Total completes sh1.44 trillion GAPCO buy out

International oil and gas company Total has finalized its acquisition of the Gulf Africa Petroleum Corporation's (GAPCO) assets in the East Africa region. 

According to Total Uganda's communication manager, Marvin Kagoro, the company now owns 100% stake and will begin rebranding in Uganda, Kenya and Tanzania with immediate effect. 

"The deal was closed on March 28th, with the principal assets being acquired being two logistics terminals in Mombasa, Kenya and Dar es Salaam, Tanzania, as well as a retail network of more than 100 service stations in the region," he said during a phone interview with New Vision. 

He said the acquisition will give Total a 28% market share in Uganda and about 36% market dominance in East Africa, placing them far above their closest rivals. 

Reliance Industries, a subsidiary of French based Reliance Exploration & Production, owned 76% of GAPCO, while Mauritius based Fortune Oil Corporation held the remaining shares. 

Kagoro said when combined with its existing operations in Kenya, Uganda and Tanzania, the new assets will strengthen Total's logistics in the region and significantly accelerate the growth of its retail network. 

"As elsewhere in Africa, where Total is the leading marketer, each station will become a community hub known for its closeness to all customers and meeting mobility and transportation needs," he said. 

Although Kagoro declined to reveal Total's investment in the new purchase, sources within Total told New Vision the cost is estimated at slightly above $400m (sh1.44trillion). 

Currently, Total operates approximately 125 fuel station across the country, and these are expected to shoot to 162 after the rebranding. 

According to logistics experts, Total and Shell control nearly 50% of Ugandan's retail fuel market distribution share, with GAPCO's acquisition set to elevate Total into the controlling seat.