In late May, BP announced a number of changes to its operations in Australia and New Zealand to build its fuels business across parts of regional Australia and better position its terminals business for long-term success.
There has been a series of changes in ownership of well-known fuel brands coupled with conversion of refining operations to distribution terminals. The landscape in downstream fuel operations is extremely competitive.
BP said that a new agreement to establish a joint venture has been signed with Lowes Petroleum to operate BP’s regional depot business, enabling growth across parts of regional Australia. This will result in exclusive distribution of BP fuels to customers in most of regional Queensland, NSW and Victoria by Lowes Petroleum.
BP, which has a large network of company owned and independent service stations, has also entered into agreements to appoint Great Southern Fuel Supplies to operate its regional depot and logistics businesses in Carnamah, Geraldton and Kewdale in WA, and with Toll to outsource logistics operations in Tasmania.
Separately, a new joint venture has been formed between BP, UGL Operations and Maintenance Pty Ltd to manage operations, capital and maintenance projects across BP’s terminal network in Australia. Australian Terminal Operations Management Pty Ltd will deliver safe, simplified and cost-efficient terminal operations. BP will continue to own these terminals, but management and operation of the terminals will be carried out by the joint venture.
“These changes to our business go beyond restoring our competitive edge,” BP Australasia President Andy Holmes said. “We are reinventing our business to be more responsive to our customers and become the most preferred fuels brand in Australia and New Zealand.
“They align with our strategy of growth in our fuels business and increased brand presence in key markets across Australia and will enable us to concentrate our investment in our fuels business to enhance our customer offer.”