Total to Buy Chevron Egypt Operations With Beltone Funds
The French oil company and Beltone Private Equity managed funds will acquire 66 service stations, two oil depots and aviation fuel operations at the Cairo and Marsa Alam airports, according to a joint e-mailed statement today. The deal is set to make Total Egypt the biggest marketing and services subsidiary of its parent company outside Europe.
The government is short of cash to pay $5.4 billion it owes to international oil companies, Oil Minister Sherif Ismail said last week, as the upheaval following the military’s July overthrow of president Mohamed Mursi scares away tourists and foreign investors. Total’s investment is the second in Egypt this year after buying Royal Dutch Shell (RDSA)’s retail and commercial fuel operations in May, according to the statement.
The purchase “is fully aligned with our strategy of growth in the Middle East,” Thomas Rebeyrol, managing director of Total Egypt, said in the statement. Once the Chevron and Shell deals are complete, Paris-based Total projects annual sales in Egypt of more than 3 million metric tons and a 14 percent share of the country’s service stations, according to the statement.
The value of the deal wasn’t disclosed.
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