BP plans to sell its liquefied petroleum gas (LPG) bottles and tank filling operations in Portugal, UK, Austria, Poland, Netherlands, Belgium, Turkey, China and South Africa, as well as its non refinery-integrated wholesale business, the company said on Tuesday.
Also included in the sale are LPG storage terminals, bottle filling plants, customer lists, operating licenses and logistics assets.
The decision follows a review of BPs LPG portfolio last year, the company said.
As a result of the review, BP said it concluded it is not the natural owner long term of the LPG bottles and tank filling business.
The company says it believes business would offer greater opportunities for other companies, allowing BP to continue to focus its refining and marketing businesses.
BP intends to retain its autogas business in Europe and move it into the fuels value chain, it said, and maintain LPG wholesale outlets to support its refinery operations.
BP intends to remain a key player in the European LPG autogas sector and through the Fuels Value Chains we will have a strategic fit with our forecourt fuels offer, said Tufan Erginbilgic, chief operating officer for BPs refining and marketing segment.
We will also maintain LPG wholesale outlets where they support our refineries, he continued.
We believe that new owners will be able to build on these good assets, and market positions to grow the businesses further in the best interests of customers and, other stakeholders, including those who work in the business.
We want to develop world class fuels value chains with an integrated offer to our customers utilizing our market positions.
The LPG bottles and tank filling activities will continue to be managed as a global business until sold.
BP intends to sell the businesses as going concerns and expects significant market interest, it said.
The company expects to complete any deal by the end of 2013, subject to regulatory and other approvals.