BP to sell five African assets to Swiss firm Puma Energy for $296 million
15 November 2010
BP today sold its fuel marketing businesses in several African countries to Puma Energy for $296 million, the latest asset sale by Europe's largest oil company's plan to raise $30 billion through asset sales to fund the Gulf of Mexico oil spill costs.
BP agreed to sell its fuels marketing businesses in Namibia, Botswana and Zambia, as well as its 50-per cent stake 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.
Puma Energy has agreed to pay BP a total of $296 million in cash, for BP's wholly owned interests in BP Namibia and BP Botswana, BP 75 per cent stake in Zambia, and BP's 50 per cent stake in both BP Malawi and BP Tanzania.
The five businesses in which BP is selling its interests 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 and, in Namibia, an import terminal and, in total, employ some 402 staff.
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. The sales do not include BP's refining and marketing businesses in Mozambique or South Africa, said the London-based BP.
Pierre Eladari, chairman of Puma Energy, 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."