Kenya’s National Oil Corporation Seals Major Partnership with Africa’s Largest Energy Giant

Kenya’s National Oil Corporation Seals Major Partnership with Africa’s Largest Energy Giant

Kenya’s National Oil Corporation (NOC) has signed a landmark Memorandum of Understanding with Algeria’s Sonatrach SPA, Africa’s largest energy company, in a strategic move that will transform Kenya’s position in the regional oil and gas market and attract significant fresh investment into the sector.

The agreement, inked at Sonatrach’s headquarters in Algiers on September 8, 2025, opens comprehensive opportunities across the entire petroleum value chain. The collaboration will span upstream exploration and production, petroleum product supply, liquefied petroleum gas (LPG) imports, storage and distribution infrastructure development, and strategic reserve creation.

This partnership arrives at a crucial time as NOC undergoes restructuring to become a holding company with three subsidiaries dedicated to exploration, trading, and infrastructure. The timing coincides with Kenya’s plans to license new exploration blocks and introduce an Open Tender System (OTS) for LPG imports, designed to stabilize supply and reduce domestic market price volatility.

“This collaboration comes at a pivotal moment as we are geared towards expanding Kenya’s oil and gas capacity,” declared NOC Kenya CEO Leparan ole Morintat during the signing ceremony. “Working with Sonatrach will give NOC access to world-class petroleum expertise, infrastructure, and trading experience to help transform Kenya’s energy sector.”

Sonatrach, founded in 1963, stands as the world’s seventh-largest oil and gas company and Africa’s first oil “major.” With 154 subsidiaries, it dominates Algeria’s economy, contributing over 90 percent of government export revenue. The partnership could help NOC secure reliable, competitively priced fuel imports while reducing Kenya’s exposure to global price shocks.

Source: nation.africa