Oil company Chevron South Africa has concluded the sale of its Empangeni fuel distribution depot, in KwaZulu-Natal, in line with its global optimisation strategy, to 100% black-owned fuel and lubricant supplier KZN Oils.
“KZN Oils has found an oil company that is committed to working with an emerging company to secure its competitive position in the South African market,” says KZN Oils CEO Rajen Reddy.
“Chevron plays an important role in our business by supplying us with a range of petroleum products, such as petrol, diesel and lubricants,” he says.
By acquiring the Empangeni depot, KZN Oils owns a key infrastructure in the liquid fuels supply chain. The acquisition of this bulk fuel storage depot increases its ability to compete in the KwaZulu-Natal coastal market.
“KZN Oils sees Chevron as a strategic partner in its quest to be the leading nonrefining petroleum company in South Africa,” he says.
Chevron South Africa chairperson James Seutloadi says that forming the partnership with KZN Oils was in line with the strategic direction of both companies.
“KZN Oils has been distributing for Chevron for over eight years. We are pleased to be able to contribute to the growth of this black economic-empowerment company,” he says.
KZN Oils will take over all assets and operations associated with the depot.