By OGJ editors
HOUSTON, Nov. 4 -- South African Sasol Ltd. and Malaysian Petroliam Nasional Bhd. (Petronas) have signed definitive agreements outlining a merger to create a South African liquid fuels business combining Sasol's liquid fuels business and Engen Ltd. The value of the merger was not disclosed.
The companies earlier this year affirmed that discussions were under way (OGJ Online, Feb. 19, 2004.) Petronas owns 80% of Engen, a refiner and marketer.
Upon closing, Engen will be renamed Uhambo Oil Ltd., based in Cape Town, South Africa.
Terms call for Sasol and Petronas to each have 37.5% interest in Uhambo. Black Economic Empowerment (BEE) partners will hold a combined 25% interest in the new company. BEE participation will include Worldwide African Investment Holdings, which owns 20% of Engen.
The transaction is subject to approval of South African and European Union competition authorities. Sasol said approvals are expected during the first half of 2005.
Uhambo will own the 150,000 b/cd Engen Petroleum Ltd. refinery at Durban, Sasol's share in the 87,547 b/cd National Petroleum Refiners of South Africa Pty. Ltd. refinery at Sasolburg, and about 1,600 service stations in South Africa as well as liquid fuel operations in 14 sub-Saharan countries.
