The National Oil Corporation of Kenya – Nock
The National Oil Corporation of Kenya (Nock) mandate is to participate in all aspects of the petroleum industry with view to maintaining market stability.
The National Oil Corporation of Kenya – Nock has unveiled a strategic master plan that seeks to position Kenya as an energy hub in the region.
National Oil currently has 78 service stations spread across the country. These outlets and other oil marketers and independent operators are served mainly from The National Oil Corporation of Kenya – Nock Nairobi National Terminal (NNT), whose annual capacity is 250,000 cubic metres. It serves both the corporation’s needs and hosts 10 other companies.
In addition to supplying fuel to Nairobi and Mt Kenya regions, NNT serves other independent marketers on a hospitality arrangement, making this business a leading revenue stream for The National Oil Corporation of Kenya – Nock.
Plans are underway to expand the facility by building additional storage tanks to keep up with the expanding The National Oil Corporation of Kenya – Nock retail network share in the two regions.
The National Oil Corporation of Kenya – Nock is also working on setting up a high capacity liquefied petroleum gas (LPG) filling plant within its expansive terminal yard.
The national spread of Nock stations is as follows: Nairobi 16, Eldoret area 15, Mt Kenya area 13, Kisumu area 13, Nakuru area 12 and Mombasa area 9. National Oil has also entered into market segments which include LPG, and fuel oil.
Currently, The National Oil Corporation of Kenya – Nock share of the domestic market is approximately 9.3 per cent. With the firm currently pursuing an aggressive, low-cost pricing strategy in line with its defensive pricing mandate and expanding its national footprint, this slice of the cake is poised to grow.
The National Oil Corporation of Kenya – Nock plans to expand its retail network to 165 stations and gain a 15 per cent market share by 2013. As part of its vision to stabilize the Kenyan petroleum market in the long run, Nock has come up with a National Infrastructure Master Plan that focuses on supporting petroleum infrastructure development.
The plan aims at addressing the petroleum infrastructure constraints facing the country. It will also position Kenya as a global centre for international petroleum trading.
Key projects under this plan include developing an offshore jetty and associated storage.
The National Oil Corporation of Kenya – Nock recognises that the current petroleum infrastructure is inadequate and exposes the country to supply shocks. The oil storage facilities at Kipevu and Shimanzi have limited capacity while the shallow port of Mombasa means large oil-carrying ships are unable to dock and off-load sufficient volumes of fuel.
The National Oil Corporation of Kenya – Nock is proposing to build a single buoy mooring (off shore jetty) that will allow the docking and unloading of very large crude oil carriers quickly and more efficiently than is possible currently.
Currently, only vessels with a maximum dead weight tormage (DWT) – the weight a ship can carry without riding dangerously low in the water – of 80,000DWT can berth at Kipevu. Ongoing dredging will see this increase to l20,000DWT.
The National Oil Corporation of Kenya – Nock projects that successful implementation of the off shore jetty projects will allow berthing of ships with up to 280,000DWT. The project envisages an associated oil store age terminal of up to 300,000 cubic metres. The Kipevu Oil Storage Facility has a capacity of 240,000 cubic metres.
Feasibility studies were completed in January, 2012. The project is estimated to cost $80-100 billion and is expected to be a public – private partnership venture.
A tentative timetable outlining the phases of implementation projects completion by 2013. The National Oil Corporation of Kenya – Nock will seek to attract private partners experienced in terminal management and international petroleum trading as a way of enhancing competitiveness.
The National Oil Corporation of Kenya – Nock intends to build up 90-day strategic reserves by putting up nationwide storage facilities and pipelines linked to the current distribution infrastructure.
Based on the 2010 consumption levels, the company estimates the sufficient 90-day levels to be: Diesel 528,000 cubic metres, jet fuel 357,000cbm, Petrol 211,l30cbm and LPG 2l,260cbm.
The strategic petroleum reserves are to be located in Mombasa, Mtito Andei, Konza, Nanyuki, Garissa, Wajir, Marsabit, Ma_ndera, Nakuru, Eldoret and Kisumu.
In selecting the locations, the current petroleum infrastructure in the country has been considered. The location of future Vision 2030 special economic zones such as the envisaged techno-city at Konza, discovery of oil in Kenya and Uganda, and a likely pipeline from South Sudan have also been factored in.
The National Oil Corporation of Kenya – Nock is setting up the backbone services to support an active oil and gas exploration programme in Kenya and the region. To this end, the corporation is establishing a modern data centre that will allow remote access to oil and gas data from anywhere in the world.
The National Oil Corporation of Kenya – Nock has also embarked on the modernisation of the national geo-chemical laboratory to provide extensive hydrocarbon analysis services for the East African region.
The National Oil Corporation of Kenya – Nock is Working to position the country as a hub for hydrocarbon services in the region, including through the construction of a geochemical analysis laboratory as well as the implementation of a digitised National Data Centre to enhance exploration data management.
The National Oil Corporation of Kenya – Nock is the custodian of all the exploration data acquired in the country since the 1950s. The data includes seismic data, aeromagnetic and gravity data, core samples and drill cuttings, petroleum exploration reports and hydrocarbon potential packages.
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