Major boost for Mozambique economy as Engen seals another deal

Thursday, 27 October 2011

African downstream petroleum powerhouse Engen has strengthened and renewed its commitment to the Mozambican economy with the closure of an agreement to acquire Chevron’s interests in that country.

Excited

Engen Mozambique MD Teodomiro Sarmento 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 acquisition builds on Engen’s existing presence in Mozambique. Since 1996, it has built up 13 service stations from Maputo Province in the south to Cabo Delgado in the north and a strong commercial sales presence.

Besides the improvements and business integration that can be expected in the short to medium term, Sarmento assures staff, motorists and business partners that it is business as usual in the operation and retail network. “The operation will carry on trading as a going concern; existing staff and relationships will be retained; and the supply plan is in place 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 Vision for growth focuses mainly on Sub Saharan Africa,” he explains. “This is a stride forward in our programme for sustainable growth in the region that works to the common benefit of the 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.

Other purchases recently closed between Engen and Chevron (trading as Caltex in some countries) are Zambia and Malawi in Southern Africa; Tanzania in East Africa; as well as Reunion and Mauritius in the Indian Ocean Islands. The Zimbabwe transaction has not closed as of the date of this release.