Total, headquartered in Paris, has been a Cepsa shareholder since 1990 and holds a 48.83 percent interest in Spains second-ranked petroleum company. This agreement has nothing to do with the shareholding conditions, Cepsa told Lube Report. Total is our major shareholder with 48.83 percent, and this is just a marketing agreement, so it will have no affect on the shareholding.

The new service station network, which will merge Totals 141 locations and Cepsas 161 locations, will be co-branded as Cepsa/Total. Under the agreement, Cepsa will – in addition to its own brands – sell the Total and Elf brands of lubricants and other petroleum products which had been marketed by Total. According to Cepsa, most of the lubricants involved are motor oils.

The deal will significantly enhance commercial offerings and logistical positions on the Iberian Peninsula, chiefly as a result of both the integration of Totals 141 retail sites in Portugal into Cepsas network of over 1,650 service stations and the strong position achieved in the asphalt and lubricant markets, Madrid-based Cepsa said.

According to Cepsa, the agreement will lead to a decline in operating costs, an optimization and streamlining of supply and logistics, and a more balanced commercial management in terms of geographical presence and sales channels.

Cepsa currently sells motor and other fuels, lubricants, LPG (butane and propane) and asphalt in Portugal, and has recently started distributing bunker and aviation fuels. It also owns supply and storage facilities, including a depot in Matosinhos, near Oporto.

According to LubesnGreases, Cepsa operates a base oil plant in Algeciras, Spain, that has 4,000 barrels per day of API Group I capacity.