LTD 47
    KENYA PETROLEUM REFINERIES LTD 50
    LIBYA OIL KENYA LTD 52
    LUBESOL KENYA LTD 54
    MOGAS KENYA LTD 55
    NATIONAL OIL COMPANY OF KENYA LTD 56
    ONE PETROLEUM LTD 59
    ORYX ENERGIES KENYA LTD 60
    PETROKENYA OIL COMPANY LTD 61
    SEPYANA OIL EAST AFRICA LTD 62
    STABEX INTERNATIONAL LTD 63
    THIKA WAX WORKS LTD 64
    TOSHA PETROLEUM LTD 65
    TOTAL KENYA LTD 66
    VIVO ENERGY KENYA LTD 70

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