BP has agreed to sell its fuels marketing businesses in Namibia, Botswana and Zambia to Swiss-based Puma Energy, the oil company announced on Monday.
BP also announced it had agreed to sell its 50% interest in each of BP Malawi and BP Tanzania to Puma Energy, subject to the pre-emption rights of its co-shareholders — Press Corporation Limited in Malawi and the government of Tanzania in Tanzania.
The decision to divest these businesses, which was first announced by BP in March 2010, followed a strategic review of BP’s Southern African refining and marketing businesses, BP said in a statement.
The sales did not include BP’s refining and marketing businesses in Mozambique or South Africa.
Puma Energy has confirmed that Angola’s state-owned petroleum company, Sonangol (Sociedade de CombustÃveis de Angola), intends to take a 10% stake in the acquired businesses.
Puma Energy chairman Pierre Eladari said, “We targeted the BP portfolio for the outstanding quality of its staff and assets, its key account customer base and for the strategic fit with our existing businesses in Mozambique, the Democratic Republic of Congo and Angola.
“As such, I am very pleased to have been able to conclude this deal with BP alongside our partners, Sonangol.”
Puma Energy had agreed to pay BP a total of $296 million in cash, subject to certain post-completion price adjustments, for all of BP’s interests in BP Namibia (100% share), BP Botswana (100%), BP Zambia (75%), BP Malawi (50%), and BP Tanzania (50%).
The sale in each country was subject to different regulatory approvals as required, and it was expected that the sale of BP Botswana would be completed in 2010 with completion in the other countries taking place in 2011.
“With the experience and existing businesses of their owners in the region and elsewhere, we believe that Puma Energy should be able to build on these good assets and grow the businesses further in line with the strong economic outlook for the area and in the best interests of all key stakeholders,” BP Southern Africa CEO Sipho Maseko said.
The five businesses supply commercial fuels, aviation fuel, lubricants, and a total of almost 190 service stations across the five countries.
They also own and operate storage depots, an import terminal in Namibia and, in total, employ 402 staff. — Sapa