Fuel distributor Total is taking over Gulf Africa Petroleum Corporation's (GAPCO) assets in Kenya, Uganda and Tanzania for a yet to be disclosed amount. Reliance Industries Limited, which owned GAPCO through Reliance Exploration & Production DMCC, is exiting its African fuel retail business by selling its entire 76% stake to Total SA of France.
Reliance Industries owned a 76% stake in GAPCO while Fortune Oil Corp, Mauritius owned the remaining 24%. According to reports, Total is acquiring stake of both firms. The proposed transaction is subject to regulatory approvals and other closing conditions.
"Reliance Exploration & Production DMCC, an indirect wholly owned subsidiary of RIL and Total, have executed agreements on May 30, 2016 for the sale of the entire 76 per cent interest held by REPDMCC in the Mauritius-incorporated Gulf Africa Petroleum Corporation (GAPCO)," RIL said in a statement at the end of May.
"Since the acquisition of 76 per cent equity interest in GAPCO by REPDMCC in 2007, GAPCO has significantly grown and is one of leading petroleum marketing companies in East Africa, which now operates 108 retail outlets and owns 2,60,000 kilolitre of storage capacity," the statement added.
Good business for Total
GAPCO has been primarily engaged in petroleum product import and trading, storage, distribution, marketing, supply and transportation of oil products in East Africa. In Uganda GAPCO was incorporated in 1994 by acquiring all assets and shares of Esso Standard Uganda. GAPCO Uganda has extended storage and distribution services in major towns across Uganda ever since.
Florentin de Loppinot Managing Director, Total Uganda, commenting on the takeover, said the addition of GAPCO’s assets to their retail network will enable them serve more customers. The acquisition will bring the total of Total Uganda service stations to 125 in the country. In Uganda, the acquisition is expected to be completed between October and December.
‘’Total Uganda is pleased to be part of Total’s expansion drive in East Africa. The addition of GAPCO’s assets to our retail network will enable us to serve more customers with our quality products and within convenient locations. As we celebrate our 60 th year in the country, safety, operational excellence and customer focus will remain our priorities in the years to come.’’ Florentin de Loppinot Managing Director, Total Uganda
The deal also gives Total ownership of two logistical terminals in Mombasa in Kenya and Dar es Salaam in Tanzania, as well as a retail network of over 100 service stations. The takeover will further expand Total’s retail base which is already notable in the three countries. In Uganda, GAPCo has two depos; one in Kampala and the other in Jinja, eastern Uganda.