Oman Oil has signed a deal with Hass Petroleum for distribution of its lubricants in the Kenyan and Eastern Africa market.
The partnership will see Hass Petroleum distribute lubricants formulated in Oman.
Under the deal whose financial aspect remains undisclosed, the Oman-based oil manufacturer will fund the distribution and marketing of its products through Hass Petroleum.
Omani Trading International (OTI) acquired a 40 per cent stake in Hass Petroleum about a year ago in a transaction that also included provision of technical assistance to the Kenyan firm.
Oman Oil, which is wholly owned by the Oman government will use Kenya’s strategic location to further its share in Uganda, Tanzania, and the Democratic Republic of Congo banking on the Port of Mombasa.
“A key component in our growth strategy moving forward is focused on identifying new business leads and expanding the geographical reach of our products beyond Oman’s borders. We are confident that this partnership with Hass Petroleum will not only reinforce the trade relations between the Sultanate and Kenya but also help establish new streams of collaboration between the two nations and other neighboring countries,” Oman Oil CEO David Kalife.
Hass Petroleum CEO Issa Sheikh Mohammed said the partnership will boost its efforts of widening its reach in the local lubes market which is valued at about $180 million.
Oman Oil currently sells its lubricants to the Middle East, North Africa, Ethiopia, Bangladesh, Yemen and Bahrain markets.