France’s Total to Buy Chevron’s Egypt Retail Network

French oil major Total (TOTF.PA) said it had agreed to buy the Egyptian retail network of U.S. energy company Chevron (CVX.N), in a move it said would create its biggest marketing and services subsidiary outside Europe.

Total said the Chevron network has annual sales of more than 1.4 million metric tons and includes 66 service stations, two oil depots and the aviation fuel operations at Cairo and Marsa Alam airports.

It bought the assets jointly with Egyptian partners Beltone Capital and Beltone Private Equity (BPE) Energy.

The purchase is subject to approval by the relevant authorities, Total said in a statement. It did not give a value for the deal.

Chevron had been seeking to sell its Egyptian and Pakistani downstream assets to raise $300 million for the second-largest U.S. oil company, sources told Reuters in May.

Total already agreed in May to buy the Egyptian retail assets of Royal Dutch Shell (RDSa.L).

Once the Shell and Chevron purchases close, the annual sales of its local subsidiary Total Egypt will exceed 3 million metric tons through 218 service stations, giving it a 14 percent share of the market, Total said.

The service stations will also distribute lubricants provided by a blending plant owned jointly by Total Egypt and OilLibya.

Source: Reuters