VENTURES AFRICA – South African petrochemical group Sasol Oil signed a joint venture agreement with BP South Africa on Monday, making both companies joint owners of the Alrode fuel depot in Alberton and the Waltloo depot in Pretoria.
Under the agreement that has been approved by South Africa’s Competition Commission, Sasol and BP now have equal access to the depots which has been described as being of logistical benefits to both companies; expectations are high over an anticipated improvement in the companies’ access to their respective customers.
Before the deal was sealed, both companies held each depot exclusively – Sasol owned Alrode depot while BP owned Waltloo. But under the new agreement, Sasol and BP now have 50 percent interest in each of the two fuel facilities.
Facilities at the depots include storage tank farm, offices, petrol, diesel and additive storage tanks, road and rail gantries and a workshop. The Waltloo depot also has access to the Transnet pipeline.
“Ensuring security of supply in the areas we operate in is of utmost importance to us and entering into a partnership such as this helps us to achieve this strategic intent,” BP Southern Africa CEO Gerard Derbesy said on Friday.
The deal would ensure safe and quick distribution of products to customers.