A UAE-based oil firm has acquired and renamed Essar Petroleum East Africa Ltd to ASPAM Energy (Kenya) Ltd in a bid to boost its downstream supply chain in oil and gas sector.
"The move will improve the company's market share from the current 1.1 per cent and consolidate the firm in east Africa," said Gulf Petrochem Group Managing Director Sudhir Goyel.
The deal will enhance the group's integrated services and products for the downstream supply chain in the oil and gas sector in East Africa.
Gulf Petrochem Group secured the due approvals from the Energy Regulatory Commission (ERC), the Competition Commission and other regulatory bodies.
"With the global market for bitumen expected to reach USD 95.77 billion by 2020 according to a new study by Grand View Research, our group has recognised the potential for business growth within the African continent.
"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 Goyel.
Gulf Petrochem Group specialises in oil trading and bunkering, oil refining, grease manufacturing, oil storage terminals, bitumen manufacturing, and shipping and logistics.