Galana entry set to fuel lubricants market battle

Competition in the marketing of lubricants in Kenya is set to intensify with the entry of independent operator, Galana Oil Kenya Ltd. The pace was set in December 2009, when another indigenous firm, Hass Petroleum Group, joined the fuel marketing and distribution field which was until then dominated by major oil firms such as Shell, Total, Oilibya and KenolKobil. According to Galana Oil, the move is part of a strategy to diversify, widen the product offering and grow revenue streams through a partnership with Emirates National Oil Corp. (ENOC). ENOC is a Dubai government energy group with interests in oil and gas, including the Jebel Ali refinery, with operations in Dubai and the United Arabs Emirates (UAE). Galana’s entry follows a recent investment of Sh500 million (US$136.17 million) to set up retail fuel dispensing stations under the Delta brand name in Nairobi and other major towns. (June 8, 2010)