Libya Oil Ethiopia, a subsidiary company of Libya Oil Holdings, is planning to expand its business operations in Ethiopia
The planned additional investment that the company wants to make is estimated at about US$7.2mn. Zekarias Wolika, sales and marketing manager of Libya Oil Ethiopia, told journalists that the company’s management had decided to make additional investments and expand its business in Ethiopia after making an assessment of Ethiopia’s economic growth.
According to Zekarias, the management decided to build motor oil and lubricants blending facility in Ethiopia at a cost of US$5.94mn. The company also plans to establish an LPG distribution wing and to expand its bitumen supply business.
UAE-headquartered Libya Oil entered the Ethiopian fuel distribution market in November 2008 after acquiring Shell Ethiopia Limited. The company has 143 fuel stations across the country and is opening nine new stations every year, said Zekarias. “We plan to have 185 fuel stations in Ethiopia by 2020 and we want to increase our market share to 30 per cent from the existing 24 per cent.”
The company is also working aggressively on its aviation fuel supply business. The company claims to own 42 per cent of the market share. Zekarias said that Libya Oil supplies jet fuel to 30 international and local airlines including Ethiopian Airlines, which is its major customer.
Libya Oil Ethiopia has an annual turnover of about US$623mn.
