By OGJ editors
HOUSTON, May 13 -- South Africa's Competition Commission recommended approval of a liquid fuels JV, to be called Uhambo Oil Ltd., between South African Sasol Ltd. and Malaysia's state oil company Petronas.
The Competition Commission recommended to the Competition Tribunal that the JV be allowed with certain conditions. The JV, announced last year, awaits approval from the tribunal (OGJ Online, Nov. 4, 2004).
If approved, the JV would combine Sasol's liquid fuels business and Engen Ltd. The value of the proposed merger was not disclosed. Petronas owns 80% interest in Engen, a refiner and marketer 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.
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.