Oil marketer Hass Petroleum Group has partnered with Muscat-based Oman Trading International to market its petroleum products in East Africa.
Oman Trading International (OTI) has acquired 40 per cent stake in Hass Petroleum Group.
“Today marks a significant growth strategy that will see our partners market and sell our oil lubricants across its market reach,” said Oman Oil Marketing Company Chief Executive David Kalife. Oman Oil Marketing Company is a subsidiary of OTI.
“Moving forward, we are focused on identifying new business leads and expanding the geographical reach of our products beyond Oman’s borders.”
Mr Kalife said he was confident the partnership with Hass Petroleum would not only reinforce the trade relations between the sultanate and Kenya, but also help establish new streams of collaboration between the two nations and her neighbours.
Hass Petroleum also plans to expand its distribution network in the region, including Uganda, Tanzania and the Democratic Republic of Congo.
“When you look at the Kenyan lubricants market, you realise that there is a lot potential. Going by recent numbers, the market is valued at about Sh18 billion ($180 million. Majority of this comes from the transport and industrial sectors,” Hass Petroleum Group CEO Issa Mohamed.
Mr Mohamed said part of the agreement was that OTI would provide technical expertise and financial backing to Hass Petroleum as it seeks to penetrate key African markets.
He observed that the partnership would ensure the firm stayed competitive in the region.
Mohamed said the firm would expand into southern African, with Zambia and Mozambique on its new market plan.
“We plan to start off with tenders which target the aviation and industrial sector. Then, we shall be rolling out service stations by the end of this year in these two markets,” noted Mohamed.
Oman Oil Marketing Company produces lubricants sold in the Middle East, North Africa and Indian sub-continent including Bahrain, Yemen, Ethiopia and Bangladesh.