Business / Markets
Wednesday, 24 Aug 2016 15:01 EATnewsdesk@kenyafreepress.com
Two state-owned energy companies have entered a partnership that will utilize their considerable capacities in oil and gas drilling for business opportunities in the Horn of Africa. The Geothermal Development Company (GDC) and National Oil Corporation of Kenya will offer joint oil and gas drilling services in Kenya and the region.
The partnership is a first of its kind in the country. GDC is diversifying its operations to leverage on the state-of-the-art drilling rigs it has acquired over the years. "As GDC, we are excited to be entering into this agreement with National Oil. This strategic partnership presents a unique opportunity for GDC’s ongoing diversification efforts to optimize its drilling assets in revenue generation," said Eng. Ole Nchoe, GDC’s Managing Director and CEO.
On her part, National Oil’s acting chief executive officer, Ms MaryJane Mwangi, noted that Kenya’s emerging petroleum sector provides vast opportunities in oil and gas drilling.
“The future of oil and gas exploration and production in our country and the region is very promising. Recent oil and gas discoveries in Kenya and Uganda have made the East African region attractive for companies that offer drilling services. This is the opportunity that the National Oil-GDC partnership seeks to exploit,” said Ms Mwangi.
In the memorandum of understanding, GDC will offer National Oil drilling equipment as well as related specialized drilling services. Specifically, GDC will provide National Oil with one deep-drilling rig and personnel. Other aspects of the agreement include capacity building, provision of support services, sharing of equipment and facilities, joint tendering for consultancy and technical services, as well as information and knowledge exchange.
The partnership has been entered into in line with the Kenya government’s approach of deriving utmost value from the emerging oil and gas subsector and will be administered by a committee comprising of representatives from the two state corporations.
National Oil Corporation of Kenya is a fully integrated oil and gas company involved in the upstream, midstream and downstream petroleum business in Kenya and is actively involved in the exploration of oil and gas.
On the other hand, the Geothermal Development Company is engaged in the development and exploitation of geothermal resources and the promotion of alternative uses of geothermal resources in the country.