The chairman of CIC Energy, Greg Kinross, said the Vitol Group acquired 9.9 percent of the company for $10 million.
At the just ended Botswana Resource Sector Conference, Kinross said Vitol, which was founded in the Netherlands 46 years ago was one of the leading energy traders in the world with specialities in crude oil, oil products, LPG, natural gas, power and coal, among others.
Vitol is one of the world’s largest charterers of crude oil and oil product tankers which makes a perfect partner for CIC Energy, which it was desperate to have.
The company controls 11 terminals on five continents. It has exploration and production business with interests in Ghana, Cameroon, Kazakhstan, Russia and Azerbaijan, as well as refining business, and coal mine in Canada.
Vitol and partner Helios, in a new vehicle known as Vivo Energy, which includes Shell as a minority partner, recently announced that they had acquired the majority of Shell’s shareholding in their businesses in Namibia and Botswana, subject to regulatory approvals.
The businesses in Namibia include 34 retail stations with another 44 in Botswana.
“On completion of the complete transaction Vivo will operate more than 1300 retail stations across Africa under the Shell brand and have access to around 1.2 million cubic metres of storage,” Kinross said.
Shell and Vivo will also produce Shell branded lubricants in seven countries. In January 2012, the Vitol announced the acquisition of a 35 percent interest in Matola Coal Terminal at Maputo from Grindrod Limited, the JSE listed integrated logistics services supplier. The Matola Coal Terminal provides access to international markets for the export of coal.
The Mozambique Ports and Railways and Transnet in South Africa have announced investment plans intended to increase rail capacity to the Matola Coal Terminal.
Vitol and Grindrod have announced that they would conduct a feasibility study for an expansion of capacity at the Matola Coal Terminal by 20 million tons per year.
CIC Energy says it will take advantage of a major power that shortage exists in the Southern African region.
Over and above Botswana’s own power station being constructed by BPC (Morupule B), an additional 300MW is needed from 2015-2016 and further 300MW by 2017-2018. South Africa has major shortages of capacity expected with approximately 45,000MW of new capacity required over next 18 years ÔÇô 2.500MW per annum on average, Kinross explained.
Kinross added that Mmamabula Energy Project is a 1,200 megawatt power station and the Project is developed as an export power project with electricity planned to be sold to South Africa.
An estimated US$3 billion capital equipment and infrastructure costs is envisaged.