Royal Dutch Shell Plc  .com Rotating Header Image

Business Report: Engen buys 60% share of Shell’s DRC unit

May 30, 2007
By Justin Brown

Johannesburg – Engen Petroleum had agreed to acquire a 60 percent stake in Shell’s Democratic Republic of Congo (DRC) petroleum business as well as a 13 percent stake in a DRC petroleum distributor, Engen said yesterday.

Engen Petroleum spokesperson Tania Landsberg said the company would not disclose the value of the purchase due to confidentiality agreements.

Landsberg said she did not know how much fuel the DRC businesses distributed in the country nor the number of people that the operations employed.

The deal is subject to approval by the DRC government.

Engen said the acquisition was part of the group’s strategy of expanding its petrol distribution in sub-Saharan Africa.

Engen distributes 26 percent of South Africa’s fuel.

The company also has a “significant presence” in 14 other African countries.

Engen chief executive Rashid Yusof said in a statement yesterday: “Engen welcomes this investment opportunity. We have the utmost confidence in the DRC, the government and its people and are very positive about the prospects and opportunities for this company now and in the future.”

“We have been interested in this specific deal for some time and consider it a great opportunity to build our network in Africa,” the Engen chief added.

Engen operates in the DRC through a joint venture with Total and Belgian-based Aristea, which distributes petroleum.

Engen has a 49 percent stake in Aristea. Aristea holds 60 percent of Fina Congo and is the managing partner.

The remaining 40 percent is owned by the DRC government.

Xavier Le Mintier, a Shell Oil Products Africa executive, said: “Shell’s divestment is in accordance with the Shell group strategy to focus on more upstream and profitable downstream business.”

http://www.busrep.co.za/index.php?fSectionId=566&fArticleId=3856522

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

0 Comments on “Business Report: Engen buys 60% share of Shell’s DRC unit”

Leave a Comment

%d bloggers like this: