Engen buys Chevron Africa Fuel Network

Cape Town - South African petroleum group Engen is planning to take over Chevron’s fuel distribution interests in seven African countries south of the Sahara.

These include Mauritius and Réunion in the Indian ocean.

For the past four years it has been part of Engen’s strategy to expand its footprint in Africa.

Engen has signed purchase agreements for Chevron’s fuel marketing companies in Zambia, Malawi, Tanzania, Mauritius, Réunion, Zimbabwe and Mozambique.

No amount has been mentioned, and the various governments and regulatory authorities still have to approve the takeover.

Since 2006 Engen has taken over the fuel distribution interests of other international oil companies in Burundi, Gabon, Lesotho, Rwanda, Guinea-Bissau and the Democratic Republic of Congo.

The latest takeover will add 500m litres a year to Engen’s sales volumes, said chief executive Nizam Salleh.

Malaysian state oil company Petronas owns 80% of Engen, and black-controlled Worldwide Africa Investment Holdings owns the remaining 20%.

By 2016 Engen wants to be the biggest player in the fuel distribution market in Africa south of the Sahara.

In a statement Chevron said that the envisaged transaction reflected Chevron’s international strategy to manage its fuel marketing operations in a more focused manner. The group stressed that the transaction did not affect its operations in South Africa, Botswana, Namibia and Swaziland.

Chevron South Africa chairperson James Seutloadi said the group remained committed to South Africa.

Source: Sake24, Friday 3 September 2010.