VENTURES AFRICA – In a bid to diversify income streams, one of the fastest growing Security Companies in Africa, KK Security, has disclosed plans to venture into Kenya’s oil exploration business by offering specialised services to mining companies on remote sites.
The East Africa security company has signed partnership deals with international firms including Kiron Global to train its mining staff, Unity Resources for offshore security and Allterrain Services (remote accommodation and logistics) to give it a foothold in eastern Africa oil and gas market, Business Daily reported.
KK Security commercial director, Adam Miller said “We are looking at the oil and gas market as the next frontier for growth for KK Security since it is going to be huge. This will help transform the company by cutting the share of revenues from guarding services to 30 percent from the current 60 in three years.”
The security company is targeting foreign interest in petroleum blocks that has surged since British explorer Tullow Oil announced Kenya’s first oil discovery in March. The services offered include offshore security, accommodation, and logistics as well as training and leasing specialised workers on oil drilling and extraction.
Major energy companies with operations in Kenya include France’s Total, Italy’s Eni and US majors Anadarko and Apache as well as small players like Cove, Origin Oil, Pancontinental and Lion Energy.
Most of the oil blocks in Kenya are located in remote areas and KK Security is looking to offer its services including offshore security, accommodation, logistics, training, waste management and laundry as well as leasing specialised workers on oil drilling and extraction. It is also offering services in providing safety training, protection of executives and guarding exploration installations.
In offering its service drilling and extraction, the company also seeks bridge in partnership with US-based Kiron Global Strategies.
KK Security plans to offer training to engineers, technicians and artisans in the in sector and employ the experts to provide specialised services to the oil and gas exploration companies as many of the experts involved in the exploration activities are being shipped in from abroad due to lack of the necessary skilled manpower locally.
It will compete with the likes of Lonrho owned Afex, which also offers oil firms accommodation and logistic services.
On security offering, Miller affirmed that “Security accounts for about 10 per cent of offshore drilling cost and this presents a huge market for us.” He added that the firm would tap this market in partnership with Unity Resources to offer maritime security.
KK Security was established in Kenya in 1967 with operations in about seven African countries including Burundi, Tanzania, Uganda and democratic Republic of Congo (DRC).