Engen Conclude Part of Deal For Chevron's Assets
| Engen have announced that it had concluded three deals to acquire some of the sub-Saharan Africa and the Indian Ocean Islands assets previously owned by Chevron. The deals will see Engen entering the new territories of Réunion and Malawi, while strengthening its presence in Zambia. But the three deals formed part of a batch of seven agreements with Chevron to acquire some of its assets in Zimbabwe, Mozambique, Tanzania and Mauritius. The deals in these four countries were, however, still subject to all the relevant in-country regulatory and legislative approvals and had yet to be finalised. International business division GM Wayne Hartmann reported that Engen would take over Chevron’s retail networks and commercial operations in the three countries and would embark on the reimaging of service stations as soon as is practicably possible. In Réunion, Engen had acquired a network of 32 retail service stations, as well as commercial business relationships, lubricant sales and bulk fuels storage facilities. In Malawi, Engen had acquired a network of 16 retail service stations, as well as commercial business relationships, lubricant sales and bulk fuels storage facilities. Through the acquisition of Chevron’s Zambian assets, Engen said that it would be in a position to build significantly on its established presence, which was first developed in 1999. “The acquisition comprises 24 service stations, commercial customers, as well as a bulk fuels depot and a lubricants warehouse,” Hartmann reported. Engen currently markets fuels, lubricants, bitumen and chemicals in Zambia through ten service stations, with an additional two service stations currently under construction. It also services a commercial customer base in the country and recently constructed a fuels depot, a lubricants warehouse and offices in Lusaka. Hartmann also insisted that the business operations, retail and commercial networks, logistics and storage arrangements in the new territories would continue as before. “Operations will carry on trading as going concerns; existing staff and relationships will be retained; and in-country supply plans have been developed to ensure uninterrupted product and service supply,” he said. Engen Petroleum CEO Nizam Salleh said that the acquisitions represented major progress in the company’s vision for mutually-beneficial sustainable growth in the region. Source: PETROLWORLD, Wednesday 1 December 2010 |