Kenya Pipeline Company seeks advisers for oil-refinery purchase

Kenya Pipeline Co., a state-owned entity, plans to acquire Kenya Petroleum Refinery Ltd., the only crude processor in East Africa’s largest economy.

The company, which operates a 1,221-kilometer (759-mile) pipeline network in Kenya, invited bids from transaction advisers to help with the planned acquisition, it said Thursday in a statement in the Daily Nation newspaper, without providing further details.

The refinery, a joint venture between the Kenyan government and Mumbai, India-based Essar Oil Ltd., has been closed since 2013 after it was converted to an oil-storage facility. Kenyan Treasury Secretary Henry Rotich said in April the nation would pay Essar about 500 million shillings ($4.93 million) and assume full ownership of the plant.

Kenya Pipeline said in March it plans to “ diversify into other oil and gas business ventures in various countries within the East and Central African region.”

 ~Bloomberg