Industry

The combined Vivo Energy Group now has more than 3,900 service stations. (Image source: Engen)

Engen becomes part of Vivo Energy as the latter acquired 74% Engen share from PETRONAS

The transaction which began in February last year, came to a close with the securing of regulatory approvals and fulfilment of conditions precedent across the seven markets where Engen operates. 

With B-BBEE shareholder Phembani Group continuing to hold 21% interests in Engen, and expansion of another 5% employee share ownership programme for historically disadvantaged persons, the new strategic partnership results in pan-African energy championship. “Having been invested in Engen since 1999, we are excited to continue our involvement, partnering in a strategic relationship with Vivo Energy in the next phase of Engen’s growth as a key player in South Africa’s economy,” said Phuthuma Nhleko, chairman and co-founder of Phembani Group.

The combined Vivo Energy Group now has more than 3,900 service stations, and beyond 2 billion litres of storage capacity across 28 African markets. Business will go on as usual with the objective of delivering added value and benefits for customers and stakeholders.

Growing operations in South Africa

In a joint statement, Stan Mittelman, CEO of the Vivo Energy Group, and Seelan Naidoo, managing director and CEO of Engen, said, “We are delighted to conclude the transaction, and will now work together to take the ‘best of both’ from Engen and Vivo Energy, positioning the combined organisation well for growth and success in the years to come.”

Mittelman and Naidoo said, “As part of the transaction, Vivo Energy has committed to invest a significant amount of capital expenditure to maintain and grow Engen’s operations in South Africa, ensuring a modern and efficient business, for the benefit of the South African population. We have also committed to major investments in renewable solar power generation projects to help transform the economy, while supporting a just energy transition for the country.”

Chris Bake, chairman of Vivo Energy, said, “I would like to thank PETRONAS for its stewardship of Engen over the last 25+ years. Together with the Phembani Group, they have grown Engen into a valuable corporate citizen. The combination of Vivo Energy and Engen to create a pan-African champion not only benefits customers in South Africa and across the continent, but also sets up the new Group to achieve its vision to be Africa’s leading and most respected energy business.”

Following submissions, a competitive bidding process will lead to the selection of preferred and alternative suppliers. (Image source: African Energy Chamber)

Halliburton is inviting local companies to submit an expression of interest (EOI) for the supply of goods and services across the oil and gas industry, and African service providers are not missing the opportunity

The EOI has several categories supporting oil and gas operations, such as machine repair and operation tools; oil, lubricants and tyers; lifting materials and accessories; welding and fabrication; calibration, certification and fuel, to mention a few. 

Following submissions, a competitive bidding process will lead to the selection of preferred and alternative suppliers. 

Besides advancing local interests and capabilities, the initiative strengthens supplier diversity as well, contributing to economic growth and market expansion.

Strong presence in Africa

Halliburton has a strong presence in Africa.

In Namibia, Halliburton won a deepwater multi-well construction contract in 2024 for Block 2914AHalliburton won a deepwater multi-well construction contract in 2024 for Block 2914A, which entails the construction of exploration and appraisal wells from Q4, 2024.

In March 2023, Halliburton won a US$1.4bn contract with Honeywell to develop oilfields and refinery for the Libyan National Oil Corporation.

Halliburton secured nine contracts by Woodside Energy for offshore oil and gas activities in Senegal, where the Sangomar Oilfield Development is all set to start production in the coming weeks.

In Nigeria, Halliburton won a US$300mn deal with Shell Petroleum Development Company of Nigeria for a large-scale offshore gas project.

“While various countries have already implemented local content policies that support local participation in oil and gas developments, many nascent producers have yet to establish the relevant local content regulation. Yet, companies such as Halliburton are proving that international service providers, project developers and investors can do a lot without a local content law. Halliburton is not only giving opportunities to local companies but is laying the foundation for a vibrant oil and gas landscape in Africa,” said NJ Ayuk, executive chairman of the African Energy Chamber.

The latest appointments are in line with company strategy, as the group expands its operational footprint in the African E&P sector. (Image source: Adobe Stock)

Africa-focused oil & gas production, development and exploration group, Tende Energy, has undergone a management reshuffle with the appointment of Mark Henderson as the chief executive officer of Tende Energy North Africa 

Henderson has been associated with Tende Energy since 18 December 2017, when he was working as a chief financial officer in the company. 

He will be stepping down from the board to focus on the company’s North African operations, where he has been leading a Tunisian team to build its onshore activities. Over the last six months, he and his team are also working to tap into the potential of offshore operations in the region. Tende Energy has set an example in the Tunisian upstream by introducing an exclusively Tunisian crew and support team. 

Besides concentrating on the assets in Tunisia that were acquired last year, Henderson will continue to work on the Anglo Tunisian Oil and Gas business as well. 

His previous position as the chief financial officer will be taken over by John McMurtrie, who brings in more than 20 years of experience in the E&P sector.

Previously, as a CFO with the UK-based Cornerstone Resources Group, McMurtrie worked on the execution of the Petrogas farm-in to the Abbey development and Baker exploration prospects in the Southern North Sea.

Advancing asset transactions in Angola

Jack Pryde, chairman, Tende Energy, said, “The latest appointments are in line with our strategy, as the group expands its operational footprint in the African E&P sector. Mark and his team will continue to achieve further critical mass with the group’s onshore and offshore assets in Tunisia, building on the achievements since taking control in Summer 2023. John brings additional sector experience to our management team, having worked at senior financial management level in the listed E&P sector for the last decade. He is experienced in asset and company farm-in/out transactions. This will come to the fore as we get closer to completing our asset transactions in Angola and move onto the listing of the company’s shares on the London stock market.”

Ahmed El-Hoshy, CEO of Fertiglobe. (Image source: Fertiglobe)

Fertiglobe, the seaborne exporter of urea and ammonia, and nitrogen fertiliser producer from the Middle East and North Africa region, reported Q1 2024 revenue of US$552mn, adjusted EBITDA of US$223mn, and adjusted net profit of US$119mn

In Q1 2024, ammonia prices retreated from their levels in Q4 2024 on easing supply disruptions and lower gas prices compared to the previous quarter, while urea prices were impacted by mixed trends due to favourable weather incentivising demand in North America coinciding with delayed planting in Europe, as well as lower-than-expected tender uptake in India, partially offset by healthy demand in other key regions including Brazil and Australia.

Ahmed El-Hoshy, CEO of Fertiglobe, commented, “We are pleased to report a strong quarter, marked by a 5% year-on-year increase in our own-produced sales volumes, driven by higher production and lower ending inventories, which led to a 22% and 1% increase in ammonia and urea own-produced sales volumes, respectively. This demonstrates continued efforts by our manufacturing and commercial teams to prioritise our key strategic objectives, paving the way for further operational milestones over the course of the year, by capitalising on our robust in-house capabilities and logistics footprint. It is worth noting that these results were delivered in an environment of market volatility and softer prices in Q1, on lower crop and energy prices as well as reduced imports from India and Europe, coupled with an improved supply situation with recent curtailments being reversed.

"Fertiglobe has continued to make good progress on its cost optimisation programme, having achieved 60% of its US$50mn run rate target implemented by the end of March 2024, and remains on track to realise the full target by the end of 2024. In addition, there is potential to generate at least US$100mn in incremental annual EBITDA by the end of 2025 compared to 2023, driven by improved production and energy efficiency within its ongoing manufacturing improvement plan (MIP). Together, these two initiatives have potential to generate US$150mn of incremental EBITDA by the end of 2025, representing an approximately 15% increase compared to 2023.

"These initiatives bolster Fertiglobe's cash flow generation across cycles, supporting the company’s already healthy free cash flow conversion and robust balance sheet, and enabling Fertiglobe to balance growth spending on value accretive projects and dividend payments.

"In addition, Fertiglobe remains firmly focused on technology, innovation and digitalisation, and is investing in the integration of Artificial Intelligence (AI) throughout its operations to unlock value, enhance efficiencies, and reduce emissions. The company is harnessing data integration and predictive analytics applications to support business objectives by improving the performance of equipment, processes, and facilities, while also implementing AI-powered analytics at its sites to enhance safety and reliability.

“I would like to extend my sincere appreciation to our exceptional team, whose dedication has been instrumental in our achievements. Their unwavering commitment to safety and excellence has been pivotal in our transformation into a leading global enterprise, which is about to embark on an exciting new chapter of growth and value creation following ADNOC’s acquisition of OCI's 50% equity stake, which will take ADNOC's ownership to a majority 86.2%. Together, we have immense confidence in Fertiglobe's ability to continue passing milestones and setting new standards for our industry.”