The Departmental Committee on Energy has been assured that plans are underway to revive the National Oil Corporation (NOC) by restructuring and commercializing its operations and that the Corporation will not be privatized.

This assurance was given to the Mwala MP, Hon. (Eng.) Vincent Musyoka- led Committee during a session with the NOC’s Managing Director (MD), Mr. Gideon Leparen.

Mr. Leparen outlined a detailed plan for the corporation's recovery saying the state-owned entity has been facing severe financial challenges that have rendered it nearly insolvent prompting the Government to find alternative measures to save it from collapsing.

He pointed out that the financial constraints have significantly hampered its operations, after banks suspended its credit lines restricting its ability to fulfill its mandate.

NOC in its report indicated that the financial struggles prompted the Cabinet to approve a proposal to restructure it into a holding company.

NOC’s challenges, he noted, have been exacerbated by debts owed to major banks, including the Kenya Commercial Bank (KCB) and Stanbic Bank, and accumulated pending bills. These financial woes have hindered the company's ability to maintain a stock of petroleum products, limiting its market presence.

Members expressed concerns over NOC’s lack of stock and questioned how the proposed restructuring would resolve this critical issue.

In response, Mr. Leparen revealed plans for a strategic partnership with Rubis Energy Kenya. He explained that the partnership is set on a non-equity basis and it is expected to inject Kshs.3 billion in working capital for stock financing, with an additional Kshs.3 billion earmarked for rebranding, renovating, and expanding NOC's retail network.

While the partnership offers a potential lifeline for the struggling corporation, Members voiced concerns over the possible risks with the Vice Chairperson, Hon. Lemanken Aramat (Narok East), requesting the MD to make available to the committee the agreement between NOC and Rubis for scrutiny to safeguard public interest.

Members warned of the possibility that Rubis, with its growing market dominance, could absorb NOC in the process.

While the restructuring of NOC is seen as a crucial step towards reviving the entity, lawmakers emphasized the need for caution, urging NOC to carefully analyze potential risks and consult widely before finalizing the partnership.