Vote of confidence for Malawi as Engen seals another deal

Wednesday, 01 December 2010

African downstream petroleum powerhouse Engen has given the Malawian economy a massive vote of confidence with the official conclusion of an agreement to acquire Chevron's interests in that country.

Excited

Engen Southern Africa regional Manger Francois Prins says Engen has met all local regulatory and legislative conditions for the acquisition. "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 great 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 Malawian operation has a network of 16 retail service stations, as well as commercial business relationships and lubricant sales. Francois Prins says Engen plans to embark on a complete re-imaging programme as soon as possible.

Besides the improvements and business integration that can be expected in the short to medium term, Francois Prins assures staff, motorists and business partners that the operation and retail network 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 21 countries and export agreements to 30 more, 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 is a massive stride forward in our programme for sustainable growth in the region that work to the common benefit of company and the countries involved. The potential for development and growth here is enormous and we are very proud to be part of it," he says.

Phased rollout

Engen plans a phased rollout over several months for the rest of the operations, as other sales and purchase agreements (SPAs) in the packaged acquisition obtain in-country government and regulatory approvals.

Other SPAs with Chevron (trading as Caltex in some countries) include Zimbabwe, Zambia and Mozambique in Southern Africa; Tanzania in Eastern Africa; as well as Reunion and Mauritius in the Indian Ocean Islands.

For further media enquiries please contact Engen Group Communications Manager Tania Landsberg on + (27) 83 393 3398 or email tania.landsberg@engenoil.com