Engen Petroleum Limited, South Africa’s leading petroleum marketing company has signed Share Purchase Agreements for Chevron’s downstream interests in seven countries in Sub Saharan Africa and the Indian Ocean Islands.

The deal involves the acquisition of 100% of Chevron downstream marketing companies in Zambia, Malawi, Tanzania, Mauritius, Reunion and Zimbabwe, as well as the assets of Chevron in Mozambique.

This is subject to the various government and regulatory approvals in each country, but is expected to be finalised shortly.

This signals another major step forward for Engen’s growth strategy, which is keenly focused in this region.

The last four years have seen Engen acquire downstream interests from other International Oil Marketing Companies in Burundi, DRC, Gabon, Guinea Bissau, Lesotho and Rwanda.

It is Engen’s intention that all employees will retain their positions.

“This is a wonderful opportunity to extend our investments in line with our growth objectives. We are committed to the companies involved and the people and believe they will be instrumental in our success - we are positive about the prospects for growth and development,” says Nizam Salleh, Managing Director 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, Engen is an African firm, committed to growing its business to the mutual benefit of the company and its stakeholders, including the countries and communities within which it operates. Engen enjoys the largest share of market in South Africa, and has a significant presence in 17 other African countries in the region.

“This is a significant investment and we expect the transaction will contribute in excess of 500 million litres a year towards our vision to be a ‘Champion in Africa’ by 2016,” says Salleh.