Hope at Last as National Oil Imports cheap Fuel from Saudi

Post by : Ann Njambuya

Kenyans can now sigh a sign of relief after National Oil Corporation of Kenya held talks with Aramco. Aramco is a Saudi state owned fuel company with presence in Asia, Europe and North America.The Company is considered as the largest oil company in the world. It is also rated as the most valuable company in the world with a valuation of over 3 trillion dollars.

National oil is bargaining with the Saudi company for cheap oil. The oil will be sold at low rates than the prevailing global market rates. Kenyans have been experiencing a sharp rise in the prise of fuel which has in turn caused a sharp increase in the price of basic commodities.

Photo// National oil corporation of Kenya service station. The State owned oil marketer is expected to start importing cheap Fuel from Saudi Arabia in a bid to stabilise the fuel prices in the country.The corporation has over 60 operational service stations in the country.

The deal is expected to mature in August 2022, with a pilot period of two months. according to documents seen by https://www.iconnews.co.ke. Aramco is expected to finance the shipping and logistics of the fuel on a credit line. NOCK is in return expected to clear the debt withing 60 to 90 days.

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Financiers

The Saudi Company is also looking for financiers in Dubai to help finance the project. Kenyans will benefit greatly from this program as it is aimed at stabilising the fuel prices. In a statement to the press NOCK CEO, indicated that the MOU is already signed.

The corporation is expected to undergo a major restructuring especially in the increase of service stations. Most of its service stations have been operating at losses or under capacity. However with the new deal, the corporation is expected to acquire additional Service stations.