Following this week’s approval by South Africa’s competition authorities, global energy group ExxonMobil and South Africa’s Engen Petroleum will be teaming up in a lubricants deal, under which ExxonMobil provides technical and marketing support and Engen becomes the sole marketer and distributor of a range of ExxonMobil’s lubricants in South Africa, Namibia, Botswana, Lesotho and Swaziland.
ExxonMobil does not have a retail presence in South Africa. Engen has the largest local retail market share of all the energy companies, with a market share of 27,1% in petrol and 25,95% in diesel in 2002, according to the latest data from the South African Petroleum Industry Association (Sapia).
The range of lubricants that Engen will manage and market includes Engen, Mobil, and selected Esso products as well as Petronas Syntium.
Malaysian state-owned oil company Petronas is Engen’s majority shareholder.
“This alliance is an outstanding opportunity to grow the presence of both the Engen and Mobil lubricants brands,” said Fawzy Muhiyiddin, CEO of Engen. “We are excited about the benefits that will accrue to both companies. We are confident that our particular strengths will enable us to fulfill the diverse needs of all our customers.”
Roland Frey, director of sales at ExxonMobil Lubricants and Specialties: Africa/Middle East, added: “This alliance combines the unique strengths of South Africa’s leading marketer of petroleum products with a global leader in lubricants and will provide our customers with the widest lubricant brand and product offering together with leading-edge technology support.”
The companies envisage that all the integration processes will be completed during April and May and that full implementation will take place in June together with an official launch.
“We are delighted to have received the go-ahead for the alliance,” commented Steve Williams, business manager of Engen Lubricants and Special Products. “We are working diligently on the various implementation systems and procedures in order to make the integration as seamless as possible. During June, we will be in a position to offer all our customers, consumers and motorists a wide range of quality automotive and industrial lubricants.”
ExxonMobil is the world’s largest manufacturer of lubricant basestocks, a leading marketer of finished lubricants, and the world’s leading producer of synthetic lubricants. It supplies lubricant and petroleum specialty products to nearly 200 countries and territories through its global network of 13 lube refineries.
In South Africa, Engen has a network of more than 1 250 service stations and more than 450 Quickshops. — I-Net Bridge