frican downstream petroleum powerhouse Engen has strengthened and renewed its commitment to the Tanzanian economy with the official conclusion of an agreement to acquire Chevron’s interests in that country.

Excited

Engen Tanzania MD Seelan Naidoo says Engen has met all local regulatory and legislative conditions for the acquisition and looks forward to welcoming all staff into Team Engen. “We are very excited about this deal and look forward to building up the business, harnessing the expertise and potential of all our staff, and contributing to the economy of this fantastic country.”

Wayne Hartmann, GM of Engen International Business Division (IBD), says the broader Engen group has committed to supporting the affiliate with its vision for mutually beneficial regional growth. “Engen combines a proud record of operational excellence and dynamism with a strong commitment to the economies, communities and environments in which we operate,” he says. “We are confident that our involvement will contribute meaningfully to the local economy.”

Existing presence

The acquisition builds on Engen’s existing presence in Tanzania. Since 1996, the company has built up a considerable market share through a network of bulk fuel depots, a terminal and service stations in the country – boosted by the current acquisition of Chevron’s commercial and lubricants interests.

Hartmann says Engen plans to embark on a complete re-imaging programme, involving local suppliers, as soon as possible.

Besides the improvements and business integration that can be expected in the short to medium term, he assures staff and business partners that the operation is business as usual. “The operation will carry on trading as a going concern; existing staff and relationships will be retained; and a supply plan is developed to ensure uninterrupted product and service supply.”

African vision

The acquisition is in line with Engen’s programme of mutually-beneficial sustainable growth opportunities in Sub Saharan Africa and the Indian Ocean Islands, where it has a footprint in 22 countries and export agreements to 30, says Nizam Salleh, MD and CEO of Engen Petroleum Limited.

“Our EPIC 2016 Vision for growth focuses exclusively on Sub Saharan Africa,” he explains. “This batch of acquisitions will bring our presence in the region to 22 countries. It is a massive stride forward in our programme for sustainable growth in the region that work to the common benefit of company, the countries involved and even the continent. The potential for development and growth here is enormous and we are very proud to be part of it,” he says.

The remaining countries in the acquisition deal with Chevron (known as Caltex in some countries) are Zimbabwe and Mozambique. The completion of these acquisitions are still subject to various regulatory and government approvals.