Galp Energia has signed an agreement to buy Royal Dutch Shell fuel businesses in Mozambique, Swaziland and Gambia, for a total amount of 55 million dollars. This acquisition fits Galp Energia’s strategy of increasing presence in Africa capitalizing on the good African relations Galp Energia maintains in exploration and production activities and opening the door to future partnerships in biofuels.
This acquisition will allow a 45% increase on the volumes sold in African downstream, raising geographical diversification in that continent, with market shares between 15% and 40%, and to develop its businesses on the Mozambique - Swaziland and Cap-Verde - Guinea-Bissau - Gambia axis. Galp Energia’s regional focus in Africa also includes a third area being developed through Angola. On completion, as this is sale of shares, all contractual and commercial terms of the companies, as well as existing employment contracts, will remain valid and the business will continue under new ownership.
The transaction remains subject to approval of the relevant authorities.
Galp Energia currently markets oil products in Africa, namely in Angola, Cape Verde, Guinea-Bissau and Mozambique. In 2007 international sales grew 38%, with a total of 369 thousand m3 being sold across retail, wholesale, LPG and lubricants. The contribution to profit kept the favourable trend of recent years.