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BP and the Singapore Petroleum
Company Limited (SPC) announced today (July 5, 2004) that they have reached
conditional agreement for SPC to purchase BP’s Retail and LPG Business in
Singapore retail network and related assets for USD $70 million.
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The network Retail Business
comprises 30 stations and the associated Business administration. The LPG
Business comprises BP’s 70% shareholding in BP Wearnes Gas Ltd.
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Subject to receiving the necessary
approvals and consents as well as possible pre-emption, the parties anticipate
completing the transaction near the end of 2004.
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The staff impact is limited to
around thirty posts. BP will do its best to minimise the impact but some
redundancies are expected.
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SPC recently acquired half of
BP’s one-third share of the Singapore Refining Company (SRC) 285,000 bpd
refinery taking their ownership to 50% of SRC, with the remaining 50%
one-third of the refinery being owned by Caltex.
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SPC has been a long time strategic
partner of BP in Singapore and we are pleased to have reached this agreement
with them which we believe is of mutual benefit. BP has been in Singapore for
40 years and we will definitely remain a key player.
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“Our BP Singapore office is a
key commercial and will transform itself into a regional knowledge hub in the
Asia Pacific region playing a strategic key strategic role in driving and
supporting BP’s wide sspectrum of activities including trading oil and
petrochemical products, lubricants, bunker and aviation fuels as well as
serving the region with functional support units such as tax, and legal, audit
and information technology. ” said Dr Wu Shen Kong, President of BP
Singapore.
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BP is one of the top five
companies in Singapore with an annual turnover of about USD7 billion last year
and expects its activities to grow in tandem with Singapore’s and the
region’s enhanced economic prospects.
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Whilst the sale to SPC is being
finalised, BP will continue its retail operations to operate its Business to
the with its usual highest operational and safety standards. BP and SPC will
share transition details with stakeholders concerned as soon as possible.
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“Meanwhile, we’d like to take
this opportunity to thank all our motoring customers and assure them of our
continued high quality customer services. Obviously, we would honour all
obligations, including the loyalty card points and benefits over the last 40
years. BP’s other lubricant products – BP and Castrol brands – will
continue to be available in the motor workshops.” says Mr Goh Pi Kuan, BP
Retail General Manager.
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Source: BP
Press Release 6 Jul 2004
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BP to sell its retail and LPG business to SPC
