Fired-up Puma Energy's 'grand entry' into Botswana

MBONGENI MGUNI
Staff Writer | Friday November 19, 2010 00:00

Having sealed the US$296 million (P1.9 billion) takeover of BP's assets in southern Africa, Puma Energy has unveiled an expansionary plan for Botswana, which accounts for a healthy portion of the purchase price.

Earlier this week, Puma Energy, a Swiss-based international petroleum giant, snapped up BP's assets in Botswana, Namibia and between 50 and 75 percent equity in BP Malawi, Tanzania and Zambia.Yesterday, Puma Energy Chairman Pierre Eladari told Mmegi that besides the rebranding of BP's 30 retail sites, storage infrastructure and other assets, the Swiss titan aims to derive maximum benefits from the opportunities in the petroleum industry.Prior to its sale, BP operated in Botswana for 35 years, during which it secured blue chip government, quasi-government and private clients such as Debswana, BCL Mine, BDF, Central Transport Organisation (CTO), the government fleet, construction and transport companies.

'There are many ways to tackle the Botswana market; we have to rebrand and we are already on that. We believe the market is in growth and in terms of infrastructure, there's need for more development to follow this growth,' Eladari said from his Geneva headquarters.

'As we move into a more operational mode, we will reveal more details. At the moment, we are looking at registration formalities to follow and in seeking this regulatory approval, we do not foresee any problems.

'However, we have a strong track record in Africa and our business has been accepted by private customers and government.'Hinting at further penetration into lucrative mining contracts, Eladari said far from retrenching local staff, Puma Energy would have an 'expansionary outlook'.

'We are in a growth dynamic and the question is not about trying to downsize, but rather focusing on sustainable growth. As a company in Africa, we have to retain good human resources,' he said.

Part of the plan for Botswana includes teaming up with local partners more familiar with the local operating environment.

'We are always open for local partnerships and we have a lot of them in our activities all over the world. These have proved very successful for our business development.

'We are open to that although we have not moved to anything specific in Botswana. We would welcome good quality partnerships,' said the Puma Energy chairman.In Botswana, Puma Energy will be looking to replicate the success it has enjoyed in Ghana, Mozambique, Nigeria, Ivory Coast, DRC and Angola. The Botswana deal - expected to be complete by year-end - will mark the first time Puma Energy ventures into a landlocked African state.

In addition, Botswana's petroleum supplies are largely route through South Africa, although government is on the cusp of brokering another route through Mozambique and expanding the marginal supplies from Namibia.Eladari said Puma Energy was well positioned to leverage on future policy changes in the diversification of fuel supply sources and routes.

'It's not a major challenge for us because we have storage facilities around Botswana. If the new routes become available, we will be very comfortable and well-positioned with our new business and storage facilities in Namibia as well as existing facilities in Mozambique,' he said.Puma Energy's latest transaction gives the petroleum giant 188 fuel service stations, 11 fuel storage terminals, a range of key mining accounts and an aviation fuel business with a presence at 22 airports. More than 400 new employees will also be added to the global business.

Prior to the acquisition, Puma Energy had more than 30 operating subsidiaries located in over 20 countries worldwide and employing 1, 200 people. The global company owns and operates over 12.5 million barrels of refined product storage and supplies in excess of 14 million barrels of products every year to its customers.