(Ecofin Agency) – The French oil firm is pursuing a policy in the Egyptian downstream segment aimed at supporting the development of its activities. It operates around 7% of the service stations there.
In Egypt, the French oil company TotalEnergies announced on Friday 29 July that it had initialed a contract worth 200 million dollars to sell to the Emirati oil company ADNOC, 50% of the interests it holds in the Egyptian downstream segment.
“TotalEnergies is delighted to join forces with ADNOC Distribution in Egypt. The vast experience of an experienced fuels distributor in the Gulf Cooperation Council region will add significant value to our subsidiary in Egypt,” said Thierry Pflimlin, General Manager Marketing & Services at TotalEnergies.
As part of this deal, ADNOC will work with TotalEnergies to distribute petroleum products in the country. An agreement that covers, on the one hand, a set of assets comprising a total of 240 service stations.
On the other hand, the agreement includes several wholesale petroleum product marketing operations. Fuels including automotive fuel, aviation fuel and lubricants.
According to Bader Saeed Al Lamki, CEO of ADNOC Distribution, the transaction is in line with the expansion strategy of the Emirati firm which aims to play a greater role in the distribution of petroleum products in the MENA region.
The closing of the transaction is announced for the first half of 2023, once the legal approvals have been obtained.
Abdel-Latif Boureima