The United Arab Emirates (UAE) based oil firm Gulf Petrochem Group has completed the acquisition of Essar Petroleum East Africa Ltd and changed its brand name to Aspam Energy (Kenya) Ltd.

The deal is expected to enhance the group’s integrated services and products for the downstream supply chain in the oil and gas sector in East Africa.

It is also expected to boost the firm’s market share in Kenya currently estimated at 1.1 per cent.

Gulf Petrochem Group is keen on the Kenyan market with hopes of using it as springboard for its East African operations.

“Our group has recognized 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 Sudhir Goyel, Managing director, Gulf Petrochem Group.

In a statement Wednesday, Mr Goyel said the transaction had secured the due approvals from the Energy Regulatory Commission (ERC), the Competition Authority of Kenya (CAK) and other regulatory bodies.

Aspam Energy (Kenya) will continue with the commitment to cater to customers in East Africa who were earlier serviced by Essar Petroleum East Africa Ltd in the fuel retailing segment.

Aspam Energy (Kenya) will now have license to market petroleum products through outlets earlier serviced by Essar Petroleum East Africa ltd.

It also intends to develop storage and retail infrastructures as part of its long term goals in East Africa along with the expansion of retail networks through organic and inorganic routes of growth.

Aspam Energy (Kenya) is part of Gulf Petrochem Group, which has a trading arm active in trading Fuel Oil, Gas Oil, Bitumen and Base Oil.

The firm will now naturally focus on these products in East Africa thus contributing to the growth of the East African economy.
Essar Petroleum East Africa Ltd is owned by Essar Energy Overseas Limited (99.7 per cent) and Essar Energy Holdings Limited (0.3 per cent).