Engen grows African footprint

Cape Town - African petroleum multinational Engen announced on Thursday that it has again increased its African footprint by acquiring Total's operations in three countries - Guinea Bissau, Rwanda and Burundi. The deal, which was signed in France in July became effective on Wednesday.

General manager of Engen's international business division, Wayne Hartmann, said that the deal further strengthens Engen's position on the continent. "The company has this year taken over Shell's controlling interests in Lesotho and Gabon as well as DRC interests in 2007," he said.

After the deal was completed, Engen had a presence in 17 sub-Saharan African countries.

Hartmann declined to give figures for the price of the deal. "We've negotiated a good price," he said. "It is many millions of dollars."

Describing the company's plans for the future, Hartmann said Engen is likely to expand its refining capacity in South Africa, and to move into other energy products. He did not rule out a return to a listing on the South African stock exchange.

"It is not part of our plans at present," he said. "But you can never say never. "

He pointed out that Engen is listed on the Botswana exchange, and that it is part of the company's policy to encourage local participation.

Hartmann said that the company's financial prudence has allowed it to amass sufficient money to fund its expansion.

"We are at present the fourth-biggest in sub-Saharan Africa," he said. "Our aim is to be number one or two by 2016."

Expansion into upstream exploration is not on the cards for Engen, he told a media briefing in Cape Town. That end of the business is handled by the parent company, Petronas, Malaysia's national oil company.

- I-Net Bridge