BP Botswana pullout to be smooth-GM

Brian Benza
Staff Writer | Friday March 19, 2010 00:00

 

BP announced early this month that it would be pulling out of five southern African countries, namely, Botswana, Zambia, Malawi, Tanzania and Namibia as a result of a strategic review.

In a telephone interview with Mmegi, BP Botswana General Manager Mahube Mpugwa said the company, which is the largest oil firm in Botswana, had not set any timeframes for pulling out, but it would be a long process that could take up to 18 months.

'Until we get a buyer, it's going to be business as usual,' Mpugwa said. 'At the moment we are putting all our efforts in making sure the business stays intact so that it remains as attractive as possible to potential buyers.'

Although he could not divulge specific details on business volumes, BP Botswana is the largest oil company in the country. It has 30 fuel stations and lucrative contracts with Air Botswana, the BDF, BCL, Debswana Mines and the Central Transport Organisation (CTO).

Commenting on the fate of its 41 employees, Mahube said they had no retrenchment packages for anyone because they were rather hoping the new buyers would absorb the staff.

'They are no termination packages in place,' he said. 'We are hoping that whoever buys the company will not be attracted only by the profits of the business but also by the team we have. 'Of course, that does not guarantee that the new owner will retain all the staff.'

BSE-listed Engen, which is Botswana's third biggest oil company, last week said it was looking at taking advantage of the opportunity presented by BP's pull out. This week, Kenya's KenolKobil said it was interested in BP Plc's marketing businesses in the five African nations from which BP is pulling out.

'Indeed, KenolKobil is very much interested in all these markets and the opportunities they offer for the growth of our group in Africa,' said the oil marketer in a statement. KenolKobil already has marketing operations in Burundi, Ethiopia, Kenya, Rwanda, Tanzania, Uganda and Zambia

Asked how many enquiries BP Botswana had received from potential buyers, Mpugwa said he had received many calls from local individuals and companies as well as from the region.

'We have received many enquiries,' he said. 'But I have referred all of them to our Acquisitions and Mergers Division in London; they are the ones handling the matter.'

In a statement, BP Africa CEO Sipho Maseko said he was confident the businesses they are looking to sell will offer good value and great potential to a purchaser, particularly given the strong economic outlook of the southern African region as a whole.

'A new owner can build on our good assets and grow the business further,' he said. 'All of our operations are leading marketing businesses with strong market shares, well-run operations, experienced and capable employees and strong health and safety performance.'

BP has been in Africa for over 80 years and has been operating in Botswana as an independent company since 1975 when it split from Shell.