Engen expansion plans in South Africa – BusinessTech

Petroleum group Engen and Vivo Energy have announced the completion of their merger, with the combined group laying out commitments to invest and expand Engen’s operations in the country.

The commitment comes after competing brand, BP, announced a similar long-term strategy to invest in South Africa a week after Shell announced it would be exiting the downstream (service station) business in the country.

As part of the merger, former Engen owner Petronas, a Malaysian energy group, sold its 74% shareholding in the group to Vivo Energy.

The combined Vivo Energy Group now has over 3,900 service stations, and more than two billion litres of storage capacity across 28 African markets.

Stan Mittelman, CEO of the Vivo Energy Group, and Seelan Naidoo, Managing Director and CEO of Engen, said the new company will combine the ‘best of both’ from Engen and Vivo Energy, positioning the combined organisation for growth in the years to come.

“The enlarged Vivo Energy will only make changes that add value, keeping a ‘business as usual’ approach for customers, partners, suppliers, and employees,” they said

“As part of the transaction, Vivo Energy has committed to invest a significant amount of capital expenditure to maintain and grow Engen’s operations in South Africa, ensuring a modern and efficient business, for the benefit of the South African population.

The group has also committed to major investments in renewable solar power generation projects to help transform the economy, while supporting a just energy transition for the country.

BP and Shell

BP announced last week that it has drawn up a “long-term” strategy for its presence in South Africa, which includes expanding its over 500 forecourts and upgrading its service offerings across the country.

This followed notice from competing petroleum group, Shell, which outlined its plans to exit its South African downstream business, which includes over 600 service stations.

In the wake of that announcement, BP said it wanted to “signal its commitment to a long-term future” in the country.

Read: BP plans big expansion in South Africa – as Shell heads for the door

Source link