Multinational company Vitol negotiates acquisition of Shell Cabo Verde

26 July 2010

Praia, Cape Verde, 26 July – Multinational company Vitol is negotiating the acquisition of 19 Shell subsidiaries in Africa, including its subsidiary in Cape Verde, Pan-African news agency Pana reported from Praia.

Last March Shell announced the sale of 21 subsidiaries in Africa, a decision that aimed to eliminate its less profitable businesses and focus capital on large projects that made it possible to increase the oil capacity of the Anglo-Dutch oil company in terms of storage and distribution of oil and natural gas.

According to the negotiations for the acquisition of Shell Cabo Verde, Vitol and its partner Helios Investment would become majority shareholders, but part of the company would remain in the hands of Shell.

Meanwhile, Shell Cabo Verde has given assurances that the sale of the subsidiary would not affect any of its commitments, including the creation of a single fuel logistics company, in partnership with state oil company Enacol and the Cape Verdean state.

The creation of a company that will exclusively deal with importing, storing and distribution of oil derivatives in cape Verde is a Cape Verdean government project that aims to eliminate additional costs in the sector and which have a direct impact on the final price of the products for consumers.

This process has been underway for a few years and the two oil companies operating in the Cape Verdean market (Shell and Enacol) have not yet managed to reach a final consensus with the government.

Throughout the 90 years it has been in cape Verde, Shell has always dominated the archipelago’s fuel market, but, last year, Enacol, which is part-owned by Angolan state oil company Sonangol and Portugal’s Galp Energia, took over market leadership with a share of 54.8 percent.

The Vitol group, which has been in Africa for over 40 years, is currently one of the most important operators in the fuel sector, dealing with over 5.5 million barrels of oil and its derivatives every day. (macauhub)