The Gulf News, a Dubai-based newspaper, is reporting that Gulf Oil Middle East Limited, a wholly owned subsidiary of Gulf Oil International, is in talks to acquire at least one blending plant and launch a series of joint ventures in Africa, according to a senior company executive.
Camille Nehme, group vice-president operations and business development at Gulf Oil International, told Gulf News in Dubai this past Saturday the company wants to launch its own African operations. It currently operates in the continent through a series of licensee and franchise agreements. Its time to enter Africa, he said, we are very bullish.
Nehme estimates Gulf Oil Middle East will spend around US$20 to $35 million establishing its own operations in Africa, which includes acquiring a number of blending plants and a heavy marketing campaign. He said the source of funds [is] not an issue with Gulf Oil Middle East and Gulf Oil International both likely to tap banks and group funding. Nehme did not mention which banks.
Egypt, Morocco, Tanzania, South Africa and Nigeria were identified by Nehme as major growth markets, however, he declined to state in which countries the talks for joint ventures and acquisitions are taking place.
The African expansion will allow Gulf Oil to conduct its own sales with its own team, Nehme said.
Gulf Oil Middle East has its own operations in the UAE, sponsored operations in Oman, Bahrain, Qatar and Kuwait and distributors in other Middle Eastern countries, according to its website. In Africa, it exports to Tanzania, Uganda, Congo, Kenya, Ivory Coast (Côte d'Ivoire), Benin, Sierra Leone, South Africa and Morocco.
Gulf Oil Middle East is also looking favourably to re-establishing its business in Iran with plans to launch a joint-venture if sanctions are lifted later this year.
Gulf Oil Middle East, a Gulf Oil International Group company, is part of the $18 billion Hinduja Group. Today, Gulf Oil International markets lubricants under the Gulf brand in more than 100 countries across five continents.
