Total has agreed to acquire Gulf Africa Petroleum’s (GAPCO) assets in Kenya, Uganda and Tanzania, as part of its expansion plans in Africa.
Gulf Africa Petroleum is jointly owned by Reliance Exploration & Production DMCC and Fortune Oil.
As part of the transaction, Total will acquire two logistical terminals in Mombasa, Kenya and Dar es Salaam, Tanzania in addition to a retail network of around one hundred service stations.
Total said that these assets are complementary to the company’s existing operations in the three countries and their acquisition will strengthen its logistics in the region.
Furthermore, the company will be able to accelerate the growth of its service station network, particularly in Tanzania.
Total marketing and services president Momar Nguer said: "This acquisition is in line with Total’s growth strategy for the distribution of petroleum products and services in Africa, which aims at expanding in fast-growing regions while maintaining high profitability.
"These assets complement our activities in East Africa and will help us fully leverage synergies of size, as well as build the most competitive integrated regional supply, logistics and marketing base."
The transaction is subject to the approval by authorities in the three countries.
It is expected to be completed within the coming months, and at this time the net proceeds for the sale will be finalised.
GAPCO currently operates 108 retail outlets and owns 260 TKL of storage capacity.
The company’s operating subsidiaries in Tanzania, Kenya and Uganda are engaged in petroleum product import, and trading, storage, distribution, marketing, supply and transportation of oil products in East Africa.
