East African Business Week (Kampala)
Bosco Hitimana
2 November 2008
Kigali — Engen Petroleum Limited, a South African refined petroleum Products Company is set to acquire Total's downstream operations in Rwanda, Burundi and Guinea Bissau.
The company announced in a statement posted on its website.
The statement says that under the sale and purchase agreements signed between the two companies, Engen will take over Total's entire shareholding in its downstream businesses in Rwanda, operating under the name Total Rwanda SARL.
Engen will also take control of Total's 100% shares in Total Burundi, 85.11% shares in Total Guinea-Bissau and 50% interest in Aero Services SARL, a Total's interest in the Aviation business in Guinea Bissau.
In another statement, the company announced finalising acquisition of Shell Petroleum Company Limited's downstream business in Lesotho. With intense interests in Lesotho, the deal is expected to push Engen's market share up to 34% in the country.
"We see this as another solid step in our expansion. Engen has returned profits in every country where it has operations in sub-Saharan Africa and our outlook is positive for these three countries. They are experiencing good GDP growth and relatively low inflation rates, which bodes well," Engen's Managing Director and Chief Executive Officer, Mr. Rashid Yusof said in the statement.
Without divulging details Total Rwanda SARL Director General, Mr. Mamadou Ndom confirmed the deal to East African Business in Kigali last week.
A statement issued by Engen says that subject to the necessary approvals and pending business interrogation, the signed deals in the three countries will be finalised before the end of this year.
"Engen has committed to continuing operations as until finalization of the deals and to retain staff and existing supply and business relationships in all countries," the statement says.
By expanding to Rwanda, Engen will take over 19 service stations and one depot representing sales of 38million tones a year equivalent to 22% market share controlled and owned by Total Rwanda.
Engen's expansion to Burundi will complement its existing business in the country with 29 additional commercial customers.
In Guinea Bissau, the company will gain access to four service stations and 37 commercial customers who represent 29% market share.
The company will also take control of 50% shares in Aero Services SARL in Guinea Bissau and obtain Jet A1 fuel storage, Avgas storage and into-plane refueling truck capacity.
Owned 80% by PETRONAS (Malaysia's national oil company) and 20% by South Africa's black-owned Worldwide Africa Investment Holdings, Engen is committed to growing its business in Sub-Saharan Africa. The company's footprint in the region extends to 17 countries outside South Africa.
Total is a multinational energy company committed to leveraging innovation and initiative to provide a sustainable response to the growing energy demand. Based in France, Total was last year ranked the fourth largest publicly-traded integrated international oil and Gas Company and a world-class chemicals manufacturer. The company operates in more than 130 countries and has 96, 400 employees.
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