Swaziland: Galp Energia Expands Its Presence (update)

Galp Energia has taken over Shell fuel distribution in Swaziland.

The Retail Manager for Galp Energia (Swaziland) Fannie Mthethwa in a statement confirmed the deal adding that they had even taken occupation of the Shell premises at Matsapha. Galp Energia’s deal with Shell also includes the  operations in Mozambique and the Gambia.

Mr Mthethwa stated that after the deal was clinched, Shell terminated contracts with its initial employees who were also given an option to apply for re-employment with the new company, as according to Section 33 of the country’s employment Act.
“Some of the employees opted to join Galp Energia while others sought greener pastures elsewhere. Those who opted to remain had to re-apply as they were being employed as from day one. “I can say as of now all of us are still in probation while the new company completes the transition phase and settles down.” he said.

The deal for all three countries is worth US$55 million, and fits Galp Energia’s strategy of increasing its presence in Africa capitalising on the good African relationship the company has maintained in exploration and production activities, while also opening the door to possible future partnerships in bio-fuels.  According to reports, this acquisition will allow a 45 percent increase on the volumes sold in the African downstream and will raise Galp Energia’s geographical diversification in the continent, while developing its business on the Mozambique-Swaziland- Cape Verde-Guinea Bissau-Gambia axis.

Galp Enregia’s regional focus in Africa also includes a third area being developed in Angola. On completion, as this is a sale of shares, all contractual and commercial terms of the companies, as well as existing employment contracts, will remain valid and the business will continue under new leadership.

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