TotalFinaElf Acquires Interests in Zambia

TotalFinaElf has acquired the refining and marketing assets of Agip Zambia, an Agip (ENI group) subsidiary, as part of the process of consolidating its position in Africa. The transaction is subject to the approval of the Zambian Authorities.

Through this transaction, TotalFinaElf has acquired a 50% interest in the Indeni refinery in Ndola, in the north-central region of the country. The government will retain for the time being the remaining 50%. TotalFinaElf will provide technical support for the 20,000-barrel-per-day refinery.

The marketing assets covered by the agreement consist of 20 service stations, a motor fuel depot with a capacity of 2,240 cubic meters in Lusaka and a 10.5% interest in the Lublend lubricant plant in Ndola, in which the Group already owns a 10.5% interest.

The acquisition marks TotalFinaElf's first foray into the Zambian refining industry and consolidates the Group's marketing position. The Total-branded network will be expanded to 50 retail outlets, for a market share of pproximately 15%, with an important potential growth of the sales.

TotalFinaElf operates in 40 African countries, in which it markets around ten million metric tons per year of petroleum products. Following the latest agreement, the Group now has interests in seven African refineries with an aggregate capacity of 290,000 barrels per day.