In one corner, there is the soon-to-merge Sasol and the Malaysian-controlled Engen. When they come together later this year after winning government approval, the combined entity will speak for around 33% of the South African gasoline market.

In the other corner are the four companies we are supposed to feel sorry for because of the creation of this “mega” corporation; Shell, BP, Caltex and Total.

Slugcatcher says “supposed” because it is awfully difficult to ever feel sorry for companies which, just about anywhere else in the world, dominate the oil game.

In South Africa, however, the worm has turned and reports reaching the outside world indicate these four ugly sisters of world oil are very unhappy about the Sasol/Engen merger.

According to one report in the latest Petroleum Intelligence Weekly there are cries of “foul” coming up from Shell, BP, Caltex and Total.

The claim is that the new entity will dominate the South Africa market, and from there spread its influence across much of southern Africa.

In one of the more interesting claims, BP is said to be arguing that Sasol/Engen will have “enough market influence to stifle competition”.

It was after reading that claim in PIW that The Slug had to reach for a soothing glass of Glenfiddich, before sitting down and re-reading the claim. Yep, there it was in black and white – BP is claiming “stifled competition”.

Before absorbing this allegation in detail, The Slug pondered the irony, the absolutely huge irony, of a mega-oil company like BP playing the game of the oppressed, small, oil producer.

How many countries are there around the world where exactly the same charge is laid against big oil?

How many small wholesalers and retailers of fuel have had the breath crushed out of them by big oil?

But, here it was. The big boys of world oil crying foul because South Africa’s home grown coal-to-oil producer in Sasol, and a division of Malaysia’s Petronas, were getting together to achieve the economies of scale which comes from a merger.

The core of the BP complaint seems to be that Sasol and Engen will have refining capacity inland, and on the coast. There is Sasol’s namesake coal-based operation near the delightfully-named Sasolburg, and coastal refining capacity near Durban where Sasol has a 70% stake in the Natref refinery and Engen owns the Enref refinery.

By joining the two businesses together, BP claims it will face a competitor who has an 87% stake of the inland refining capacity and 40% of the entire national retail products market.

As a famous army sergeant-major in a British TV comedy program once said: “Oh dear, how sad, never mind”

BP, however, does not see the humour in the situation. It is on the attack, with one of its spokesman uttering these immortal words:

“This deal will create a petroleum giant, which could lock out existing competitors, and preclude new entry by black empowerment players.”

Yes, dear reader, that is the man from BP playing the deeply hurt small refiner, going in to bat for the rest of the small economy, and potential future black investors.

Why is it that The Slug, even after his Glenfiddich, can’t wipe this enormous smile off his face? Perhaps it’s because the rest of world shares the joke and only the bosses at BP, Shell, Caltex and Total fail to see how silly they sound after decades of ruthlessly crushing small opponents.

Ah! Isn’t it delightful when the biter is bit!