Why Total is set to take over regional oil industry after Gapco acquisition

A Total filling station. Analysts say the takeover will give the oil marketer a headstart over its rivals because of Gapco’s massive assets. [PHOTO: FILE/standard]

French oil major Total Outre Mer is set to become the dominant player in East Africa’s oil industry with the acquisition of Gulf African Petroleum Corporation (Gapco).

The Paris-headquartered firm, with well-established links through Total Kenya, Total Uganda and Total Tanzania, will now enjoy the full economies of scale in both downstream and upstream sectors, riding on the massive assets of Gapco.