Hydrocarbon Processing Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.



BP allots $2 billion for Australia downstream unit

08.22.2014  | 

The London-based company said it will spend about A$2.3 billion over the next five years on its downstream unit that also includes the Kwinana refinery in Perth.

Keywords:

By BEN SHARPLES
Bloomberg

BP, the operator of the biggest oil refinery in Australia, plans to spend A$10 billion ($9.3 billion) this decade expanding its filling station network and developing oil and gas projects such as the Browse venture.

The company will open a dozen new filling stations during the next 12 months while seeking to increase the fleet through acquisitions, Andy Holmes, the president of BP’s Australasia business, said in an interview. He declined to elaborate on potential takeover targets.

The London-based group will spend about A$2.3 billion over the next five years on its downstream unit that also includes the Kwinana refinery in Perth.

BP is seeking to expand its retail business even as it scales back refining in Australia while companies including Trafigura Beheer, the world’s third-largest independent oil trader, and Vitol Group gain a foothold in the industry. The company will also spend more than A$1 billion on a deep-water drilling campaign off the southern coast, Holmes said.

“The big opportunities we’re after is at the customer end of the business,” Holmes said at an Australian British Chamber of Commerce event in Melbourne today. “Filling stations, or truck stops, or motorway stations, that’s the area where we’re turning up our focus.”

The company owns about 330 of the 1,300 BP-branded filling stations in Australia. It will halt operations at its Bulwer Island refinery in Queensland by mid-2015 and may convert the facility into a fuel-import terminal amid competition from Asia.

Retail Business

Viva Energy, a unit of Vitol, will spend A$1 billion over the next five years after buying Royal Dutch Shell’s Geelong plant in Victoria and its 870-site retail business. Trafigura’s Puma Energy last year purchased two companies that will give it more than 200 pump stations in Australia.

BP also has an interest in fields that will feed the Chevron-operated Gorgon liquefied natural gas project, along with a stake in the North West Shelf Venture and the Browse LNG project. The company will start its deep-water drill campaign in the Great Australian Bight in 2016, Holmes said.

“We have ambitions to further grow our upstream presence,” Holmes said in a speech at the event. “We believe the Great Australian Bight can prove to be a new hydrocarbon basin. BP is also heavily invested in the development of the Browse gas resource.”

Woodside Petroleum, the operator of the Browse LNG project, scrapped a plan last year to build it onshore in Western Australia, estimating later it would have cost more than A$80 billion. Instead, the company plans to decide in mid-2015 whether to proceed with a plan to liquefy the gas on giant ships offshore, using Royal Dutch Shell technology.



Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Related articles

FEATURED EVENT


Sign-up for the Free Daily HP Enewsletter!

Boxscore Database

A searchable database of project activity in the global hydrocarbon processing industry

Poll

Should the US allow exports of crude oil? (At present, US companies can export refined products derived from crude but not the raw crude itself.)


64%

36%




View previous results

Popular Searches

Please read our Term and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2014 Hydrocarbon Processing. © 2014 Gulf Publishing Company.