Total is expanding in Africa with the acquisition of Gulf Africa Petroleum Corporation’s (GAPCO) assets in Kenya, Uganda and Tanzania. The transaction is subject to the authorities’ approval in the three countries.
Gulf Africa Petroleum is a holding company incorporated in Mauritius with affiliates in Kenya, Uganda and Tanzania. It is jointly owned by Reliance Exploration & Production DMCC and a minority shareholder, Fortune Oil Corporation, Mauritius.
The principal assets being acquired are two terminals in Mombasa, Kenya and Dar es Salaam, Tanzania, as well as a retail network of around 100 service stations. These acquisitions are complementary to Total’s existing operations in Kenya, Uganda and Tanzania and will strengthen Total’s logistics in the region and significantly accelerate the growth of its service station network, particularly in Tanzania.
“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,” said Momar Nguer, president, Total Marketing & Services.
“These assets, which complement our activities in East Africa, will help us fully leverage synergies of size and build the most competitive integrated regional supply, logistics and marketing base.”
Total is the leading petroleum product retailer in Africa, with a network of more than 4,000 service stations.
The company aims to grow its market share from 17% in 2015 to more than 20%.