BP recommits to refineries, pumps here

Peter Ker
February 11, 2014
The Age
Oil and gas major BP has dismissed speculation about its future in Australia, declaring that it wants to be a ”major player” in the local fuel market for the forseeable future.
Despite promising to sell $US10 billion worth of assets from its global portfolio over the next 22 months, BP ended months of speculation by saying it was ”fully committed” to its Australian petrol stations and refineries.
The pledge to continue in Australia is a rare piece of good news for the local manufacturing industry, which was rocked on Monday when multinational Toyota said it would cease manufacturing here in 2017.
The retail fuel sector has been under intense scrutiny in recent weeks since Shell said it had received expressions of interest from suitors for its Geelong refinery and parts of its marketing portfolio.
ExxonMobil also struck a deal with 7-Eleven in January to put the Mobil brand back on the service stations it sold three years ago, in a move that is partly designed to show the company is committed to the local downstream sector.
BP had been drawn into the speculation about the sector in recent weeks, but sought to put an end to the rumours on Monday.
”While BP does not usually comment on market rumour and speculation, the time is now right to dismiss the somewhat persistent claims that BP is considering the sale of its Australian downstream business,” said a spokesman for the company.
”BP intends to remain a major player within the domestic fuels market and the company remains fully committed to its business partners and customers.”
BP owns about 300 service stations in Australia, and has its branding on a further 1000 that are externally operated.
It has fuel refineries at Kwinana in Western Australia and Bulwer Island in Queensland, as well as a substantial presence in upstream oil and gas.
Ironically the commitment to its downstream division came as BP confirmed the divestment of six petrol stations in rural NSW to long-time business partner Westoil Petroleum.
BP would not disclose the transaction price, but said the deal would allow BP to continue to supply fuels and have branding on the service stations, but would transfer management to Westoil.
The deal is expected to be finalised mid-year and affected staff will be able to join Westoil.
BP’s commitment to its local downstream assets was welcomed by Colin Long from the Service Station Association.
”It’s a very good thing to hear that one of the oil majors is committed to the future of refining in particular,” he said.
Mr Long said it was particularly good news for the nation’s western half given that the refinery at Kwinana was the only big refinery not on the east coast.
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