By OGJ editors
HOUSTON, Feb. 19 -- South African Sasol Ltd. and Malaysian Petroliam Nasional Berhad (Petronas) agreed on principles to a merger to create a South African liquid fuels business combining Sasol's liquid fuels business and Engen Ltd.
Engen owns and managed a 125,000 b/d refinery as well as a lubricants blending plant in South Africa. Petronas owns 80% of Engen while Worldwide African Investment Holdings owns 20%.
A definitive agreement is expected to be reached during the third quarter. The liquid fuels business will involve marketing and distribution services in retail and wholesale markets. The joint venture will have operations in 14 countries and will include all of subSaharan Africa.
It is envisoned that Sasol and Petronas each will have 37.5% interest. Black Economic Empowerment (BEE) partners will hold a combined 25% interest.
BEE participation is expected to include Worldwide African Investment Holdings and other interested parties. BEE seeks to ensure that the joint venture follows good corporate citizenship principles, a Sasol release said.
