The deal is expected to be completed during the third quarter of 2013, subject to completion of all the required legal and regulatory approvals.
BP supplies a wide range of industrial, commercial and domestic customers in South Africa, with annual sales of nearly 40 000 tonnes of bulk, cylinder and aerosol LPG. The Masana LPG business serves large, commercial and industrial consumers, with annual sales of 20 000 tonnes of bulk LPG.
More than 45 employees, based in Joburg, Cape Town, Pretoria and Durban will transfer to Oryx Energies' local affiliate, Oryx Oil South Africa, on deal completion under Section 197 of the Labour Relations Act.
The sale of the businesses follows BP's global announcement last year of its intent to sell its LPG bottles and bulk business, as well as some of its wholesale LPG activities, in the UK, Portugal, Austria, Poland, The Netherlands, Belgium, Turkey, China and South Africa.
Oryx Energies is wholly owned by the private group AOG, and is one of Africa's largest and longest-established independent providers of oil and gas products and services. It has been operating in South Africa since 2002.
Gerard Derbesy, BP's head of country, South Africa said: "We are pleased to have reached an agreement with Oryx Energies, given their depth of experience in the LPG sector and their commitment to the transformation agenda in South Africa. We believe that Oryx Energies will be able to build on the excellent LPG business that we have developed and successfully grow it further in the best interests of customers and other stakeholders. Outside of the LPG sector, BP continues to invest in and grow its remaining businesses in South Africa including the SAPREF refinery joint venture in Durban. We have also recently made a substantive investment in our retail network and logistics assets and continue to invest in these areas."
Jean Claude Gandur, chairman of AOG, commented: "We are delighted that Oryx Energies has been selected as the preferred buyer of this major LPG business in South Africa. This is an important step in the roll-out of our regional LPG strategy and we are looking forward to welcoming all the BP and Masana LPG employees into the Oryx Energies family. We are committed to maintaining the first-class service of this business to its customers and we will invest strongly to meet the future growth in energy demand across the South African economy."
Godfrey Rajool, head of BP Gas South Africa said: "We are excited about working with Oryx Energies as our new owner. Oryx Energies has an established track record of success in Africa spanning over 25 years; their strategy will allow our business to grow and, importantly, our motivated and highly qualified people will continue being an integral part of this business."
Abhay Raichoora, Masana Petroleum Solutions' MD said: "This deal signifies an exciting milestone for Masana and Oryx Energies, and will allow our customers to continue to enjoy high levels of service, product quality, and benefit from a renewed focus on growth."
