Sasol partners with Malaysia's Petronas
November 2, 2004
Kuala Lumpur - Malaysia's national oil and gas company Petronas on Tuesday announced its Petronas International unit has signed an agreement with Sasol to create South Africa's largest liquid fuels business.
Petronas, together with their respective black economic empowerment partners Worldwide African Investment Holdings and a Sasol empowerment entity, Tshwarisano LFB Investment, have signed the agreement.
Under the agreement Sasol and Engen, a South African oil refiner which is 80 percent held by Petronas, will merge their liquid fuel businesses into a new joint venture to be known as Uhambo Oil.
The company's headquarters are to be located in Cape Town.
"This joint venture is a positive and exciting development for Petronas," Hassan Marican, Petronas president and chief executive officer said.
On a pro-forma basis, Uhambo is expected to report sales of R33 billion ($5.36 billion) and earnings of R1.2 billion rand for the 2004 financial year.
Petronas will hold a 37.5 percent stake in Uhambo, Sasol a 37.5 percent stake and Worldwide and Tshwarisano will take a 12.5 percent stake each.
Petronas said subject to official approval, Uhambo will be the leading South African liquid fuel refining, marketing and distribution business.
It said Uhambo will have an estimated market share of about 33 percent in South African white petroleum products.
Petronas' Hassan, who is also the non-executive chairman of Engen, will be appointed as non-executive chairman of Uhambo while Jock McKenzie will be offered the position of chief executive officer in January 2005. - AFP
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