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by Sydney
Political Cartoonist and Commentator


Sydney

Oct 30, 2020

National Oil Sh108 billion stake sale faces longer delay


The Kenyanpost news

Kenya's plans to raise $1 billion (Sh108 billion) through the sale of a stake in the National Oil Corporation of Kenya (Nock) face longer delay, with the government remaining non-committal on the expected conclusion date of the deal whose proceeds are meant to acquire a stake in the Turkana oil blocks.

In November 2017, the Energy ministry disclosed that it was seeking to list its oil firm on the Nairobi and London stock exchanges by early 2019 through an initial public offering (IPO). Noc had already advertised for a consultant to guide the deal.

President Uhuru Kenyatta also said in 2018 that the company would dual list on both bourses by 2019.

This week, the Petroleum ministry Petroleum Principal Secretary Andrew Kamau said "the process is ongoing," without divulging further details.

The dual-listing would be facilitated by a May 2017 memorandum of understanding between LSE Group and NSE, enabling cross-listing of Kenyan shares and bonds in London.

The contract signed for the concession of the two blocks in the Lokichar Basin—the 4,719 square kilometre 13T and 6,172 square km 10BB—contained a clause allowing the government to exercise a back-in right, which essentially means buying back a percentage of the ownership before production kicks in.

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