LOCALLY owned oil company, Exor Petroleum (Exor), has secured US$2 million cash for working capital requirements from quasi-government Mozambican petroleum firm Petroleos de Mocambique (Petromoc) as part of a US$9,3 million deal that has seen the two companies form a joint venture, PetromocExor.
Under the Joint venture, Exor will retain majority shareholding of 51% shareholding while Petromoc gets the remaining 49%.
“The company is indigenised and approved by the Zimbabwe Investment Authority and Reserve Bank of Zimbabwe. Petromoc has 49% of the shareholding and Exor Petroeleum has 51%,” PetromocExor told businessdigest.
The new company said the US$2 million would go into rebranding, refurbishing and building new service stations and securing lines of credit for fuel.
Petromoxor said Exor’s contribution includes 14 operational service stations, four ready-to-build sites, four operational holding depots and one ready-to-build depot site as well as commercial tanks across the country.
PetromocExor said it has a stockholding capacity of five million litres.
Under the new company, priority would be given to refurbishment and rebranding of service stations with new sites set to be completed within 12 months, general manager Felizberto Guizemana said in a statement.
“We are already working on refurbishing the Sunningdale (Boshoff Drive) site and will move on to St Mary’s in Chitungwiza, Kamfinsa in Greendale, Bulawayo and later the Masvingo proposed project situated on the Harare to Beitbridge highway,” he said.
“We wish to maximise revenue earning through capacity utilisation of existing assets and grow the size of the distribution network by constructing new sites as well as expand the business into the remainder of the SADC region.”
Exor was owned by the late businessman John Makova who died in August last year.