The deal, which was officially signed in April 2008, sees Engen taking over Shell's 60% stake in Pizo Shell, a refined petroleum products marketing and distribution company. The balance of shares in Pizo Shell is held respectively by private investors (30%) and the government of Gabon (10%).
The move comes six months after Engen acquired Shell's interests in the Democratic Republic of Congo. As was the case in the DRC, it is Engen's intention that all employees will retain their current positions.
“Engen welcomes this investment opportunity. Our long-term growth strategy and business plan involves extending 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 Hendrik van der Walt, Engen's regional manager for Western Africa.
Engen is an African firm, owned 80% by Petronas (Malaysia's national oil company) and 20% by South Africa's black-owned Worldwide Africa Investment Holdings.
Van der Walt says Gabon, which boasts one of the continent's highest per-capita GDP figures, is considered one of Africa's better investment opportunities for Engen. “This transaction will contribute 100 million litres a year towards our vision to be a "Champion in Africa" by 2016.
This deal means Engen owns 28% of retail market share, through 23 company-owned service stations, 8% of the Mogas market, 58% of the ADO market, 12% of the Jet fuel market and 22% of other markets.
