On 21 November 2018, Lukoil announced a partnership with local firm Fairdeal Energy that gives the Kenyan company distribution rights for its products across Eastern and Central Africa.
The agreement marks the Russian energy company’s push into Africa, with Kenya positioned as the entry point for its petroleum and oil products. Fairdeal Energy chief executive Hussein Mukarram said the company would operate two service stations in Kenya, in Nairobi and Mombasa.
“This is the beginning of our entrance in Africa and Kenya serves as key entry for both our petroleum and oil products. We shall be having two service stations in Kenya namely Nairobi and Mombasa,” said Hussein Mukarram in the statement announcing the deal.
Lukoil described itself as one of the world’s largest vertically integrated privately owned energy companies and said it is the market-leading lubricants brand in Russia and Europe. Victor Zhuravskiy, Lukoil’s chief executive for the Middle East and Africa region, said the industry’s future would be shaped by new technologies and investment in product development.
“As the 21st-century consumers, governments and industries move towards advanced technology to achieve increased efficiency and reduced emissions, the scope and role of oil manufacturers changes and calls for huge investments in new product developments,” he said.
He added: “Lukoil has kept itself ahead of the curve and developed an impressive range of synthetic products. We are pleased to launch our superior trademark range of motor lubricants in this demanding and competitive market.”
Continental footprint ¶
Lukoil said it manufactures more than 40 per cent of all lubricants in Russia. In 2016, the company produced and marketed 1.2 million tonnes of lubricants.
The firm said it sells more than 700 types of oils and greases for use in the automotive sector, heavy-duty transport, construction and mining, shipping, power generation and general engineering. It also said it has a presence in 125 countries.
Fairdeal Group, meanwhile, said it has a diversified business portfolio spanning several sectors of the economy.
