BP today 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.

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.  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, and with Toll to outsource logistics operations in Tasmania.

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.

Separately a new joint venture has been formed between BP and UGL Operations and Maintenance Pty Ltd to manage operations, capital and maintenance projects across BP’s terminal network in Australia.  The new JV, Australian Terminal Operations Management Pty Ltd (ATOM) 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 JV.

BP expects the new, independent terminals organisation will better position our terminals business for long-term success.

These decisions are driven by the significant increase in competition over recent years in terminal competitors and tank capacity, and across the regional business from traditional and new players.

Subject to regulatory and other approvals, BP plans to transition these businesses across to the new operating entities during the second half of 2015.

“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.

“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.”

“This will help to secure BP’s position, particularly given the rapidly changing downstream landscape in Australia and the challenging external environment.”