National oil agency in discussions with stakeholders over revamp strategy

A member of the public makes a point during a public participation exercise at NOC headquarters as Managing Director Leparan Morintat looks on. [Edward Kiplimo, Standard]

The company's core mandate is to spearhead oil and gas activities, guarantee the security of supply of petroleum products, and stabilise the prices of petroleum products.

The company's management is meeting creditors, suppliers, dealers and the general public to seek views on the planned subsidiarization of the business.

While restructuring only requires public participation, the onboarding of a strategic partner is a matter of public procurement and disposal law.

"NOC has great potential. We want to take it to the level of other national oil companies of the world which are the key cogs in the engines of their countries' development," said NOC Managing Director Leparan Morintat.

The non-equity strategic partner is expected to inject working capital to finance stocks, and capital expenditure for rebranding, renovation and expansion of the retail stations network.

It is also expected to bring capacity and technology transfer, while enhancing efficiency and controls.

Creation of subsidiaries is expected to help de-risk the business, enhance efficiency and lead to internalisation among other benefits.

Last week, the National Assembly's Energy Committee put the government to task over the status of NOC.