South Africa’s energy sector can look forward to an investment of ZAR10 billion over the next five years.
This follows the completion of the merger between Engen and pan-African downstream petroleum company Vivo Energy, a subsidiary of Dutch energy giant Vitol.
Engineering News quoted Minister of Trade, Industry and Competition Ebrahim Patel as saying that the investment will cover green energy, infrastructure and upgrading operations across the country.
An additional ZAR4 billion has been earmarked for possible investment in biofuel production, depending on the outcome of feasibility studies.
The Department of Trade, Industry and Competition said Vitol had also agreed to R1 billion in new local procurement over the next five years
The company is also creating a new 5% employee share-ownership programme, resulting in Engen South Africa being 26% owned by historically disadvantaged citizens, according to IOL.
Vivo acquired its stake in Engen from Malaysian energy giant Petronas; in the deal, Phembani, Engen’s B-BBEE partner, will maintain its 21% holding.
Follow African Insider on Facebook, Twitter and Instagram
Picture: Pexels
For more African news, visit Africaninsider.com
Compiled by African Insider
