Page 13 - DMEA Week 37 2021

DMEA NEWS IN BRIEF DMEA

COMPANIES Middle East & Africa - Fuels & Lubricants. logistics platform spans road and maritime
“Both parties worked through the pandemic transportation, specialized warehousing, fuel
Caltex signs East African to deliver the agreement, reflecting an farms, commercial aviation refuelling and fuel
enhanced relationship based on trust, integrity supply operations.
deal and performance.” quality lubricants as per Chevron’s standards
AML is committed to manufacture high
The success of this license agreement and
Chevron Brands International LLC (Chevron) the growing demand for lubricants in the and is committed to service customer
and AFAL Manufacturing Limited (AML) of region were major factors in building further requirements and the ever-expanding East
the Tristar Group have signed a long-term the relationship between the Tristar Group African market expectations.
license agreement encompassing production, and Chevron, and will realize entry into With this strategic relationship, Chevron
distribution, and marketing of CaltexTM Tanzania as a new market for AML. and the Tristar Group are investing more
lubricants in Kenya, Uganda, Tanzania, This long-term strategic relationship is towards meeting an ever-growing demand for
Rwanda, Burundi and Democratic Republic an indication of Chevron’s commitment and Caltex branded lubricants, which cover the
of the Congo (DRC). With the signing of this assurance to customers in the East Africa consumer, commercial and industrial sectors
agreement, Chevron has strengthened its markets to make available quality products across the East African region.
already growing presence in East Africa and and to contribute towards the economic CHEVRON
entrusted its operations to AML as a licensee. development of the region through the
Caltex branded lubricants have been partnership of both Chevron and AML in the
available in East African countries since East Africa lubricants market. REFINING
2013 through a distributor agreement with AML is confident that this move will
Africa Fuels & Lubricants Ltd (AFAL), also enable the Caltex brand to gain larger market Nigeria’s Dangote in talks
of the Tristar Group. The mutual trust and share in East Africa by capitalizing on cost
satisfaction from this successful collaboration benefits and synergies of local blending. with traders for oil refinery
was a major factor in the realization of the “Being selected by Chevron for this
long-term license agreement. Under the new significant responsibility is a major show loan
scope, Chevron will provide its world leading of confidence in the long term relationship
technology, and AML will blend, market, and between Chevron and the Tristar Group Africa’s richest man Aliko Dangote is in talks
distribute Caltex branded lubricants through since AFAL was first awarded a lubricants with some of the world’s biggest oil traders to
its extensive network. The relationship seeks distributor agreement by Chevron in 2013, help finance his mega refinery project outside
to leverage the synergy of Caltex’s strong and will serve as a launch pad for Caltex of Nigeria’s commercial centre Lagos, sources
brand strength and AML’s extensive market branded lubricants to expand sales in the East with knowledge of the matter said, although
reach to successfully carve out a share in the African region. We are confident that local his company denied the discussions.
competitive East Africa lubricants market. blending is a move in the right direction for The 650,000 barrel-per-day refinery, once
“Chevron has a history in East Africa this business to remain competitive, and we complete, will be the continent’s largest plant
spanning seven decades and we have will spare no effort to strengthen the position and redraw major trade flows of crude and
collaborated with AFAL since 2013. Over of the Caltex brand in East Africa,” said Mr. fuel in the Atlantic basin.
the last eight years, our relationship with Eugene Mayne, Tristar Group CEO. Nigeria’s Dangote in talks with traders for
AFAL has grown from strength to strength Tristar is a global business, headquartered oil refinery loan
and we are excited to begin a new chapter in Dubai, which offers end-to-end fuel Despite being Africa’s biggest oil producer
with AML, which will take the Caltex brand logistics solutions to blue-chip clients and exporter, the country depends almost
across Eastern Africa. This new agreement including international and national entirely on fuel imports after allowing its
also includes lubricants blending options for oil companies and intergovernmental significant refining capacity, 445,000 barrels-
future expansion,” said Douglas Rankine, GM organizations. Its integrated energy per-day, to become dilapidated over several

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