Engen Picks up Major Stake in the DRC

South African firm Engen Petroleum Ltd. announced that it has entered into a deal to became the majority shareholder in Shell en Republique Democratique du Congo (SRDC) in the Democratic Republic of Congo (DRC). The South African firm has picked up a 60% stake in SRDC. 

The deal was first signed between the two companies in May; however it had to win the approval of the DRC government who holds a 40% stake in the company. The company is to be renamed Engen DRC. The deal also includes Shell’s 13% stake in Service des Entreprises Petrolieres (SEP Congo), a petroleum products distribution company.

The move sees Engen acquiring the majority share in the Congolese downstream firm, focusing on the expansion of the brand in DRC’s retail market.

Engen Managing Director and CEO, Rashid Yusof, says: “Engen welcomes this addition to our growing business in Africa. The deal is very much in line with our long-term growth strategy and business plan to extend our investments in Africa.”

To run Engen DRC the company has appointed Charles Nikobasa, former Managing Director of Engen Burundi to the position, with immediate effect.

The company already owns a minority stake in Aristea, whose major business is petroleum marketing in DRC under the brand name Fina. Aristea holds 60% of Fina Congo and is the managing partner, with the remaining 40% owned by the DRC government. Yusof explains that aside from this common investment in Aristea, Engen and Total are entirely different companies, with different shareholders and are competitors in the DRC marketplace. “This deal will see Engen boost competition in the DRC, which is in line with the Government’s objectives in this industry.”

Engen expects to be rolling out its retail products and brand over the next six months. The company has 29 service stations in the DRC and a large number of commercial and aviation customers.