CIRCLE THE WAGONS, CHAPS!

THE INDIANS are coming to Tanzania's downstream oil industry, so stand by to face some aggressive marketing. Gulf Africa Petroleum Corporation (Gapco) has been bought by Reliance Industries . Word is they got Gapco for a song. More to the point is that Reliance Industries operates the world's third largest refinery at Jamnagar. It is also India's largest exporter of petroleum products. Listen to what a Reliance executive has to say about the deal; "The acquisition of Gapco helps us strategically as we now get access to a large chunk of the African market. Gapco is present in the three east African countries of Kenya, Tanzania and Uganda. Besides, it also has three large storage tanks, which will help us trade fuel" . ( Deyar Nather of iPayipi, take note). Gapco's three storage terminals in Tanzania, Kenya and Uganda and its 250 retail outlets are the main attraction apparently. That, and the fact that fuel prices in Tanzania are not controlled by the Government. Looks to Spigot like the cozy post-colonial dominance of the East African petroleum industry by the oil majors is due to end sooner than anyone thought. Might be a good time to flog to Reliance all those pesky service stations and stick to supplying the region from coastal installations. Let them take on the health and safety risks. Oh, but hang on to the aircraft fuel business and continue flogging motor oil -- the margins are too good. At any rate, its a good time to circle the wagons.