LONDON (Alliance News) - BP PLC Tuesday announced a number of changes to its business 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".
UGL Ltd, an engineering service company listed on the Australian Securities Exchange, said Tuesday it had been awarded a new three year contract by BP Australia, part of BP PLC, to operate and maintain 17 BP fuel terminals across Australia through a joint venture between the two companies.
BP will pay UGL USD190 million over the initial three-year contract, which includes the option to extend the contract for a further three years on an ongoing basis, said UGL.
Through the joint venture, in which both companies will hold a 50% stake each, UGL is contracted to perform all engineering, maintenance and project works for BP?s Australian fuel terminal network, and the joint venture company will be responsible for blending, loading and unloading fuels to BP customers. The contract will be fully implemented from September.
BP Australia released its own statement on Tuesday confirming the deal and named the joint venture company as Australian Terminal Operations Management Pty Ltd.
BP Australia also said it has formed a separate joint venture with Lowes Petroleum to operate BP?s regional depot business, enabling growth across parts of regional Australia. The new partnership will exclusively distribute BP fuels to business customers in most of regional Queensland, New South Wales and Victoria.
BP has also entered into agreements with the intention to appoint Great Southern Fuel Supplies to operate BP?s regional depot and logistics business in Carnamah, Geraldton and Kewdale in Western Australia, said BP.
"By partnering with trusted, established regional distributors, BP believes we can compete better in a changing landscape and provide the responsive customer service our regional customers demand and deserve," it said in a statement.
"These changes to our business go beyond restoring our competitive edge. We are reinventing our business to be more responsive to our customers and become the most preferred fuels brand in Australia and New Zealand", said Andy Holmes, president of BP Australasia.
BP shares were down 0.5% to 455.55 pence per share on Tuesday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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