EXPANSION
KP Mahamanou Oil & Gas Limited’s refining capacity on the U.S. Gulf Coast. This strategic move was designed to increase the company’s refining capability from 25,000 barrels per day to over 100,000 barrels per day, marking a major milestone in the company’s growth and operational capacity.
This expansion was supported by a long-term crude supply and profit stream agreement with Sonangol, the national oil company of Angola. However, the project faced challenges due to political conflicts between the U.S. government and the Angolan government, which temporarily halted progress. Despite this setback, KP Mahamanou Oil & Gas Limited continued to diversify its operations, opening new markets in regions such as Russia, Poland, China, the Republic of Benin, Venezuela, and Mexico.
The expansion initiative underscored KP Mahamanou Oil & Gas Limited’s commitment to enhancing its refining capabilities and meeting the growing demands of the energy market. By investing in infrastructure and strategic partnerships, the company solidified its position as a leader in the oil and gas industry, delivering reliable and efficient energy solutions to its clients.
During the late 1980s, KP Mahamanou Oil & Gas Limited embarked on a strategic initiative to acquire the assets of the Independent Refining Company located in Winnie, Texas, and Port Neches, Texas. This acquisition was intended to significantly expand the company’s refining capacity on the U.S. Gulf Coast, increasing its capability from 25,000 barrels per day to over 100,000 barrels per day.
To support this acquisition, KP Mahamanou Oil & Gas Limited secured a long-term crude supply and profit stream agreement with Sonangol, the national oil company of Angola. The financial arrangements included a letter of credit issued by the French American Bank in New York, which was reissued through BNP Geneva to Paribas in Lisbon, Portugal, in favor of Sonangol.
At the time, a tanker was stationed at the Port of Cabinda with all necessary port clearance codes ready to load crude oil. However, the transaction was halted due to political conflicts between the U.S. government and the Angolan government, preventing the deal from moving forward.
Despite this setback, KP Mahamanou Oil & Gas Limited continued to diversify its operations and expand its market presence. Trading activities flourished, with new markets opening in Russia, Poland, China, the Republic of Benin, Venezuela, and Mexico. This adaptability and resilience allowed the company to maintain its growth trajectory and solidify its position as a key player in the global energy market.
KP Mahamanou Oil & Gas Limited’s ability to navigate challenges and seize new opportunities reflects its commitment to innovation, strategic partnerships, and sustainable growth. The company remains dedicated to delivering reliable energy solutions while exploring new avenues for expansion and development.
