BP sells Australian bitumen assets to Puma Energy

OREANDA-NEWS. BP is selling its Australian bitumen operations to downstream firm Puma Energy, which features global trading firm Trafigura as a key shareholder.

No price details were disclosed about the deal, which sees Puma become the operator of BP's bitumen operations in Brisbane and Townsville in Queensland state, Altona in Victoria and Hobart in Tasmania. The deal is still subject to regulatory approval.

BP will continue to operate the Kwinana-based bitumen production facilities in Western Australia for an interim period of at least 18 months, supplying bitumen products to Puma that will take on all other operations and customers in the Perth market. BP operates the 140,000 b/d Kwinana refinery in Perth

"We have decided that it is in the long-term interests of the bitumen business and its employees for it to be owned by another company who is better placed to invest in its future," said BP Australasia president Andy Holmes.

BP is already downsizing its Australian refining presence with it shutting the 98,000 b/d Bulwer Island refinery near Brisbane later this year, the third Australian refinery closure in as many years.

Puma already has Australian bitumen operations having bought the Sydney-based bitumen import business from refiner and marketer Caltex Australia in 2013. Its Asia-Pacific bitumen acquisitions started in 2012 with the purchase of Chevron's Vietnamese operations. It opened a 74,000t bitumen storage terminal last year at Tanjung Langsat in southern peninsular Malaysia's Johor state.