South Africa's Engen extends its reach

CAPE TOWN

South African petroleum company Engen will focus next on Ghana, Kenya and Uganda as it expands its presence on the continent following a deal to acquire Chevron Corp’s downstream operations in some African countries, a senior official has said.

"Our operation in Ghana is a little on the small side, so it’s an obvious one where an acquisition would make sense, Kenya and Uganda probably ditto. After this deal those three would be the focus areas," Wayne Hartmann, Engen’s general manager for international business, told reporters.

Engen, majority owned by Malaysia’s national oil company, has so far concluded three of seven deals with Chevron that will significantly boost its operations on the resource-rich continent.

Engen said in September the deal — in seven African countries and Indian Ocean islands — was expected to contribute in excess of 500 million litres a year.

Engen will enter new territory in Reunion island and Malawi, while strengthening its presence in top copper exporter Zambia.

Hartmann declined to say how much the company paid for the Chevron assets.

The deals for Chevron’s interests in Zimbabwe, Mozambique, Tanzania and Mauritius were still subject to regulatory and legislative conditions in those countries, he said.

"We see Zimbabwe as an important part of our regional network for the future... it’s our expectation that Zimbabwe and its political matters and issues will be sorted in time and then we will be well-placed in the region," he said following a news briefing.

Downstream-focused Engen, which counts Exxon Mobil as a global partner, already operates in 17 African countries and runs the second largest refinery in South Africa, the Enref plant, which has a capacity of 125,000 barrels-per-day.

—Reuters