3 State-owned Arab firms bag Kenya oil tenders
MV Front Cheetah docks at Mombasa Port with more than 100 million litres of super petrol on April 7, 2022. Three Arab firms have won the tender to supply Kenya with petrol, diesel and kerosene for 9 months beginning April.
Abu Dhabi National Oil Company (ADNOC), Saudi Aramco and Emirates National Oil Company (ENOC) have won the tender to supply Kenya with petrol, diesel, and kerosene for 270 days beginning in April.
This is through the government-to-government deal for fuel supply that Kenya is aiming to use to reduce its mounting forex shortage woes.
Kenya floated the tender two weeks ago inviting State-owned oil firms from across the globe to supply the fuel on a six-month credit period.
The Ministry of Energy and Petroleum on Monday said the tender attracted seven bids with the three Middle East firms presenting the most attractive offers.
The firms will supply the fuel to local nominee oil companies which will in turn supply the fuel to other local oil firms.
The first cargo of fuel from the arrangement will arrive next month and will be used in the April-May pricing cycle.
"The proposed transaction is expected to alleviate the demand for US dollars driven by petroleum imports by extending the time required to source for USD liquidity from the current five (5) days to one hundred and eighty (180) days," said Energy Cabinet Secretary Davis Chirchir.
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