Petronas unit buys some of Total's assets in Africa

 

CAPE TOWN: South Africa's Engen petroleum company, majority owned by Petronas (Petroliam Nasional Bhd) has acquired Total's operations in Guinea Bissau, Rwanda and Burundi, a senior official said yesterday.

The deal, signed on July 31 in Paris and effective from Wednesday, will see Engen take over Total's entire shareholding in its downstream businesses in Rwanda (Rwanda SARL) and in Total Burundi.

Engen also bought a 85.1 per cent stake in Total Guinea Bissau and 50 per cent of Aero Services SARL, with the remaining 50 per cent held by Petrogal Guinea Bissau Ltd.

"We've been actively pursuing a growth programme in sub-Saharan Africa ... It is our intention to become a significant player in Africa," Wayne Hartmann, general manager for Engen's international business development unit said.

He said the deal was worth millions of dollars, without providing a final figure.

"We do have the financial resources to make acquisitions and grow our business," he said, adding that Engen was pursuing an expansion strategy that would make it the No. 1 or 2 downstream petroleum products firm on the continent by 2016.

Hartmann said the company was closely monitoring the political situation in Zimbabwe, but added that the current environment would not stand in the way of concluding a deal with BP there within the next six months. He did not elaborate on what the deal entailed.

Hartmann said the Total purchases strengthened Engen's position on the continent, where it operates in 17 countries.

The company earlier this year took control of Royal Dutch Shell's controlling interests in Lesotho and Gabon, and in the Democratic Republic of Congo last year. - Reuters