NOCK raises oil storage capacity in Kenya

The National Oil Corporation of Kenya's (NOCK) storage capacity has risen by 26,000 cm after completion of the setting up of two tanks at its Nairobi depot. Managing director Mwendia Nyaga said Sh 100 mm was spent on the project adding that the newly completed tanks, each with a capacity of 13,000 cm, will enable the State-owned firm to meet demand.
"The aim is to fully utilise the capacity of Nairobi depot to serve the city and its environs, which comprise about 60 % of the domestic demand for oil products in Kenya," he said.

The depot built at a total cost of Sh 350 mm and commissioned in 2002 with a daily capacity of over 1.2 mm litres, has enabled new smaller companies to penetrate the greater Nairobi oil market.
NOCK earned Sh 200 mm as net profit and a turnover of Sh 8 bn during the financial year ended June 30, 2008 after being turned around from loss making entity at the beginning of this decade. Mr Nyaga said the firm has focused on sales in a competitive market to realise better returns on investment which has in turn enabled new entrants in fuel marketing to increase their revenue bases.

Market share
He said NOCK last year started retailing liquefied petroleum gas drawing good response adding that plans are underway to expand to fuel oil, bitumen, aviation fuel and branding of its own lubricants. He said the firm's market share is set to increase after the June 2008 acquisition of 33 retail outlets from Somken and a further 10 from BP bringing the total service stations to 67.
Mr Nyaga said the 33 from Somken are being rebranded and integrated into NOCK's retail network with the corporation investing heavily in new equipment to increase efficiency.