Kenya government-owned National Oil Corporation has embarked on a regional expansion exercise that will see it build the requisite capacity to service increasing customer base in the east African region.

The company announced in Nairobi last week that it will partner with regional governments and other industry

players to tap into the increasing demand for petroleum products in the region and the general growing business vibrancy within the region.

"Our focus is on the large East and Central Africa market. There is an evident growing demand for petroleum products and we will engage in partnerships that will make us realize this goal," said Sumaiya Athumani, the Managing Director.

Since inception, National Oil has most concentrated on the Kenyan market. However in the recent times, the company has ventured into the region through strategic partnerships. The most recent venture is South Sudan where the company is set to launch operations.

Apart from retailing petroleum products, the company last month partnered with an Indian player to submit a bit for the construction of the lucrative oil pipeline that will link Kenya and Uganda.

Industry analysts point to the fact that the company is angling itself in the wake of lucrative oil finds in both Kenya and Uganda.

National Oil has its sights on being the leading regional supplier of bulk petroleum products, lubricants and Liquefied Petroleum Gas (LPG). It is therefore laying the ground through strategic partnerships.

The company currently has over 100 stations in Kenya alone with a number of others still under construction across the country and the region.

"We are looking at the oil industry in its totality. We want to support our downstream business through a midstream investment in a jetty. Feasibility studies for this jetty are complete," said Sumaiya.

The oil industry in Kenya and the region has witnessed a lot of investment activity with local and multinationals fighting for a share of the heavily lucrative pie. The regions oil sector could be headed for more interesting times especially when mining kicks-off.