The deal, which is subject to pre-emptive rights, involves Shell's 60% stake in Pizo Shell, a refined petroleum products marketing and distribution company. It is Engen's intention that all employees will retain their current positions.

The balance of shares in Pizo Shell is held respectively by private investors (30%) and the government of Gabon (10%).

The latest move comes just four months after the company successfully acquired Shell's interests in the Democratic Republic of Congo.

“We welcome this investment opportunity. Our long-term growth strategy and business plan is to extend our investments in Africa. We have the utmost confidence in Gabon, its government and its people and are very positive about the prospects and opportunities for this company now and in the future,” says Rashid Yusof, MD and CEO of Engen Petroleum Limited.

Owned 80% by PETRONAS (Malaysia's National Oil Company) and 20% by South Africa's black-owned Worldwide Africa Investment Holdings, the company is an African firm, committed to growing its business in sub-Saharan Africa to the mutual benefit of the company and its stakeholders, including the countries and communities within which it operates. The company enjoys the largest share of market in South Africa and has a significant presence in 13 other countries.

Yusof says Gabon, which boasts one of the continent's highest per-capita GDP figures, is considered one of Africa's better investment opportunities for the company. “This transaction will contribute 100 million litres a year towards our vision to be a ‘Champion in Africa' by 2016.

Gabon's downstream petroleum market size is estimated at 560 million litres per annum, of which Shell's current market share is 18%.

Xavier Le Mintier, the Executive Vice President of Shell Oil Products Africa adds, “We are pleased to have been able to secure for the government and other minority shareholders, a partner who has expressed a strong will to strengthen this partnership for the further growth of the company.”

Le Mintier concludes, “The sale is consistent with our global strategy, known as ‘More Upstream and Profitable Downstream'. We remain committed to our downstream business across Africa."

[21 Apr 2008 10:34]

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