Belgian Invasion

Across nine states, from Texas to Iowa, some 1,300 gas stations in the next few weeks will break out in a bright new color scheme--the shiny blue-and-white gas pumps of a bustling Belgian-born newcomer, American Petrofina. The first major foreign investor in U.S. oil since Shell, Petrofina has grown from only a plan on paper to $100 million in assets in less than two years, now feels strong enough to put its own "Fina" brand name on the gas stations it has picked up.

This week it closed the third major deal of its move into U.S. oil with the purchase of the oil holdings of Floyd Odium's Atlas Corp., for about $20 million, in a cash and stock swap. This deal runs its oil reserves up to 40 million bbl., gas to 275 billion cu. ft., crude production to 10,000 bbl. a day, and refinery capacity to 50,000 bbl. a day.

American Petrofina is expanding at a time when the petroleum industry is in a general slump. Says President Harry Jackson: "A great time--when everybody is down in the doldrums."

Operation in the doldrums is nothing new to Petrofina (full name: Compagnie Financiere Beige des Petroles). Says Managing Director Laurent Wolters in Brussels: "We consider that the time to buy is when things are bad, because you can get them at a reasonable price. Industry-wise, the situation is dreadful, but our situation is good." On a global level, the policy has worked well. Stripped of almost everything but its name after World War II, when the Communists nationalized its Rumanian oilfields, Petrofina swapped its license to refine in France with British Petroleum for a guaranteed supply of crude, revitalized affiliates, merged, swapped and bought outright until it has now expanded into 63 affiliates in 23 countries, selling some 150,000 bbl. of oil a day.

Petrofina came into the U.S. by way of Canada. There, in 1950, it set up a production company, and in 1953 established Canadian Petrofina, which rapidly ran its assets up to more than $150 million, fully integrated from undeveloped leases to new gas stations (TIME, July 9, 1956), moved into fourth place (behind Imperial, British American and Shell) among Canada's gas and oil distributors.

In 1956 it set up a U.S. affiliate. With initial capitalization of $38 million, chiefly from U.S. investors, American Petrofina, which is controlled by the Belgian parent company through its control of the board of directors, bought control of Texas' Panhandle Oil for $25 million in 1956, and in 1957 picked up Texas' American Liberty Oil Co. for about $32 million.

But while the buying has been spectacular, earnings have been moderate; 1957 will show a net of $1.5 million on a gross of $45 million, and U.S. oilmen are watching the bumptious newcomer with some skepticism. But confident Harry Jackson, a veteran of 34 years with Tidewater and manager of its Eastern division when Petrofina hired him in 1956, plans to continue expanding.

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