KenolKobil Limited is pleased to announce the acquisition of a modern Depot Complex in Dar es Salaam, Tanzania from World Oil Limited on a 25-year long term lease arrangement.

This new asset consists of a Fuels Depot with a storage capacity of 33,000 m³, a 12 Loading Arm Gantry, a large operations office block and two (2) large dry cargo warehouses ideal for storage of large quantities of LPG cylinders and lubricants.

Effective July 1, 2011 and for the full term of the lease, the Depot will be under the full management and control of KenolKobil. KenolKobil will use its systems and expertise developed over the years to ensure that the depot becomes the most efficient and customer friendly depot facility in Tanzania similar to its other 19 Terminals in Africa.

The Depot Complex, which sits on a six-acre prime land, also includes a well-developed fire fighting system and a modern three-storey office block with adequate space for use as the Kobil Tanzania Head Office. In addition, the new depot facility has an expansive well-paved yard suitable for use as storage space for products in drums and other bulk and packaged products including drummed Bitumen.

The new depot is strategically located next to Tanzania Italy Petroleum Refineries (TIPER) Storage facility, and is connected by dedicated pipelines to Kurasini Oil Jetty (KOJ).

The new facility is therefore a major boost to Kobil Tanzania’s operations, which have, since its inception in 2001, depended on hospitality arrangements to service its growing local and external market product demands. 

Further to enabling Kobil Tanzania meet its growing domestic demand, the new high capacity depot will provide adequate product storage for KenolKobil Group Export Markets, including exports to Malawi and Eastern Democratic Republic Congo (Lubumbashi Region).

This new high capacity depot facility comes at an opportune time for the KenolKobil Group which is rapidly expanding its business in the Great Lakes region.

The new depot will provide the much needed bulk cargo storage for existing and new markets and will enhance KenolKobil Group trading activities along the Indian Ocean major Ports in Africa. This will provide better utilization of KenolKobil’s existing term contracts with upstream producers.

The increased storage capacity in Tanzania created by this venture will help enhance efficiency in product delivery for KenolKobil Group subsidiaries in Uganda, Rwanda, Burundi and Zambia.

Kobil Tanzania has grown organically over the last 10 years to become one of the leading brands in the Tanzanian Oil Industry, with a total of 27 Service Stations. Currently, the Company is rapidly expanding its Service Station network to key regional towns including Arusha, Morogoro, Lindi, Mtwara, and Tanga, with the aim of covering the entire country.

The acquisition follows recent acquisitions of similar high value assets in Uganda and Burundi, as well establishment of new businesses in Zimbabwe and Mozambique.

Jacob I.  Segman

Chairman & Group Managing Director