BP, Sasol Oil announce depot joint venture agreement
Pretoria|SECURITY|Africa|BP Southern Africa|Road|Safety|Security|Africa|Alrode Fuel Depot|Security|Waltloo Depot|Energy|Maintenance|Security|Bernard Klingenberg|Gerard Derbesy|Security|Operations
© Reuse this
The Competition Commission has approved a merger application filed jointly by Sasol Oil and BP Southern Africa (BPSA), in which the approval of a proposed joint venture (JV) between the two companies was requested.
The unincorporated JV will comprise the co-ownership of two strategically-positioned depots – the Alrode Fuel Depot in Alberton and the accompanying Beryllium site, both of which were previously owned exclusively by Sasol Oil; and the Waltloo Depot in Pretoria, which was previously owned exclusively by BPSA.
It is anticipated that the JV agreement will come into effect in the second half of 2012, once all the suspensive conditions have been met.
The two companies will own both depots in equal shares, which gives them equal access to the storage capacity of the depots. A JV agreement, read in conjunction with an operating agreement will govern the JV, generally, as well as the operations within the co-owned facilities.
“Meeting customers’ needs is a key priority for us and we can now reach customers quicker and more efficiently in the northern areas. We are pleased that BP Southern Africa saw the potential value in this partnership,” says Sasol South African Energy group executive Bernard Klingenberg.
“Ensuring security of supply in the areas we operate in is important to us and entering into a partnership such as this one helps us to achieve this strategic intent,” added BPSA CEO Gerard Derbesy.
In addition to bringing both companies closer to their customers, the JV will ensure that distribution is safer and more efficient through shorter road deliveries to customers, optimised operations and improved road safety associated with shorter delivery routes.
While a jointly-appointed executive committee will make the strategic decisions pertaining to the operation and maintenance of the JV, care has been taken to ensure that certain key matters will be referred to the executive management of each company.
Owing to the fact that the JV does not amount to no more than the co-ownership of the depots, the two companies will continue to operate independently as competitors in the industry.
Edited by: Martin Zhuwakinyu
© Reuse this
Comment Guidelines (150 word limit)
Other Energy News
Russia's second-largest oil company, privately controlled Lukoil, said on Friday it planned to invest in Nigeria with US oil major Chevron Corp, part of its push to seek opportunities away from Russia's state-dominated oil sector. "We have decided to enter a joint...
Between 2008 and 2010, only 4% of students in sub-Saharan Africa graduated with engineering and construction degrees
The skills shortage in the oil and gas development sector in Southern Africa was hampering economic development in the region, said University of the Witwatersrand Business School head and director Steve Bluen at a skills development seminar, in Johannesburg, earlier...
MARAIS ‘SPYKER’ VAN HEERDEN 3D Draughting’s MD flanked by Bentley Systems' global marketing director Anne-Marie Walters and building, electrical plants and plant products VP Ken Adamson
South Africa was again recognised for excellence in engineering earlier this month, when Cape Town-based computer-aided design draughting (CADD) specialist 3D Draughting took top honours at global infrastructure software manufacturer Bentley System’s Be Inspired...
Article contains comments
Industrialisation remains a major part of the South African developmental agenda and an important vehicle towards achieving the Department of Trade and Industry’s (DTI’s) target of creating 100 black industrialists in the next five years, Trade and Industry...
The construction of a new innovation hub in the heart of the Dube TradePort, in Durban, was set to kick off in March 2016, as Dube TradePort Corporation sealed a R160-million lease agreement with Eureka Capital. Eureka Capital planned to develop a seven-storey 21 500...
South Africa will become the first African country to host the Organisation for Economic Cooperation and Development’s (OECD’s) Steel Committee Conference when the committee’s seventy-seventh session takes place in Cape Town between December 11 and 12. The...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.