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Oryx buys BP’s LPG businesses in SA

20th March 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Addax & Oryx Group (AOG) subsidiary Oryx Energies has agreed to buy the South African liquefied petroleum gas (LPG) distribution businesses of BP and its 45%-owned Masana Petroleum Solutions subsidiary for an undisclosed amount.

This followed privately owned AOG’s announcement in February that it planned to invest $400-million in Africa's energy sector over the next five years, with the aim of becoming a significant player in the downstream sector in the region.

The company aimed to build more infrastructure in Africa and develop specialities such as bitumen and LPG.

“This is an important step in the roll-out of our regional LPG strategy,” AOG chairperson Jean Claude Gandur said on Wednesday.

BP last year announced its intention to sell its LPG bottles and bulk business, in addition to part of its wholesale LPG activities in the UK, Portugal, Austria, Poland, the Netherlands, Belgium, Turkey, China and South Africa.

“We are pleased to have reached an agreement with Oryx Energies, given their depth of experience in the LPG sector and their commitment to the transformation agenda in South Africa,” commented BP South Africa head Gerard Derbesy.

BP supplies a range of industrial, commercial and domestic customers in South Africa, with sales of nearly 40 000 t/y of bulk, cylinder and aerosol LPG.

Masana LPG serves large, commercial and industrial consumers, with sales of 20 000 t/y of bulk LPG.

Oryx Energies, which planned to conclude the deal by the third quarter of the year, would absorb over 45 employees in Johannesburg, Cape Town, Pretoria and Durban through Oryx Oil South Africa.

The deal was subject to the required legal and regulatory approvals.

BP pointed out that, outside of the LPG sector, the company would continue to invest in and grow its remaining businesses in South Africa, including the Sapref refinery joint venture, in Durban.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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