TotalEnergies to Sell 120 Ethiopian Fuel Stations to OLA Energy as Downstream Sector Reshapes
TotalEnergies is preparing to exit Ethiopia’s fuel retail market through the planned sale of its network of approximately 120 service stations to OLA Energy, a pan-African downstream operator formerly known as OiLibya.
The agreement, which has not yet been publicly confirmed by either company, would transfer one of Ethiopia’s most established international fuel retail networks to OLA Energy. The financial terms of the transaction have not been disclosed.
TotalEnergies has operated in Ethiopia since 1950 and built a significant retail presence in the country. Depending on reporting sources, its network ranges between roughly 120 and 140 service stations offering fuel distribution alongside vehicle maintenance services, car wash facilities, convenience retail, and food services.
OLA Energy is already a major player in Ethiopia’s downstream petroleum sector and operates extensively across Africa, with more than 1,000 service stations and a growing portfolio of convenience and hospitality outlets.
The acquisition would further strengthen its position in Ethiopia’s fuel distribution market.
Consolidation in Ethiopia’s fuel retail sector
If completed, the transaction would reinforce a downstream structure dominated by a small number of major operators, including National Oil Ethiopia, OLA Energy, TotalEnergies, and Yetebaberut.
Ethiopia’s fuel retail industry has become increasingly complex due to rising import costs, periodic price adjustments, and tighter regulatory controls on distribution systems and digital payment mechanisms.
These pressures have affected margins and contributed to a more competitive operating environment for fuel marketers.
Strategic realignment by TotalEnergies
The reported divestment aligns with TotalEnergies’ broader global strategy of optimising its retail portfolio. In recent years, the company has exited or reduced its presence in fuel retail operations in several markets, including Brazil, Pakistan, and parts of Europe.
The strategy reflects a shift toward focusing investment in markets where the company holds stronger competitive positions or higher-margin opportunities across its integrated energy portfolio.
Implications for Ethiopia’s downstream market
If approved by regulators, the transaction would mark another stage in the gradual consolidation of Africa’s fuel retail sector, where pan-African and regional operators are increasingly taking over assets previously held by international oil majors.
For Ethiopia, where fuel imports and distribution are closely linked to economic activity, infrastructure development, and regulatory reform, changes in ownership of retail networks carry broader implications beyond commercial restructuring.
The deal remains subject to regulatory approval and final confirmation by the companies involved.
