BP to rebrand as Puma Energy

Brian Benza
Staff Writer | Tuesday November 16, 2010 00:00

BP announced early this year its intention to dispose of its fuel marketing business in Namibia, Zambia, Malawi, Tanzania and Botswana, which was followed by a scramble for the assets from both local and international investors.

However, yesterday it emerged that Puma Energy, a subsidiary of Amsterdam-based commodities trader Trafigura Beheer B.V., has outpaced other bidders for the assets in the five countries for a total sum of US$296 million.

Although no confirmation could be sought on BP Botswana's value, Industry sources say the assets are worth an estimated US$70 million. The development will see BP's assets including its thirty service stations in the country being rebranded Puma Energy.

Trafigura officials are expected in Gaborone today to push for the finalisation of the takeover deal this year, as they will be eager to maintain the lucrative contracts that BP Botswana holds in the Industry.

BP Botswana has a whole range of commercial customers and its main contracts are with Debswana, BCL, BDF, Central Transport Organisation (CTO); the government fleet, construction companies as well as transport companies. Among some of BP's most profitable contracts include the Matshelagabedi and Orapa power peaking plants which consume around 50, 000 litres of diesel a day and 17, 000 litres per hour per unit respectively.

Another cash cow for Puma Energy, which currently has service stations in South America and West Africa, will be Debswana's cut 8 expansion project which will see fuel consumption at Jwaneng mine rising from 28 million litres a year to 100 million litres a year.

In a statement released yesterday, BP said Puma Energy has agreed to pay a total of $296 million in cash for the assets, subject to certain post-completion price adjustments, for all of BP's interests in BP Namibia (100 per cent share), BP Botswana (100 per cent), BP Zambia (75 per cent), BP Malawi (50 per cent), and BP Tanzania (50 per cent).

'The sale in each country is subject to different regulatory approvals as required and it is expected that sale of BP Botswana will complete in 2010 with completion in the other countries to take place in 2011.

'With the experience and existing businesses of their owners in the region and elsewhere, we believe that Puma Energy should be able to build on these good assets and grow the businesses further in line with the strong economic outlook for the area and in the best interests of all key stakeholders,' said Sipho Maseko, CEO of BP Southern Africa. The five businesses in which BP is selling its interests supply commercial fuels, aviation fuel, lubricants, and a total of almost 190 service stations across the five countries.

Puma Energy was formed in 1997, and has grown rapidly to become one of the largest independent downstream companies. Headquartered in Switzerland, Puma Energy currently operates in over 25 countries worldwide. Puma Energy, which is a subsidiary of Trafigura Beheer B.V. Puma Energy, first entered the African downstream sector in Congo in 2002, before expanding activities into Ghana, Mozambique, Nigeria, Ivory Coast, DRC and Angola.