Oryx exits Tanzania gas in deal with ASAS

Oryx Energies has agreed to sell its gas business in Tanzania to ASAS Energies, marking another strategic shift in East Africa’s competitive energy sector as companies reposition their investments across the region.

The agreement will see ASAS Energies take over the Tanzanian gas operations once the transaction receives the necessary regulatory approvals and meets other customary conditions.

Oryx said the decision forms part of an ongoing review of its downstream assets across Africa as the group seeks to concentrate its capital and resources on developing energy infrastructure and strengthening its trading activities.

The company said ASAS, which has an established presence in Tanzania, is well positioned to build on the foundation created by Oryx and support the continued development of the country’s gas sector.

The transaction comes at a time when energy supply, distribution infrastructure and regional trade remain central to the economic interests of Kenya and its neighbours.

Oryx maintains operations in Kenya, where it supplies petroleum products, lubricants and liquefied petroleum gas (LPG), alongside fuel distribution and retail services. The company has operated in the Kenyan market since 2004.

Kenya’s energy market also includes established players such as Vivo Energy Kenya, Rubis Energy Kenya and TotalEnergies Marketing Kenya, competing across various segments of fuel supply, distribution, retail and related services.

While the Tanzanian gas transaction does not, by itself, signal a change in Oryx’s Kenyan operations, its wider portfolio review highlights how multinational energy companies are reassessing where to deploy capital across African markets.

For Kenya, developments in neighbouring Tanzania are important because energy infrastructure, petroleum distribution and cross-border trade are interconnected across East Africa.

Oryx said it would continue operating its Tanzanian gas business as usual until the sale is completed, maintaining services to customers and partners and prioritising safe, reliable delivery.