Nile Petroleum to enter Ethiopian fuel distribution market

14 September 2006

By Groum Abate - Capital

Established in 1954 as a subsidiary of TOTAL, Nile Petroleum is getting ready to enter the oil distribution market in Ethiopia by January 2007.

Nile Petroleum, which is totally owned by the Sudanese government, plans to become the third operator after National Oil Company (NOC) and Yetebaberut Biherawi Petroleum (YBP) following the government's revised proclamation that allows other distributors than Shell, Total, and the previous Mobil and Agip companies.

The company is involved in the field of marketing and distribution of petroleum products with an average market share of 50% in Sudan . It is now constructing a depot and fuel station around the Sululta area, which is expected to be completed by the end of 2006.

The plan for the depot and station would be delayed by a few weeks due to the heavy rains.

Nile Petroleum which became wholly government owned in 1993, holds 40% share of the Petrotrans company, established in 1983, and works in transportation of petroleum products in and out of the country.

Nile Petroleum is also the major supplier of butane gas for Ethiopia , where Ghion Gas is the major customer.

The oil distributing firm, which would be the fifth one, is expected to expand its stations throughout the country in the next couple of years.

Currently, YBP has the smallest market share in the sector, which is dominated by international oil giant Shell.

Shell has 220 stations across the country and 45% of market share. TOTAL takes second place with 195 stations and 39% of the market followed by NOC with 55 stations and 11.3% of the market. YBP has only 18 stations and 3.7% of the market share.

One of the country's largest operators in petroleum distribution and marketing is Shell Ethiopia, which has been in operation for around 50 years. It acquired the local network of regional player Agip – alongside its operations in Uganda , Kenya , Eritrea and the Côte d'Ivoire – to make it the largest oil retailer in the whole of Africa . NOC was established by Sheik Mohammed Al-Amoudi, Tadesse Tilahun and Abinet Gebre Meskel with an initial capital of 100 million birr. Established in April 2004 as the first local, non-multinational oil company, NOC started its operation with the inauguration of eleven service stations in Addis Ababa and its environs in November 2004. Established in 2002 with an initial capital of 50 million, Yetebaberut has 23 shareholders, with many of them owning gas stations or fuel trucks.