Oryx Energies sells Tanzania gas business to ASAS in strategic shift

The agreement, announced on October 21, will see ASAS take over the Tanzanian gas operations after securing the necessary regulatory approvals.

Oryx Energies has agreed to sell its gas business in Tanzania to ASAS Energies as the company reviews its African investments and seeks to strengthen its focus on energy infrastructure and trading activities.

The financial value of the deal was not disclosed, and the companies have not announced a timeline for its completion.

Oryx said the transaction was part of an ongoing review of its downstream assets across Africa as it seeks to concentrate capital and resources on areas aligned with its long-term strategy.

The company expressed confidence in ASAS’s ability to sustain the business, citing the buyer’s established presence in Tanzania and its capacity to build on the foundation laid by Oryx.

ASAS is expected to take over the operations once the transaction is finalised, while Oryx will continue running the business under existing arrangements until completion.

The company said it would maintain services to customers and partners during the transition, with priority given to safe and reliable deliveries.

The transaction comes amid continued competition in East Africa’s energy sector, where companies are reassessing their portfolios as demand for energy, distribution networks and regional trade remain important to economic growth.

Despite the planned exit from Tanzania’s gas business, Oryx maintains a presence 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.

Its operations place it among players serving Kenya’s competitive downstream energy market, which also includes Vivo Energy Kenya, Rubis Energy Kenya and TotalEnergies Marketing Kenya.

The Tanzanian transaction does not, in itself, indicate a change in Oryx’s Kenyan operations. However, the wider portfolio review illustrates how energy companies are reassessing investments and allocating resources across African markets.

Developments in Tanzania remain relevant to Kenya because the two countries operate within an interconnected regional energy landscape shaped by petroleum distribution, infrastructure development and cross-border trade.

Oryx said Africa would remain central to its long-term ambitions even as it seeks to strengthen its infrastructure and trading businesses.

The completion of the sale will depend on regulatory approvals and the fulfilment of the agreed conditions, with further details on the transaction yet to be announced.